Extra Payment Mortgage Calculator
Discover how extra payments can significantly reduce your mortgage term and save you money in the long run.
How to Use This Calculator
Enter your loan details, including the loan amount, interest rate, and loan term. Then, input any extra monthly payments or lump-sum payments you plan to make. The calculator will show you how these extra payments affect your loan balance, monthly payments, and overall interest paid.
Purpose of This Tool
This calculator helps you visualize the impact of making extra payments on your mortgage. By seeing how much you can save in interest and how much sooner you can pay off your loan, you can make informed decisions about your mortgage repayment strategy.
Frequently Asked Questions
What is an extra payment mortgage calculator?
An extra payment mortgage calculator is a tool that helps you determine how making additional payments on your mortgage can affect your loan term, interest paid, and overall savings.
How do extra payments affect my mortgage?
Extra payments reduce your principal balance faster, which can significantly shorten your loan term and reduce the total interest you pay over the life of the loan.
Should I make extra payments on my mortgage?
It depends on your financial situation. Making extra payments can save you money in the long run, but you should consider other factors such as high-interest debt, emergency savings, and investment opportunities.
How often should I make extra payments?
You can make extra payments monthly, annually, or as lump sums when you have extra cash. The frequency depends on your budget and financial goals.
Will making extra payments change my monthly payment amount?
Generally, making extra payments won't change your required monthly payment. Instead, it will reduce your loan term and the total interest you'll pay over the life of the loan.