topic Paying off early in Home loans

Paying off early

srprice12 — Fri, 29 Mar 2019 01:56:08 GMT

If I was to pay $20 extra each month on a 30 year mortgage how much quicker would I pay it off?

Re: Paying off early

NCperson — Fri, 29 Mar 2019 19:39:23 GMT

it depends on the current mortgage balance, the interest rate and the remaining term.

there are plenty of website with mortgage calculators where you can determine the answer to your question

Re: Paying off early

MortgageHustler88 — Mon, 01 Apr 2019 12:16:23 GMT

Say you were to have a $150,000, 30 year Mortgage at 4.5% interest starting first payment on 4/1/2019 and you make $20 extra principal payment each month, you’ll only cut it down by 18 months, or 5% savings, but if you put down $100 extra you’ll cut off almost 7 years of your loan and save almost $30,000 in interest over the period.

Re: Paying off early

Bees — Tue, 02 Apr 2019 14:39:44 GMT

Here is an example of a calculator that adds in extra principal payments. https://www.mortgagecalculator.org/calculators/what-if-i-pay-more-calculator.php Paying extra in the first few years can really make a difference in the length of loan.