Mortgage-over-mortgage payment/principal calculator?

[Geoffrey]

Hi All,

Most mortgage payment calculators project out 30 years, but they do not include adjustments in payments/principal/interest that occur every mortgage renewal date (such as each 5 years). As a result, it's not possible to predict changes in passive incomes streams that occur with every new mortgage (every 5 years) with one calculation.

Is there such an online calculator?

I want to observe changes in mortgage payments amount and principal taking into account that new mortgages are required 4-5 times over the 30 or so years I may hold onto properties before selling them.

Hope I'm making sense, but such a calculator could be very valuable for anyone predicting passive income over housing costs over time.

 

[Thomas Beyer]

Anyone able to predict interest rates beyond five years is so smart that they don't calculators.

You can easily build that yourself as a 30 year amortized mortgage today will be a 25 year mortgage in 5 years with a known remaining principal amount. What you do not know of course is the interest rate. But you can string together 6 such 5 year calculators yourself as every five years you know the principal amount when guessing / stating / estimating the interest rate !

 

[Geoffrey]

Yep, that's how I've been doing it, stringing together 5 year calculations. I was hoping for something a little more efficient, but doesn't seem that exists. Yeah judging the interest rate is a major confounding variable. In my relatively short history in real estate it has been an era of very low rates, but the graphs on the early 90s and 80s show major differences, those who have been investing a long time have experienced, of course.

I assume interest rate increases will cancel out otherwise increases in cash flow based on principal reduction. Just as a shorthand, no use predicting, just hoping for cash flow increases.

Having properties paid off in 25-30 years is not much of a strategy if you are at a later stage and richer than ever necessary and struggling in the preceding decades. Gotta spread the benefits out over time, at least in my case.

 

[Thomas Beyer]

Paying a house off is just like shuffling money from your right pocket into you left. Principal paydown is equity, for sure, but it is illiquid. What do you aim for ? Cash-flow or maximum ROI ?

Further thoughts on cash-flow vs ROI here: http://myreinspace.com/threads/what-is-better-cash-flow-or-higher-roi.26596/

And on the Agony and the Ecstasy of Re-finance or Sell here http://blog.reincanada.com/sell-or-refinance-the-agony-and-the-ecstasy