You can save money and shave years off the length of your loan by paying more on
your monthly mortgage payment than your regularly scheduled amount. How much
can you save? Fill in the boxes below, including the amount of the additional
payment and the number of times you will make that increased payment each year.
Additional Payment Calculator-How Much Can I Save By Making Additional Payments?
Consumers can save money and literally take years off the length of their loan by making additional payments on their mortgage.
How it Works
Additional payments paid to your mortgage reduce your outstanding balance but also reduce the amount of future interest you must pay on your mortgage loan as well. As a result, your mortgage is paid off sooner than it would ordinarily be completed if you just made the standard payments.
Check for Pre-Payment Penalties
Remember that some lenders may include a pre-payment penalty in their terms which could end up costing you money if you pay off your loan early. Some lenders require consumers to pay up to six months of interest on a portion of the loan balance. If you already have a loan and are considering using an additional payment strategy to shave some time off the length of your loan, try contacting your lender to obtain a waiver of the pre-payment penalty.
If you’re shopping around for a mortgage, know that many lenders now offer bi-weekly mortgage programs that will allow you to pay half your monthly mortgage payment every two weeks. This can save you thousands of dollars over the length of your loan.
Interested in finding out how much you can save on your loan with this type of program? MortgageLenders.org can connect you with qualified lenders ready to help you get started.