Getting out of debt is one of the most common financial goals people have, so if it’s one of yours, you’re definitely not alone. You may tackle your high-interest credit card debt first, then work on your other debts, like your car payment and mortgage. Because your mortgage is probably your debt with the largest balance, you can save tens of thousands of dollars if you pay off a mortgage ahead of schedule.
As you’re considering making extra payments beyond your usual principal and interest payment, one of the best tools is a
mortgage repayment calculator
that lets you see the impact of these extra payments. Here at Half A Payment, we would like to point you to our biweekly mortgage calculator, which is designed to make it easy for you to evaluate the impact of your extra payments.
Information You Will Need for our Mortgage Repayment Calculator
You’ll need to gather a little bit of data before you can use our calculator to get an accurate report of how much money you can save. In particular, you need to know your current loan balance, your current interest rate, and the number of months remaining in your loan term.
If you have just taken out your mortgage, these amounts will be the starting amounts that appear on your loan documents. Otherwise, check your most recent mortgage statement or online account portal to find the information before heading to our biweekly mortgage calculator.
Choosing an Extra Payment Amount
Although making biweekly payments will help you save thousands and take years off your mortgage repayment term, you’ll save even more if you add something extra to your regular principal and interest payment. Extra payments go straight toward reducing your principal balance, which then reduces the amount you’ll owe for interest on every payment in the future. This means you can pay off a mortgage even faster.
Take a look at your budget and determine how much extra you could contribute out of each of your biweekly paychecks. Maybe you can reduce your other expenses to make this happen, or even take on a longer shift on one day to make more money. Once you’ve selected an amount, enter it in the PaymentPlus section of our biweekly mortgage calculator to see the additional impact.
Putting Your Plan Into Action
Once you have seen how much you can save by through the mortgage repayment calculator
, it’s time to put this plan into action. Take 10 minutes to sign up with Half A Payment to deduct automatic payments from your checking account every two weeks. We’ll send these to your lender on your behalf, making it simple for you to pay more than your principal and interest payment on a regular basis. This plan is one of the easiest ways to pay off a mortgage ahead of schedule and save thousands of dollars!