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Please support this website by sharing it with your friends and family. Thank You! Mortgage Payoff Calculator (2a) Extra Monthly Payments Who This Calculator is For: Borrowers who want an amortization schedule, or want to know when their loan will pay off, and how much interest they will save, if they make extra voluntary payments in addition to their required monthly payment. What This Calculator Does:This calculator provides amortization schedules for mortgages, with or without additional payments. If additional payments are made, interest savings and reduction in length of loan are calculated.Does amortization change with extra payments?Even a single extra payment made each year can reduce the amount of interest and shorten the amortization, as long as the payment goes toward the principal and not the interest (make sure your lender processes the payment this way).
How much does extra payment shorten mortgage?Shorten the loan term
(EXAMPLE: Consider your loan amount is $300,000 with an interest rate of 4% and a 30-year loan term. If you pay $150 additional toward the principal each month, you can expect to save $40,282 and pay off your mortgage almost 5 years earlier.)
What does making 2 extra mortgage payments a year do?Making an extra mortgage payment each year could reduce the term of your loan significantly. The most budget-friendly way to do this is to pay 1/12 extra each month. For example, by paying $975 each month on a $900 mortgage payment, you'll have paid the equivalent of an extra payment by the end of the year.
Is it true if you pay one extra mortgage payment a year?That one additional payment may help you pay off your mortgage as much as three to four years early—and if you make more than one additional payment per year, it's even faster! Not only do you save money on interest, but you'll be clear of having a mortgage payment at all much more quickly.
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