Want to own your home free and clear sooner? Even small changes to how you pay your mortgage can shave years off your loan and save you thousands in interest. Use the free calculator below to see how much time and money you could save.
How the calculator helps
Enter your loan balance, interest rate, and monthly payment, then add an extra amount to see how your payoff date changes. You can compare your current schedule to a faster one and see the total interest you would save.
Ways to pay off your mortgage faster
- Add a little extra each month. Even a small amount toward principal reduces the balance that interest is charged on.
- Make one extra payment per year. A lump sum from a tax refund or bonus, applied to principal, can cut years off your loan.
- Switch to biweekly payments. Paying half your payment every two weeks results in 26 half-payments, which equals 13 full payments a year instead of 12.
- Round up your payment. Rounding to the next $50 or $100 is easy to keep up and adds up over time.
- Consider refinancing. If rates have dropped or you can move to a shorter term, a lower rate may cut your total interest. Check closing costs first.
Before you start paying extra
Check with your lender that extra payments are applied to principal and not held for the next due date. Also confirm there is no prepayment penalty on your loan. It is also worth weighing paying down your mortgage against other goals, like an emergency fund or higher-interest debt.
Try it now
Run a few scenarios in the calculator and see what works for your budget:
This calculator and article are for general information only and are not financial advice. Talk with your lender or a financial professional about your specific situation.
The blue font color is interesting, but I'm not sure its always the way to go. The Mortgage Calculator worked! very cool to have that info all of a sudden.
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