![]() Some lenders might only allow you to increase your regular mortgage payment amount. Instead, it will still be $1,500, unless you decide to make another extra payment. ![]() For example, if you double up your RBC mortgage payment from $1,500 to $3,000, you’re not required to make a $3,000 mortgage payment the next month. In most cases, the “increase your mortgage” feature does not affect your original mortgage payment amount. Going over this limit will cause mortgage penalties to apply. You can, however, make a one-time prepayment by using your annual 10% prepayment allowance. You can’t make an extra mortgage payment of over $1,500 in a given month, even if you didn’t make an extra payment the previous month. In other words, if your monthly mortgage payment is $1,500 with RBC, then you can make an extra payment of between $100 to $1,500 every month. You can also "Double Up" your regular mortgage payment, which allows you to prepay between $100 up to your regular mortgage payment amount, with this amount going directly against your mortgage's principal balance. For example, RBC allows you to make extra payments, as a mortgage prepayment, equal to 10% of your original mortgage principal amount every year. Remaining Payments: The number of payments you will make to pay off the loan.Īnnual Cost: The amount of money you will pay each year for this loan.Not all lenders allow you to make extra mortgage payments, and they may also limit the amount of extra payments that you can make each year. Total Paid: The remaining total amount of principal + interest you will pay over ‘Payoff Time’. Total Interest: The remaining total amount of interest you will pay over ‘Payoff Time’. Payoff Time: Amount of time until the loan is paid off. Savings (column): ‘Early Payoff’ compared to ‘Without Early Payoff’ saves you this much time and money. Without Early Payoff (column): The payoff time and interest charges if you pay no additional principal each month. Actual payment could include other amounts such as escrow for insurance and property taxes, private mortgage insurance (PMI), fees, and dues.Įarly Payoff (column): If you pay additional principal each month your loan or mortgage will be paid earlier than scheduled and you will pay less in interest charges. The ‘Early Payoff’ calculations assume you will pay this amount of principal and interest each month from now on until the loan or morgage is paid. New Monthly Payment: The required ‘Monthly Payment’ plus any ‘Additional Principal’ you want to pay each month. Depending on the type of loan, your actual payment may include other amounts for escrow, private mortgage insurance (PMI), fees, or property taxes.Īdditional Principal: The additional amount you will pay each month (over the required ‘Monthly Payment’ amount) to pay down the principal on your loan. This may not be the amount you write a check for each month. Monthly Payment: The principal and interest portion of each monthly payment. Interest Rate: The annual percentage rate you are paying for this loan. Loan Balance: The amount you owe on your mortgage or loan. This field is not required but may help if you have printed out several loan scenarios. Lender: The name of your potential lender. Title: A title for these calculator results that will help you identify it if you have printed out several versions of the calculator. The Early Loan Payoff Calculator is another loan payoff calculator that will help you figure out how much extra to pay each month to pay down the loan by a desired years or months. ![]() You can save a lot of interest if you pay down the loan early.This extra payment calculator is designed to tell you how much interest and time you’ll save if you know how much extra you can pay each month. An additional $50, or even $25 extra principal each month may make a surprising difference. You don’t have to pay a lot of extra each month to make a significant difference in your loan payoff time. One of the most common ways to pay down a loan early is to pay additional principal each month. ![]() (Thanks user Jeff for noticing and pointing that out!)Ī Good ‘Pay Down Loan’ Strategy is to Pay Extra Principal Every Month Accurate data to begin with gives an accurate answer. This one is smart enough to take that into consideration and use only your current balance, loan rate and payment amount. If you have, your balance will not match and your answer will not be accurate. They assume you have not made any additional payments to your principal. Almost every other loan pay off calculator out there uses initial loan amount, rate, date and term of loan. If you want to pay down a loan ahead of schedule by adding a fixed amount to each payment, this extra payment calculator will show you how much quicker you’ll reach loan pay off time and how much money you’ll save. How will my existing mortgage be affected if I make extra mortgage payments to pay down the mortgage?
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