How does mortgage prepayment work?
Forgive my ignorance, but I'm trying to dig into the math of a mortgage prepayment, so I can calculate the division between principal and interest going forward.
Let's say I have a hypothetical $100K 30-year fixed at 6%, on which I've made three payments (so when I look at the amortization table, I see that my principal balance is now $99.7K).
And then for the next payment (Payment #4) I decide to put an additional $10K towards principal. So by my math, my principal balance should be $89.6K (the $100 towards principal from Payment #4, plus the extra $10,000).
How do I understand the next payment that after? It wouldn't be Payment #5, right? Do I just jump down the amortization table to find the balance of $89.6K and work from there, so I'd have accelerated all the way to Payment #84?