.calc-section { margin-bottom: 20px; }
.calc-label { display: block; font-weight: bold; margin-bottom: 5px; color: #2c3e50; }
.calc-input { width: 100%; padding: 12px; border: 1px solid #ccc; border-radius: 4px; box-sizing: border-box; font-size: 16px; margin-bottom: 10px; }
.calc-button { background-color: #0073aa; color: white; padding: 15px 20px; border: none; border-radius: 4px; cursor: pointer; width: 100%; font-size: 18px; font-weight: bold; transition: background-color 0.3s; }
.calc-button:hover { background-color: #005177; }
.calc-result { margin-top: 25px; padding: 20px; border-radius: 6px; background-color: #fff; border-left: 5px solid #0073aa; display: none; }
.result-item { display: flex; justify-content: space-between; margin-bottom: 10px; border-bottom: 1px solid #eee; padding-bottom: 5px; }
.result-value { font-weight: bold; color: #0073aa; }
.mortgage-article { margin-top: 40px; }
.mortgage-article h2 { color: #2c3e50; border-bottom: 2px solid #0073aa; padding-bottom: 10px; }
.mortgage-article h3 { color: #34495e; margin-top: 25px; }
.example-box { background: #eef7ff; padding: 15px; border-radius: 4px; margin: 15px 0; border-left: 4px solid #3498db; }
function calculateMortgagePayoff() {
var balance = parseFloat(document.getElementById('loan_balance').value);
var annualRate = parseFloat(document.getElementById('interest_rate').value);
var monthlyPayment = parseFloat(document.getElementById('monthly_payment').value);
var extraMonthly = parseFloat(document.getElementById('extra_payment').value) || 0;
if (isNaN(balance) || isNaN(annualRate) || isNaN(monthlyPayment) || balance <= 0 || annualRate <= 0 || monthlyPayment <= 0) {
alert("Please enter valid positive numbers for balance, rate, and payment.");
return;
}
var monthlyRate = (annualRate / 100) / 12;
// Check if payment covers interest
if (monthlyPayment 0 && monthsStd 0 && monthsAcc < 600) {
var interestMthAcc = tempBalanceAcc * monthlyRate;
var principalMthAcc = totalPaymentAcc – interestMthAcc;
if (tempBalanceAcc 0) output += years + " Year" + (years > 1 ? "s " : " ");
if (months > 0) output += months + " Month" + (months > 1 ? "s" : "");
return output || "0 Months";
}
Mortgage Payoff & Interest Savings Calculator
Calculate how much time and interest you can save by making extra monthly payments toward your mortgage principal.
Your Results
Time Saved:
–
Total Interest Saved:
–
Original Payoff Time:
–
New Payoff Time:
–
How Extra Mortgage Payments Save You Money
Most homeowners are surprised to learn that in the early years of a mortgage, a significant portion of their monthly payment goes toward interest rather than the principal balance. By adding even a small amount to your monthly principal payment, you effectively "skip" forward in your amortization schedule.
The Power of Compounding Interest in Reverse
Interest is calculated based on your remaining balance. When you pay down the principal faster, you reduce the base amount used for interest calculations in all subsequent months. This creates a snowball effect that can shave years off your loan term.
Realistic Example:
If you have a $300,000 loan balance at a 6.5% interest rate with 25 years remaining, your payment is roughly $2,025. By paying an extra $250 per month, you could save over $78,000 in interest and pay off your home 5 years earlier.
If you have a $300,000 loan balance at a 6.5% interest rate with 25 years remaining, your payment is roughly $2,025. By paying an extra $250 per month, you could save over $78,000 in interest and pay off your home 5 years earlier.
Key Terms to Understand
- Principal: The actual amount of money remaining on your loan.
- Interest Rate: The cost charged by the lender for borrowing the money, expressed as an annual percentage.
- Amortization: The process of paying off a debt over time through regular installments.
- Prepayment Penalty: Always check if your lender charges a fee for paying off your loan early (though rare on modern conforming loans).
Strategies for Faster Payoff
If you cannot commit to a fixed extra monthly payment, consider these alternatives:
- Bi-Weekly Payments: Pay half your monthly mortgage every two weeks. This results in 13 full payments per year instead of 12.
- Lump Sum Payments: Apply tax refunds or work bonuses directly to the principal.
- Recasting: If you make a large lump sum payment, ask your lender to "recast" the loan to lower your required monthly payment while keeping the same interest rate.