The more information an amortization calculator gives you the more effective it will be. You can use this information to decide whether a longer term, a larger down payment, or an extra yearly payment is right for you. Use our amortization calculator to help you learn more about your new mortgage or apply online to contact a mortgage expert.
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Other calculators breakdown the principal and interest after every payment throughout the loan or can show that one extra yearly payment can decrease the interest paid over the life of the loan from $209,263 to $160,025 and the average monthly interest from $581 to $444.
Amortization is the process of repaying your loan through monthly payments of the principal and interest. An amortization calculator can show you what these monthly payments will be. Use our amortization calculator to get an estimate on your monthly payments or fill out our free short form to contact up to four lenders about your mortgage.
Generally, amortization calculators work on the assumption that your interest rate is fixed and also that your payments are on time and equal. Delinquent payments or adjustable rates could possibly create a large difference between the estimate and actual amount. Also, if you are making one extra payment a year, the principal balance from year to year would change drastically from the principal on a loan without such a payment and you would need to use a calculator that allows you to enter that information. Many amortization calculators allow you to enter in an extra payment per year and show how much such a payment will affect your loan. Often, one extra payment a year can cut up to ten years from your loan.