In the 6 months we’ve been paying our mortgage… we’ve paid off $1.3k on the loan.
If you pay off $1.3k in 6 months that gives you $216 and some change, a month, of loan paid off.
We want to refinance at 20% so we dont have to pay PMI anymore. 20% of the loan, $310,000 is $62,000.
It will take 287 months to pay off $62,000.
It 287 months is 23 years.
Yes, there are some estimations involved, and decimal points being lopped off. But my math is sound. How do I know? I checked it. Twice.
My husband asks… then how does the loan get paid off in 30 years, if we have a 30 year loan? Well… that’s simple.