Extra Mortgage Payment Calculator
When looking at your overall financial goals, one of them should be to pay off your mortgage sooner than the term you selected. By making extra payments on an annual basis, you can save tens of thousands of dollars in interest over the term of your loan. Additionally, one extra payment annually, can shorten your term by as much as 5 years! So, The Cain Mortgage Team would love to help you determine how to shorten your term and pay less interest.
Mortgage calculator with extra payments excel
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Determining how much extra to pay is complicated because your income can vary and bills are sometimes unpredictable. So, there may be different times of the year when extra money is available and it is possible to make one extra payment or you may prefer to be consistent and pay an extra 1/12 of the payment on a monthly basis. Either way, one extra mortgage payment can save you thousands in interest. We have included an excel spreadsheet for your use so that multiple scenarios can be entered to find the best option for you.
The spreadsheet above will allow you to enter different rates, loan amounts and terms and will be a great tool to be utilized for budgeting purposes. Additionally, the excel spreadsheet will serve as a visual tool to understand the impact of extra mortgage payments and hopefully motivate you to consistently pay extra mortgage payments.
Accelerated mortgage payoff calculator
Your financial situation will fluctuate throughout the term of your mortgage loan. You might be in a healthier financial position at different periods of the mortgage term. Various life events, such as work bonuses or inheritances, may create large sums that will allow you to pay down or off your mortgage faster. If you pay down your mortgage with a large sum, ask your Lender about Recasting your mortgage. This will allow you to reduce your monthly payment by resetting your mortgage payment based on the current balance.
Extra principal payment calculator
Using a mortgage calculator will help determine your new payment based on the large sum you plan on applying to the mortgage. It also offers a loan comparison from its original arrangement to the new monthly payments to match your payoff goal. The mortgage calculator doesn’t just show you how much more you’ll need to pay to cut your principal debt faster, and it also shows you how much you’ll save in interest.
Enter various options in your calculator to maximize your savings and find the solution that fits you best. After all, it’s a professional investment transaction rather than a home purchase. You can also choose to refinance your loan on a shorter term to lower your overall interest expense dramatically.
Pros and cons of early mortgage payments
Paying off your debt is a decision that requires some thought. Analyze whether supplemental payments towards your home are the right decision for you. Consider the market influences, existing investments, and your job security. Contact the Cain Mortgage Team today and we can explain to you the pros and cons of early payments on your Mortgage.
Contact the Cain Mortgage Team Today!