Early Payment Savings
You'll be amazed at the amount of money that can be saved by increasing each mortgage payment. It works like this: the extra amount goes directly against the principal (amount borrowed). This means that the interest due on the next payment date is reduced. This is because you are only charged interest on the current amount due. If you keep on doing this, the principal is paid off at an accelerated rate. Therefore, your loan is payed off sooner and the amount of interest that you end up paying is a lot less. Go ahead, give it a try.
This screen is divided into two sections. Complete the top section first and click on Calculate. Then complete the lower section and click on Calculate.
You can specify a starting payment other than the first payment. You may be better able to start making additional payments in a few years.
Check with your bank or mortgage company to make sure they allow these additional payments. Also make sure you indicate that you want the payments to be applied to the principal and not to your escrow account (the account that holds the real estate taxes and home insurance payments until they are due).