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— Using Your BLOC to Paydown a Mortgage —
Never Let Your BLOC Move Into Negative Territory

Your BLOC should not drop below a zero balance. This is money that you are giving away to the banks. So what should you do if your BLOC balance reaches zero:



  • How about paying down your mortgage:

    Example:
    assume you closed on the following mortgage loan four years ago to the month:

    mortgage loan amount: $300,000
    term: 30 years
    APR: 6.00%

    total monthly payment: $1,798.65
    total payments made: 47 payments

    you will then use your BLOC to make an additional payment of $5,000 on the next payment.

    your BLOC will look like this:

BLOC Account
Starting Credit Line Balance: $60,000

Month
BLOC Activity
Advances from BLOC

Payments to BLOC

Balance Owned
Aug Beginning Balance
(from slide show #10)
    $(844)
Aug BLOC Pay Mortgage Principal $5000   $4,156
Aug BLOC Living Expenses $4000   $8,156
Aug Pay Paycheck   $5,000 $3,156
Aug Pay Auto Loan Payment   $362 $2,794
Aug Activity $9,000 $5,362 $2,794
Paying down your mortgage can save you money
by lessening the amount of interest you pay on your mortgage loan.

Your savings will approximate to the following:

You will be trading $18K mortgage in interest by using your BLOC to advance $5K.

Mortgage Loan Rate Term
$300,000 6.00% 360 Months
Monthly Payment: $1,798.65
Total Interest to be Paid after 360 months: $347,514
Interest to be Paid after making a $5,000 payment: $329,504
Interest Savings (approximately): $18,010

Download this spreadsheet to run your own numbers.

FREE Download (MS Excel Worksheet)

If you have MS Excel - or other type program - use this amortization schedule to analyze your own payment and payoff numbers.

review this further by linking to our mortgage payoff module

 

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