Maximizing the Power of Extra Mortgage Payments

Buying a house is one of the most significant financial investments many people make. Making extra mortgage payments can be an effective way to pay off your loan faster, reduce interest paid over the life of the loan, and save thousands of dollars in interest. In this article, we will explore how to use our 'extra payment mortgage calculator' to maximize the benefits of making extra payments on your mortgage.

Our calculator allows you to input various extra payment scenarios, including one-time lump sums, regular monthly or biweekly payments, and recurring weekly payments. You can also combine multiple extra payment types in parallel to create a customized plan that suits your financial situation.

To get started, simply fill out the top section of the calculator with your normal mortgage information. Once you've entered all the required details, click on the 'Calculate' button to see side-by-side results for your old loan and the loan with extra payments made. At the bottom of the calculator, you'll also find an option to turn on displaying a monthly amortization schedule, which shows your loan payment progress month-by-month.

One of the most effective ways to make extra mortgage payments is by setting up recurring payments, such as weekly or biweekly contributions. These types of payments can be especially helpful if you receive regular income or bonuses that you can use towards your mortgage. You can also input one-time lump sum payments, such as an inheritance or a tax rebate, and our calculator will automatically apply these payments to your loan.

In addition to making extra payments, you may want to consider combining them with other homeownership expenses, such as property taxes and insurance premiums. Our calculator allows you to input these expenses in the middle section, giving you a more accurate picture of your overall financial situation.

For example, let's say you're considering making an extra monthly payment of $50 for 2.5 years, followed by an extra monthly payment of $100 for 3 years. You can enter this scenario into our calculator and see how it affects the life of your loan and the total interest paid over time.

By using our 'extra payment mortgage calculator' to plan your extra payments, you can save thousands of dollars in interest and pay off your mortgage faster. Whether you're looking to refinance at today's low rates or simply want to get a head start on paying off your loan, this calculator is an invaluable tool that can help you achieve your financial goals.

Usage Instructions

1. Enter your normal mortgage information at the top of the calculator.

2. Input various extra payment scenarios using the 'Add Payment' link.

3. Click on the 'Calculate' button to see side-by-side results for your old loan and the loan with extra payments made.

4. Optional: Add other homeownership expenses in the middle section of the calculator.

Getting The Most Out of Using This Calculator

1. Expand the drop-down menus for usage tips and suggestions.

2. Explore our comprehensive guide offering money-saving tips below the calculator.

By following these simple steps and using our 'extra payment mortgage calculator' to plan your extra payments, you can take control of your mortgage and achieve financial freedom faster than ever before.

Extra payment mortgage calculator