If you have a variable rate loan, you could use either the current rate you are paying, an average over the course of the loan to date, or the highest or lowest rate you have paid to date.
Paying just a little extra on your mortgage each month can have a dramatic effect
on the time it takes you to pay off your mortgage and the amount of interest you
pay over the life of the loan. This calculator is designed to show you how much
time and money — over the life of the loan — you could save by paying
an additional amount in your mortgage payment each month.
Making an additional principal payment of $100 to $200 per month to your usual payment could take years off the length of your loan and potentially save you thousands of dollars in interest.
Your Results
The results below show the time and money you would save by accelerating your mortgage
payments. Other popular payment options you could consider to reduce the time and
cost of your mortgage loan include making biweekly payments or making one additional
payment each year. All of these strategies can help you save money and time without
incurring the expense of refinancing. Keep in mind that not all mortgages have a
prepayment feature so you should consult with the holder of your mortgage for the
specifics of your situation.
| The original face value of your loan: |
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| Additional amount you are adding to your monthly payment: |
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| By making this extra payment, you will save the following amount of interest: |
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| Also, your home will be paid off this many years early: |
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The graph below shows the difference between paying your mortgage with the minimum required payments vs. adding the additional amount you specified to your mortgage payment each month. The more you can manage to pay each month, the faster you'll pay off your mortgage and the less interest you'll pay.
Accelerated Mortgage Projection
