Mortgage Acceleration

Understand how you can shorten your loan term and save money by applying mortgage acceleration, or paying more than your required mortgage payment. Through a series of case studies and detailed examples we explain how mortgage acceleration works, compare different methods for overpaying your loan and highlight mortgage acceleration scams to avoid.  We also explain how to apply acceleration to an adjustable rate (ARM) or interest only mortgage to reduce your principal balance and better manage your monthly payment.  We also review how a bi-weekly mortgage works and offers financial benefits that are similar to mortgage acceleration because you make an extra payment every year, which reduces your mortgage length.  To learn more about mortgage acceleration, select a topic or calculator below.

Mortgage Acceleration Strategy
How Mortgage Acceleration Works

Review a comprehensive explanation of how mortgage acceleration works and how overpaying your loan shortens the length of your mortgage and saves you money in lower interest cost. Learn how to implement mortgage acceleration on your own at any time over the course of your loan without paying extra fees or paying for a service.  Understand how the amount you overpay your mortgage affects the number of payments and interest expense you save.

Mortgage Acceleration Example

Review a detailed example of mortgage acceleration that compares the principal and interest payments and mortgage balance for standard loan to an accelerated loan.  Includes an interactive chart that shows shows the annual benefits of mortgage acceleration as the principal balance is paid down faster, which reduces your loan term and lowers your total mortgage payments.

Monthly Acceleration Compared to Annual Acceleration

Understand how monthly mortgage acceleration, or paying more than your required payment every month, compares to annual acceleration, or making one extra payment every year.  Learn why monthly acceleration enables you to pay off your mortgage faster and save more money as compared to making a single extra payment annually.   

Mortgage Acceleration for an Adjustable Rate Mortgage (ARM)

Learn how to apply mortgage acceleration to an adjustable rate mortgage (ARM) to pay off your loan faster, lower your required monthly payment during the adjustable rate phase of the loan and reduce your total interest expense.  Because adjustable rate mortgages re-amortize every time they adjust, accelerating an ARM can lower your mortgage payment and help offset a significant increase in your interest rate.

Mortgage Acceleration for an Interest Only Mortgage

Understand how mortgage acceleration can be used to reduce the loan balance, prevent payment shock and lower the cost for an interest only mortgage.  Learn how overpaying your loan during the interest only period reduces your required payment and limits how much your payment increases when the loan starts to amortize and you are required to pay both principal and interest.  Review how accelerating an interest only mortgage can be beneficial in a rising interest rate environment.

How a Bi-Weekly Mortgage Works

Learn how a bi-weekly mortgage works including how many payments you make and how they save you money and shorten the length of your loan as compared to a monthly mortgage. Review a bi-weekly mortgage example that shows the number of payments and interest expense you save.  Includes helpful tips such as how to spot bi-weekly mortgage scams.

Mortgage Acceleration Calculators
CalculatorMortgage Acceleration Calculator

Use our Mortgage Acceleration Calculator to determine your reduction in payments and interest expense savings depending on how much and when you overpay your loan.

CalculatorInterest Only Mortgage Acceleration Calculator

Use our Interest Only Mortgage Acceleration to understand how overpaying your loan during the interest only period reduces your interest cost and loan balance.

CalculatorBi-Weekly Mortgage Calculator

Use our Bi-Weekly Mortgage Calculator to determine your loan payment, interest expense and how much sooner you pay-off your mortgage based on your loan amount and terms, including your interest rate.