See how an extra monthly principal payment changes mortgage payoff time and interest cost.
Assumes a fixed-rate mortgage, unchanged required principal-and-interest payment and all extra money applied directly to principal.
Extra principal reduces the outstanding balance sooner. Because later interest is calculated on a smaller balance, the accelerated schedule can save interest and shorten the mortgage term.
Confirm that additional money is credited to principal and check for any prepayment restrictions or fees. Real mortgage servicing rules can differ from this standard amortization model.
No. This model keeps the scheduled principal-and-interest payment unchanged and adds your extra amount on top.
No. Those costs are separate from principal-and-interest amortization.
The calculator does not include penalties. Review your loan terms before making an early-payoff decision.