Debt Repayment Options
Option 2: Edit annual payments on the Planning page
In this example, the house has been linked to this mortgage and in the year of the house sale, the mortgage is automatically being paid off. That is why the 4th year shows a higher amount paid.
If the client is intending to pay off the mortgage more quickly, you can click on the value under the Amount Paid column and adjust it. For example, here we show that they are planning to accelerate the payments starting next year. We entered $16,000 for the amount paid for the next 2 years. Click here for more information about editing values on the Planning page.
This feature is especially helpful if you are trying to pay off the entire mortgage in one year. You don't need to calculate the exact amount due with interest. Simply enter a larger amount and that amount will be automatically adjusted by the software to the actual amount due.
In this example, we can enter $45,000 in the second row to replace the $16,000 that is currently there. Once we click Run Scenario to update the calculations, you will see the software has updated the $45,000 value entered to $39,467 which is the actual amount due by the end of the year.