Mortgage Prepayment Calculator
Calculate how mortgage prepayments can save interest and reduce your loan term with different prepayment strategies.
Original Loan Details
Prepayment Strategy
Prepayment Tips
- •Ensure you have an emergency fund before making extra payments
- •Pay off higher-interest debt first (credit cards, etc.)
- •Consider the tax deduction value of mortgage interest
- •Compare with potential investment returns
- •Consistent small payments often beat occasional large ones
About Mortgage Prepayments
How Prepayment Works
- •Extra payments go directly toward principal reduction
- •Lower principal means less interest charged each month
- •You save interest on the reduced principal amount
- •Earlier principal paydown shortens your loan term
Strategy Comparison
- •Monthly extra payments provide consistent, steady progress
- •Annual payments offer flexibility for irregular income
- •One-time payments work great for windfalls or bonuses
- •You can combine different strategies for maximum impact