Tagged: Early mortgage payoff
2018 January 1 at 9:10 pm #462
Another thing I am not sure if it is correct. It has to do with home property. What you should see on the screen shot below is my home to be paid off by 2023. I am not sure why the negative value isn’t progressing to zero gradually. I am not paying off $215,376 in the last year. Makes me feel I have input something wrong.
2018 January 1 at 9:48 pm #464darrowkParticipant
Hi Blair, unfortunately I’m not able to see your screenshot, which makes this hard to diagnose. (Maybe David can help us debug that.)
Meanwhile, I just did a simple test of a PropertyEvent with early payoff and it seemed to work as expected. The Home Loan went down gradually, then went to zero in the year of the payoff.
I’m wondering if you have an explicit End Year set on that PropertyEvent? That means the house is being sold in that year, vs. being held indefinitely. (We need to document that better, and I’ve made a note of it.) Try setting End Year to unending if that’s the problem.
My simple test:
Start Year: 2008, this is the year the house is purchased
End Year: unending
Purchase Price: 250000
Mortgage: 30, need this for amortization even if being payed off early
Early Payoff Year: 2023
2018 January 2 at 6:34 am #468
2018 January 2 at 6:36 am #469
2018 January 2 at 2:06 pm #471darrowkParticipant
Ok Blair, that worked, I can see your screen now.
What I’m seeing looks like the sale of a home, not an early payoff. That the Home Property column goes to zero in 2023 means you no longer own the asset. Typically this would happen if you set an End Year on the PropertyEvent, instead of or in addition to an Early Payoff Year. The End Year is used as the year when the property is sold. Try setting End Year to unending if that’s the problem.
If that doesn’t get you going, the next step would be to send us a screen shot of your input data for that Home event. Also please confirm that early payoff is your intention, because your starting message above says “I am not paying off $215,376 in the last year.” Thanks.
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