Mortgage Prepayment Calculator
Discover how extra mortgage payments can save you tens of thousands in interest and help you own your home years earlier
Calculate Your Savings
Why Pay Extra on Your Mortgage?
- •Save thousands (often tens of thousands) in interest over the life of your loan
- •Own your home years earlier and build equity faster
- •Reduce financial stress and improve long-term security
- •Free up future income once mortgage is paid off
- •Guaranteed "return" equal to your mortgage interest rate
Smart Strategies
- •Round Up: Pay $2,000 instead of $1,943.76 each month
- •Bi-Weekly: Pay half your mortgage every 2 weeks (equals 13 payments/year)
- •Windfalls: Apply bonuses, tax refunds, or raises to principal
- •Recast: Make lump sum payment and ask lender to recast (lower payment)
- •Refinance: Lower rate + extra payments = maximum savings
Important Considerations
- ✓ Check for prepayment penalties in your mortgage agreement
- ✓ Ensure extra payments are applied to principal, not future interest
- ✓ Maintain adequate emergency savings (3-6 months expenses) before aggressive paydown
- ✓ Consider opportunity cost - could you earn more investing elsewhere?
- ✓ Keep records of all extra payments for tax and verification purposes
Start Your Journey to Mortgage Freedom
Even small extra payments can make a massive difference over time
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