A  B  C  D  E  
1  condo cost  105265  monthly rate  
2  loan amount  **  **  
3  monthly payment  **  30 yrs interest  
4  **  
5  Month #  End of Month Payment Amount  Interest Paid that Month  Principal Paid that Month  Loan Balance Remaining 
6  1  **  **  **  ** 
7  2  **  **  **  ** 
8  3  **  **  **  ** 
A  B (FORMULAS)  C (FORMULAS)  D (FORMULAS)  E (FORMULAS)  
1  condo cost  105265  monthly rate  1st years total interest  
2  loan amount  =.8*B1  =.0675/12  =c6 + c7 + ... + c17  
3  payment  **  30 yrs interest  
4  **  
5  Month #  End of Month Payment Amount  Interest Paid that Month  Principal Paid that Month  Loan Balance Remaining 
6  1  **  **  **  ** 
7  2  **  **  **  ** 
8  3  **  **  **  ** 
TABLE 2 
monthly payment  1st yr total interest  Year 2 balance  Year 5 balance  30 yrs interest 

Original Info  
Option 1 Lower Rate  
Option 2 Smaller Loan 
Paying extra each month on option 1. If I choose option 1, then I have the lowest monthly payment. Perhaps I can afford to pay more per month. Let's investigate this to see what happens. Using option 1, what happens if I can pay an extra $20 each month? We would tell the bank that this extra $20 should go towards the principal. Namely, b3 changes via adding +20 at the end to =PMT(C2,360,B2) + 20.
TABLE 3 


Month #  End of Month Payment Amount  Interest Paid that Month  Principal Paid that Month  Loan Balance Remaining 
EXCEL MONTHLY PAYMENT 
TOTAL INTEREST OVER THE LIFE OF THE LOAN 

NUMBER  
FORMULA 

Option 1  Option 2  


Option 1  Option 2  


 Option 1  Option 2  


 Option 1  Option 2  


Note that this tax savings is related to how the money was used (ie choosing Option 1 or Option 2), and that the other option does not get this tax savings due to the setup of tax laws.  Option 1  Option 2  


Note that this tax savings is a result of larger interest paid, and that the savings is only a small percentage of the higher interest paid.  Option 1  Option 2 