If you’ve ever shopped for an online mortgage, you’re familiar with how handy an easy mortgage calculator can be in helping you determine your monthly payments, the amount of interest you’ll pay over the life of the loan, and so on. But did you know that you can also use a mortgage calculator to pay your mortgage faster?
It’s easy, fun, and it could save you thousands of dollars-if you take action on what you’re about to learn!
Start by searching for an online mortgage company with an easy mortgage calculator that allows you to run calculations based on the following four values: mortgage amount, interest rate, term of loan, and payment amount.
Once you’ve found a suitable calculator for your mortgage, simply change the values for mortgage amount, interest rate, and term of loan to correspond with the values of your loan. You should be given a monthly payment amount.
Then, clear out the figures from the calculator and start over by entering the monthly payment-plus whatever amount you’d be comfortable paying beyond the minimum payment. Also type in the mortgage amount and interest rate. When the mortgage calculator returns the results, you should notice that the term of the loan is shorter.
As you’ll see, making even a small extra payment every month can save you thousands of dollars in interest over the life of the loan, and allow you to pay off your mortgage faster. This only one of the many useful ways in which you can use an easy mortgage calculator to help with your financial planning.