What do extra payments save you?
Lump sums and bigger regular payments cut years off a mortgage. See how many, and how much interest you keep.
Prepayment calculator
How to use it
Enter your current balance, rate, amortization and payment, then add a lump sum, a bigger regular payment, or both. The calculator shows how many years come off the mortgage and how much interest you keep.
Reading the result
Most lenders let you prepay a set share of the original principal each year, often ten to twenty percent, and increase your regular payment by a similar share, without penalty. Go past those privileges on a closed mortgage and a penalty applies, so the prepayment room in your contract matters as much as the rate. Switching to accelerated biweekly payments is the easiest prepayment of all: one extra monthly payment a year, without noticing it. Your renewal is the moment to set all of this up properly, and I compare the prepayment terms as well as the rates.
Keep reading: Mortgage renewal
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