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Mortgage Calculator: Factoring in Extra Payments

Triston Martin

Oct 27, 2023

Mortgages are a significant financial commitment, often spanning decades. While the idea of paying off a mortgage might seem daunting, there are strategies homeowners can employ to reduce both the term of the loan and the total interest paid. One such strategy is making additional payments. This article will explore the benefits of using another extra payments mortgage calculator and how it can transform your financial future.

Average Mortgages

Average mortgages are $250,000, 30-year, and 5%. With no extra payments, the loan would cost $230,000 in interest. Adding $50 to the monthly payments mortgage calculator

might save approximately $20,000 in interest. This simple action can also speed up mortgage completion by two years.

Simply put, reducing principal early reduces interest. This technique makes homeownership faster and saves a lot of time. The best part? Even tiny, consistent additions can save a lot.

How the Additional Payments Mortgage Calculator Works

The additional payments mortgage calculator is more than just a tool; it's a financial ally. It empowers homeowners by showing the benefits of higher mortgage payments. By choosing loan amounts, interest rates, and additional installments, this calculator provides a lot of information.

Firstly, it reveals the potential interest savings over the entire duration of the loan. This insight can be a game-changer, especially when homeowners realize the long-term benefits of their short-term sacrifices.

Next, it clarifies the number of years you can trim off your mortgage. Imagine being mortgage-free several years ahead of schedule! The freedom and peace of mind that come with it are unparalleled.

Lastly, the calculator gives a comprehensive overview of the total amount payable over the loan's duration, both with and without the extra payments. This comparison can be an eye-opener, showcasing the tangible benefits of a slightly increased monthly commitment.

Benefits of Making Extra Payments

Mortgages are generally associated with long-term commitment. What if you could reduce that commitment and save money? Increasing your mortgage payments can have long-term financial benefits.

Interest Savings

One of the most compelling reasons to make additional payments is the savings on interest. Mortgages, by nature, come with interest that compounds over the years. By chipping away at the principal amount with extra payments, you effectively reduce the base on which this interest is calculated. Over the years, this can translate to substantial savings. Every dollar you put towards your principal today can save you multiple dollars in interest in the future.

Shorter Loan Term

Being mortgage-free is a dream for many. By making additional payments, you bring that dream closer to reality. Every extra payment you make reduces the lifespan of your mortgage. This not only means you get to own your home sooner but also that you achieve a sense of financial independence faster. It's a step towards a life with fewer monthly obligations.

Increased Home Equity

Your home is more than just a place to live; it's an investment. Making extra monthly payments mortgage calculator payments boosts the equity you hold in this investment at a quicker pace. A higher equity means a larger piece of your home belongs to you and opens doors to financial opportunities. Whether it's refinancing options or the possibility of a home equity loan, a higher equity puts you in a favorable position.

Strategic Ways to Make Extra Payments

While the idea of making extra payments sounds appealing, the question is, how can you effectively do it? Here are some strategies that homeowners have found helpful.

Bi-Weekly Payments

A simple yet effective strategy is to switch to bi-weekly payments. Instead of the usual 12 monthly payments, you make 26 half-monthly payments. This might sound like a minor change but it results in one extra full payment annually. Over the years, this strategy, which can be easily tracked using an additional payments mortgage calculator, can lead to significant savings and a shorter loan term.


Another straightforward approach is to round up your extra payments mortgage calculator payments. Why not increase your monthly commitment from $1,275 to $1,300 or $1,400? This gradual contribution may appear minor, but its cumulative effect can be tremendous. An additional payments mortgage calculator can give you a clear picture of the long-term benefits of this strategy.

Use Unexpected Funds

Life is full of surprises, some of which come with financial perks. Consider directing these unexpected funds towards your mortgage, whether a bonus at work, a tax refund, or a generous gift. These lump sum payments can make a sizable dent in your principal amount. Over time, this strategy reduces the interest you pay and brings you closer to the day you make your final mortgage payment.

Things to Consider Before Making Extra Payments

Making extra mortgage payments is a good idea, but you must consider your finances. Paying off a mortgage faster may sound enticing, but each person's financial situation differs.

Consider any outstanding debts with higher interest rates, such as credit card balances. It's a simple math equation: if the interest on another debt exceeds your mortgage, it's wise to tackle that first. Clearing high-interest debts can free up more funds in the long run, allowing you to focus on your mortgage with even larger additional payments.

Furthermore, the financial landscape is vast, with numerous investment avenues. Research and assess other investment opportunities before channeling extra funds into your mortgage. Some investments offer returns that surpass the savings from your mortgage interest. It's all about maximizing the value of every dollar.


The journey of homeownership is filled with decisions, and how you manage your mortgage is one of the most significant. Tools like the additional payments mortgage calculator offer homeowners a clear perspective on the potential advantages of ramping up their payments. This clarity is essential, as it allows homeowners to visualize the long-term benefits of their short-term sacrifices.

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