Additional Mortgage Payment Calculator

How Much Time and Money Can You Save Through Additional Mortgage Payments?

How to Use Our Additional Payment Mortgage Calculator

You may ask yourself, “If I make two extra mortgage payments a year, will that be enough to limit my spending on interest?” Our mortgage calculator is an easy-to-use feature to help calculate the best additional mortgage payments to enhance your savings. The steps to using the Homesite Mortgage calculator include:

  1. Input basic mortgage details into the calculator
  2. Add extra payment information
  3. Get the results from the calculator

After determining your results, our mortgage calculator will provide additional information such as payoff time, total interest savings and a yearly balance schedule.

Additional Mortgage Payment Calculator Definitions

  1. Loan Amount: The original loan amount you took to purchase your home. Note that the loan amount does not include the down payment.
  2. Annual Interest Rate: The annual interest rate is the interest charged on top of your principal payments of your home loan.
  3. Loan Term: The loan term is how long it will take for you to repay the mortgage.
  4. Start Date of Mortgage: The start date of the mortgage is simply the month and year you began making mortgage payments on your home loan.
  5. Additional Payment Amount: The additional payment amount is how much you can put toward your mortgage on top of your monthly mortgage payments.
  6. Number of Additional Payments: The number of additional payments per year is how frequently you will make the additional payment each year remaining in your mortgage.
  7. Start Date of Additional Payment: This is the month and year of your mortgage that you start(ed) making the additional mortgage payments.
  8. Balance Schedule: A table that lists each regular payment and extra mortgage payments over time.
  9. Time Saved: The amount of years and months you won’t make mortgage payments due to the additional mortgage payments.
  10. Total Interest Savings: The amount of money you save in interest by paying your mortgage off sooner than what the original loan term entailed.

Additional Mortgage Payment Calculator FAQs

What’s the most effective way to reduce the amount of interest paid throughout my mortgage?

With the exception of refinancing to a lower interest rate, making additional mortgage payments is a great way to save thousands of dollars in interest. The earlier in your mortgage you make additional mortgage payments, the more money you’ll save in interest since the interest is paid off first over the course of your mortgage.

Does it ever not make sense to make additional mortgage payments?

Be sure to consider how much your tax deduction will be with the interest charged on your annual mortgage. Speak with your tax preparer to calculate if you’ll incur more savings by paying less interest with additional mortgage payments or through the tax deduction you’ll receive through your mortgage interest.

Why make additional payments toward my mortgage?

Many homeowners strive to be debt-free and want to free up some of their monthly expenses sooner than the original mortgage terms.

Tips and Strategies for Effective Extra Payments

Different payment strategies work for different people when making additional loan payments. Regardless of payment strategy, keeping track of what you've paid and ensuring your additional mortgage payments align with your overall financial goals are great ways to make the most out of your loan payments.

Calculating and Tracking Additional Mortgage Payments

Additional irregular payments are a common way for many to pay down their loan's principal, but they can be challenging to track. With our mortgage calculator, we are ready to help you understand your savings, regardless of when they occur. Two different payment scenarios for additional mortgage payments include:

1. Biweekly Payments

When paying on a mortgage loan, loan providers require monthly payments. However, biweekly payments can help you shave off your loan's principal consistently. Biweekly payments include making half your mortgage payment every two weeks, which will add an extra month's payment to each calendar year, having the potential to take years off of your loan's principal.

To input biweekly payments into the Homesite mortgage calculator, you will put your monthly mortgage payment in the “Additional payment amount” input. Then, select 12 times for the number of additional payments per year category in the calculator. Our calculator will determine your interest savings and loan pay-off time.

2. Extra Loan Payments in the Middle of the Term

As you continue to pay off your mortgage, it might become more accessible to make additional mortgage payments in the middle of your loan term. If that is the best method for you, it is still possible to calculate your savings using our mortgage payment calculator.

When inputting your loan information into Homesite's additional mortgage payment calculator, enter the current balance of your mortgage loan and the amount of time left on your loan repayment. Once that information is input, you can calculate additional loan payments specific to you by entering the amount of additional payments you plan on making throughout the year and what those payments are.

Your Financial Goals

Additional mortgage payments are a great way to save in the long run. However, you want to plan for these payments effectively so other aspects of your life don't suffer. It is essential to remember that additional payments do not have to occur every month, allowing you to budget for the amount of additional mortgage payments you want to pay each year.

When planning to budget for additional mortgage payments, you want to ensure that your extra payments correlate with your other financial goals. Our additional mortgage payment calculator makes it easy to compare your mortgage loan savings to other potential savings.

Though you may want to pay your mortgage off quickly, you want to compare other payment factors to ensure there is no financial strain for other necessary payments. Please remember that making these extra payments should not be a financial burden but a strategy to achieve your goals through budgeting and overall saving.

Taking control of your mortgage payment is a rewarding experience with various potential benefits. Using Homesite's mortgage calculator, you can plan the best way to pay off your mortgage quickly and capitalize on your savings.

Contact Homesite Mortgage if you have questions about how much you could save through additional mortgage payments.