Creating an amortization schedule is easiest with a calculator, as it handles the calculations for you. Here’s the information you’ll need to input:

– Starting Loan Amount: Use the original loan amount if you already have a mortgage. If you’re purchasing a new home and making a down payment, subtract the down payment from the total loan amount.

– Interest Rate: Enter your current interest rate if you have an existing mortgage. For a new home purchase, you can use today’s rate as an estimate.

– Loan Term: The typical mortgage term is 30 years, which generally offers lower monthly payments. However, you can also explore shorter terms, such as 15 years.

– Loan Start Date: If you’re unsure of the exact date, an estimate is acceptable, though results may be less precise.

Click ‘Calculate,’ and you’ll receive an amortization schedule showing how each payment affects the loan balance and how much goes toward interest.

The impact of extra payments on your mortgage depends on the amount and frequency of those payments. Even just one additional payment per year can significantly reduce your loan term. For a 30-year mortgage, making one extra payment annually can cut up to 5 years off the loan!

Use our amortization calculator to experiment with different extra payment amounts and see how they affect your loan payoff and interest savings.

Prepaying your mortgage involves making extra payments that go toward reducing the principal balance. This approach is advantageous for several reasons:

– It decreases the total interest paid over the life of the loan.
– It allows you to pay off your mortgage more quickly.
– It helps you build equity faster (equity is the difference between your home’s value and your loan balance).

With Mortgage Door, you won’t incur any fees for paying off your loan early.