Here's a financial math problem:
I have a mortgage at about $78,0000 with 5.5% interest and 56 of 360 monthly payments were made. I'm currently paying about $360/month in interest charges. If I pay it down by $50,000 what would the monthly interest payments be?
I've trying to build a amortization schedule, but the lump sum is difficult to represent. Do I just start over with 360-56=304 payments? It sounds like the bank will actually decrease the term of the mortgage. How is that calculation done? My main goal is to reduce interest charges. My second goal is to have a lower monthly payment.