This mortgage amortization calculator can be used for determining monthly or annual amortization schedule for any given mortgage loan. You can also use it for determining interest accumulation and amount of monthly payments.
Mortgages are usually based on longer repayment periods. It's a natural phenomenon as money that is lent tends to be quite big. However, longer repayment periods can also be a source of maximizing profits for lending banks. Just check out the mortgage amortization calculator here and the table it generates for amortization and you will find out how large interest payments get concentrated at start of loan term. So, for quick amortization of mortgages, different techniques can be used and it will help you to save money, of course. Some negotiation might have to be done with lending bank for using these techniques if they're not explicitly permitted by your loan contract. Let’s check out some of these options.
A good option for paying your mortgage off quicker is increasing your regular payments. Even if you opt to pay a very small additional amount every month, you'll be able to save good amount of your time and money. Suppose, your mortgage amounts to $150,000 which you have to amortize over a term of 25 years, bearing 5.45 percent interest rate. Just pay $50 more every month and you'd be able to save $14000 while your mortgage will be paid off a couple of years sooner as well. You can use this mortgage amortization calculator for verifying this example as well.
It's another option where adding a small amount to the monthly payment will allow you to save a big amount during the term of your loan.
Take any financial institution out there, and you will find several options for payment frequency that they accept. Switch to one that allows for more frequent payments. This ensures that you will be paying more annually.
So, if your mortgage is $150,000 that has to be paid off over a term of 25 years with 6.45% interest rate, going with bi-weekly payment frequency will allow you to save almost $30,000. Here, you will be required to raise monthly payment amounts slightly here as rather than paying $850 a month you'll be making a couple of $500 payments. But again, it will save you a lot more.
Prepayment refers to paying a lump-sum amount other than the regular payments you make towards your mortgage. With prepayments, your outstanding balance is reduced and you’re allowed to quickly pay off the mortgage. Sooner prepayments mean less interest accrued on your mortgage over the loan term and also it will be paid off sooner as well.
This mortgage amortization calculator, as mentioned earlier, can help you determine the schedule of your mortgage with a given set of inputs. It requires you to enter your home price, down payment, loan term, and interest rate. Besides, there are some optional input values as well like property taxes, PMI Insurance, Home Insurance, HOA Fee, Start Date and any other costs that may be involved.
When you hit the calculate button on the mortgage amortization calculator, you will get the values for monthly payment, down payment, total of your mortgage payments that will be made over the term of the loan, total interest and the mortgage payoff date.
Besides, there is a complete schedule of your mortgage payments shown for the entire term of your loan. It includes yearly beginning balance, interest amount, principal amount and the ending balance.
So, use this mortgage amortization calculator and determine how your mortgage payments will go for the entire term.