Mortgage Loan Early Payment Calculator: Reduce Your Debt Faster

When you take out a mortgage loan, you make a long-term commitment to pay back the money you borrow. The length of your loan term can range from 15 to 30 years, and the amount of time it takes you to pay off your loan will affect the total amount of interest you pay.

If you're like most people, you'd probably like to pay off your mortgage loan as quickly as possible. By making extra payments on your loan, you can reduce the amount of interest you pay and save thousands of dollars over the life of your loan.

The Mortgage Loan Early Payment Calculator can help you determine how much money you can save by making extra payments on your loan. The calculator takes into account your current loan balance, interest rate, and the amount of your extra payments. It will then show you how much time you can save on your loan and how much money you can save in interest.

Based on data from Freddie Mac, the average interest rate on a 30-year fixed-rate mortgage was 3.11% in 2021. If you have a $200,000 loan at this interest rate, you would pay $844,210 in interest over the life of your loan. However, if you made an extra payment of $100 each month, you could save $31,049 in interest and pay off your loan in 23 years and 8 months instead of 30 years.

How to Use the Mortgage Loan Early Payment Calculator

The Mortgage Loan Early Payment Calculator is easy to use. Simply enter the following information:

• Your current loan balance
• Your interest rate
• The amount of your extra payments

The calculator will then show you how much time you can save on your loan and how much money you can save in interest.

Tips for Making Extra Payments on Your Mortgage Loan

There are several ways to make extra payments on your mortgage loan. You can:

• Make a lump sum payment. This is a good option if you have a large sum of money available, such as a tax refund or inheritance.
• Increase your monthly payments. This is a good option if you have a steady income and can afford to increase your monthly payments.
• Make bi-weekly payments. This is a good option if you get paid bi-weekly. By making bi-weekly payments, you will make an extra payment each year.
• Round up your payments. This is a good option if you can't afford to make a large extra payment each month. By rounding up your payments to the nearest $10 or $20, you will make a small extra payment each month.

Conclusion

Making extra payments on your mortgage loan is a great way to save money and pay off your loan faster. The Mortgage Loan Early Payment Calculator can help you determine how much money you can save by making extra payments. If you are considering making extra payments on your mortgage loan, I encourage you to use the calculator to see how much you can save.