What impact will a few extra payments make on your mortgage?
Thinking about paying off your mortgage early? Use our mortgage calculator to find out what an extra one-time, monthly, or yearly payment could mean for the life of your loan.
How to use the calculator
Once you input your mortgage, extra payment, interest rate, and month you start then the calculator will show you how much you'll save in interest and how much sooner you'll pay off your loan. The amortization chart will show your monthly payment and how much of that is going toward principle and interest every month.
How does an extra payment impact my interest?
You can ask your lender if you can make your extra payment go straight to your mortgage principle instead of your interest. This will lower the amount of money you pay interest on every month, which can save you tens of thousands of dollars in interest over the life of your loan.
How does an extra payment impact the life of my loan?
When you pay extra toward your mortgage principle, you can cut months or even years off the number of years you're paying a mortgage. That's great news because it could mean that you start retirement with absolutely no mortgage payment. Or that when you decide to downsize, the sale of your home is one hundred percent profit instead of money going back to the bank.
How to decide how much extra to pay
Take a look at your budget and see how much extra money you have every month. You don't have to put all of that money toward your mortgage, even $25 or $50 can make a big impact. Remember, this calculator is showing your base monthly payment and does not include your taxes and insurance, so your actual payment may be a little higher than shown.
Feel free to play with the calculator to see how much you can save in different scenarios!
