Paying a mortgage off early can considerably decrease the overall number of interest. In addition, it provides the satisfaction of possessing his house free and clear to the borrower. A 20-yr mortgage loan could be paid off early by submitting additional principal payments along with your normal monthly mortgage repayments.

Use a web-based mortgage calculator. Many fiscal sites have mortgage calculators; the one on Bankrate.com is user friendly.

Put in your loan information and compute mortgage amortization and the monthly payment. For instance, a $300,000 mortgage with a speed of 5.5% and a 20-year amortization has a monthly payment of $2,063.66. Select the “display amortization” button to view the amortization table.

Figure out the number of additional principal needed to pay your mortgage off five years. Attempt numbers that are different in the additional payments cartons and re-calculate the amortization the mortgage is paid off in 180 repayments or before the final payment day is 1-5 years out. On the instance loan, including $380 monthly takes care of the mortgage in 15 years.