this post was submitted on 20 May 2024
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FIRE (Financial Independence Retire Early)
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Most of my simulations occur in my head. As in simulating what it will be like to be job-free someday, haha.
When I bought my house, though, I did figure out how to do all the amortization tables myself so that I could compare all the different rates and points and stuff, along with figuring out early payment payoff periods. l felt way more in control having the same level of information available to me that the mortgage broker did.
It's really nice when comparing quotes for buying down a rate, or looking at the impact of additional payments. It's also incredibly easy to throw together. For anyone interested:
PMT(mortage rate/12, mortgage term * 12, -initial principle)
(mortgage rate/12) * remaining principle
payment - interest
prev principle - principle payment
Throw that into a spreadsheet and drag down. Add a
SUM()
to figure out total interest paid or whatever. I have aVLOOKUP()
to calculate interest for the current year for tax planning purposes, for example.Maybe I'll start an unofficial weekly post about various calculations I have in my spreadsheet. I have something like 30 tabs, so surely something there is interesting to others.