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Free Mortgage Calculator
A 30-year mortgage may sound daunting, but there are ways to shave time and money off your loan. You can use a great online tool called an extra principal payment calculator to see how a little extra money will help you over the life of the loan. You can find them online, mostly as a part of a more in depth mortgage calculator.
First, it’s important to understand how principal and interest work. The principal is the amount you borrow. The interest you pay is usually calculated by the year and is determined by the rate you’ve qualified for. For example, if amortized for the full term a $100,000 loan at 6% interest over 30 years will add $115,000 in interest to the loan. Amortization means spreading the fees over the life of the loan. The amount of interest you pay is determined by the amount of principal you owe. Since interest is a function of the principal, the amount of interest that you pay lowers as the principal is reduced. It is that simple.
A principal payment calculator can help you decide how to add principal payments to best fit your budget. You can add by the month, once yearly or a lump sum at a point during the loan. You simply enter the amount you can pay in the field by the frequency and the calculator will show you the time (in months) and money you stand to save. Based on the mortgage calculation above, just an extra $200 per month can shave off seventy monthly payments and nearly $16,000 in interest.
If you’re looking to pay your mortgage off early, extra principal payment calculators can help you decide which option is right for you and just how much you can save. It’s definitely worth a try.
The Free Mortgage Calculator offers interest calculators to help you with your mortgage payment. Learn about the different interest rates and loan options to make sure you save as much as you can as a home owner. | 
