How to Calculate a Mortgage Early
Paying off a mortgage early can save homeowners thousands of dollars in interest fees. When you make extra payments on a mortgage, these payments go directly toward paying down the principal balance on the mortgage. The entire mortgage schedule changes because the next regular payment covers less interest than was intended and more principal. Online mortgage calculators help you calculate the exact impact of extra payments in helping you pay off your mortgage early.
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Instructions
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Look up basic information about your mortgage, such as the amount borrowed, interest rate, number of payments and the date on which the mortgage began. All this information should be on the paperwork you received when you took out the mortgage.
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Navigate to a website with a mortgage calculator that includes the feature of adding extra payments.
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Type the basic information about your mortgage into the mortgage calculator and confirm that it calculates the correct monthly payment.
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Type in the amount of your extra mortgage payment that will help you pay off your mortgage early. Some calculators allow you include extra payments every month, every year, just once or any combination of those frequencies.
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Click on the button to view your new amortization table. The table breaks down each payment into how much goes toward principal and how much toward interest. The last payment on the amortization table will show you the new early payoff date for your mortgage.
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