Adding an extra yearly payment can shorten your mortgage term up to ten years. Extra payments can also significantly lower your interest payments. A real estate calculator can give an estimate on the savings extra yearly payments will create, helping you decide whether or not such payments would be worthwhile. However, it is possible that your mortgage may have prepayment penalties that will cause you to be fined if your mortgage is repaid early. If you think extra yearly payments would be beneficial, contact your lender to make sure there are no prepayment penalties or to add extra payments into your mortgage plan.
Real estate calculators provide you with a table showing the breakdown of your monthly payments. A percentage will go to interest and the remainder will be put to the principal balance, or the original amount of the loan. The table shows that in the beginning of your repayment schedule, most of your monthly payment is paid to interest and a lesser amount to principal. Year by year the amount paid to interest will lessen until almost all of the payment is of your principal balance. It is important to understand how interest and your interest rate will effect your loan and a real estate calculator will help you gain a realistic perspective.
Real estate calculators can help you understand more about mortgages and the amortization of mortgages. Use our real estate calculator to plan your mortgage or fill out our free short form to contact up to four lenders about your new home.
If you are in the market for a new home, a real estate calculator may give you valuable information to use when making decisions about the mortgage you will need to finance such a large purchase. A real estate calculator will give you an estimated monthly payment, along with a schedule showing interest and principal payments. A calculator can also give you estimates on the amount of interest you will pay yearly and in total. Use our real estate calculator to explore mortgage terms or fill out our free short form to contact up to four lenders about your new mortgage.