Additional Mortgage Payment Calculator

additional mortgage payment calculator

Making additional mortgage payments can significantly reduce the amount of time it will take to payoff your mortgage and will save thousands in interest payments. If you plan on living in your home for 5 years or more, then seriously consider making the additional payments. In some instances, making the additional mortgage payments makes more sense then refinancing to a 15 year mortgage.

This additional mortgage payment calculator below can be used to determine how much you can save by making additional payments each month and also how long it will take to payoff your mortgage. Simply complete the shaded areas and the calculator will return the results that pertain to your mortgage

Additional Mortgage Payment Calculator

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Before After
Monthly Payment
Total Interest Paid
Total Interest Saved
Total Payments Made
Years to Payoff

You may be able to increase your total savings by refinancing and making additional payments together. For example, you will save quite a bit if you are able to pay an additional $100 per month. However, it is possible that refinancing could also save money each month. Then, add that monthly refinance savings to the $100 and now your savings in both time and money has increased even more.

If you would like to get a rate quote for a refinance, simply complete this short rate quote form.

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Should You Make Extra Mortgage Payments?

There are conflicting schools of thought as to whether one should make extra mortgage payments to pay down the loan balance, or use those funds for something else. In the end it is a decision that you need to make, but here are some things to consider on both sides of the argument.

Why you should make additional mortgage payments

Paying down your mortgage will bring you closer to financial freedom putting yourself into position to have no housing payment at all. Plus, if you are the type of person who has difficulty saving money, then this will help prevent you from spending the money on things that do not build wealth.

If you are over the age of 40, it would be a great help to have paid off your mortgage before reaching retirement age when your income will likely be much lower than it is now.

Why you should not make additional mortgage payments

Interest rates are extremely low right now and some financial advisors believe it is best to use your extra cash to pay down other debt or invest elsewhere. You could put the extra money towards your retirement vehicle, a college savings funds, or even other real estate investments. 

Making additional mortgage payments potentially locks up that cash and prevents you from accessing it down the road without refinancing or applying for a HELOC.

We suggest you speak with a financial advisor or your accountant to determine which makes the most sense for you.

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