Extra Mortgage Payment Calculator
Extra mortgage payments can sometimes be advantageous but sometimes they’re not worth the hassle. This extra mortgage payments calculator is designed to help you decide how advantageous extra mortgage payments on your home loan would truly be. Will it help you pay off your home loan faster or will it not make much of a difference at this point? This extra mortgage payments calculator will answer that for you.
SHOULD I MAKE EXTRA MORTGAGE PAYMENTS?
First, input the original terms of your loan into the extra mortgage payments calculator: the loan amount, appraised value, loan term in years (15 or 30 year mortgage), interest rate, and the cost of your yearly property tax and property insurance.
Then select which method of extra mortgage payments you’d like to explore (lump sum or recurring) and the given amount. You’ll also want to specify at what point in the loan process these extra payments are occurring – the earlier your extra payment takes place, the more likely it is to have a larger effect. If it’s a recurring extra payment, you can also select the frequency with which you want these extra mortgage payments to occur.
Let the extra mortgage payments calculator do its thing and discover whether or not the money saved seems worth it. It’s important to note that you’ll only be saving money on the interest by making extra mortgage payments. No matter what you’ll still owe the total amount of the principal on the loan.