A little less than a year ago, I worked at Wells Fargo Home Mortage so I know what it's like when it comes to putting things into an amortization schedule and figuring out how much money you save if you pay it off in this amount of time, etc. To figure all of this out, the easiest part of this is to figure out how far along you are within your mortgage. Once you do that, reduce the remaining maturity of your loan from 25 years to 20 years because like it says you want to reduce it by 5 years. The next thing to do is to put together the loan details, then alter the maturity and determine the monthly principal and interest payment. If there is any increase within your monthly expenses, then the idea of changing your term over the life of the loan is definitely a bad idea.
Your interest rate is 5.75% and the loan was orignially $141,000. The prinicpal and interest payment is $822.84 and after making 60 payments, your remaining loan balance is $130,794.68. The payment I came up with for my prinicipal and interest in order to shorten my term is $919.29. You have add that to my escrow which is $261.13, which would make my total monthly payment $1,180.42. I'll end up increasing my payment by $95.44 a month. The formula I was given in class was very hard for me and it took me a while to actually get use to use it, so I decided to go ahead and use an Excel spreadsheet to come up with my answer. I took a class back in high school for Microsoft Office, so I do still remember some things about Excel. The formula I used was PMT = (240, 5.75/12, 130.794.68) and 240 equals the number of remaining monthly payments, 5.75/12 equals the monthly interest cost and $130,794.68 is my remaining balance. After realizing how much of a