Paying just a little extra on your mortgage each month can have a dramatic effect
on the time it takes you to pay off your mortgage and the amount of interest you
pay over the life of the loan. This calculator is designed to show you how much
time and money — over the life of the loan — you could save by paying
an additional amount in your mortgage payment each month.
The results below show the time and money you would save by accelerating your mortgage
payments. Other popular payment options you could consider to reduce the time and
cost of your mortgage loan include making biweekly payments or making one additional
payment each year. All of these strategies can help you save money and time without
incurring the expense of refinancing. Keep in mind that not all mortgages have a
prepayment feature so you should consult with the holder of your mortgage for the
specifics of your situation.
The graph below shows the difference between paying your mortgage with the minimum required payments vs. adding the additional amount you specified to your mortgage payment each month. The more you can manage to pay each month, the faster you'll pay off your mortgage and the less interest you'll pay.
This hypothetical example is used for illustrative purposes only. Actual results will vary.
This information is not intended as tax, legal, investment, or retirement advice or recommendations, and it may not be relied on for the purpose of avoiding any federal tax penalties. You are encouraged to seek guidance from an independent tax or legal professional. The content is derived from sources believed to be accurate. Neither the information presented nor any opinion expressed constitutes a solicitation for the purchase or sale of any security.
This material was written and prepared by Broadridge Advisor Solutions.
© 2021 Broadridge Financial Solutions, Inc.