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Mortgage Acceleration Example
How Mortgage Acceleration Works
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# Mortgage Acceleration Example

The graphs below illustrate the mechanics of applying mortgage acceleration to a fixed rate mortgage.  The example uses a \$380,000 30 year fixed rate mortgage with a 4% interest rate.  The graph at the top of the page shows the amortization, or split between principal (dark blue bar) and interest (light blue bar), and mortgage balance (green diamond) for the mortgage with NO acceleration.  As you can see, you pay mostly interest at the beginning of the mortgage and mostly principal at the end of the mortgage and the mortgage balance is zero at the end of the mortgage, or year 30 in this example.

The graph at the bottom of the page shows the impact of the borrower accelerating his or her mortgage by \$200 per month.  As illustrated by the graph, the borrower pays down the principal amount of his or her loan faster, which results in a significant reduction in the length of the mortgage, mortgage payments and interest expense.  In the acceleration example, the mortgage is paid off in year 25, as opposed to year 30, which saves the borrower more than \$55,000 in interest expense.

Use your cursor to hover over the columns on the charts to magnify the numbers.

Fixed Rate Mortgage Amortization Schedule
PrincipalInterestMortgage Balance
• \$373,308Year 1

15,078

6,692
• \$366,344Year 2

14,805

6,964
• \$359,096Year 3

14,521

7,248
• \$351,553Year 4

14,226

7,543
• \$343,702Year 5

13,919

7,851
• \$335,532Year 6

13,599

8,170
• \$327,029Year 7

13,266

8,503
• \$318,179Year 8

12,919

8,850
• \$308,969Year 9

12,559

9,210
• \$299,383Year 10

12,184

9,586
• \$289,407Year 11

11,793

9,976
• \$279,024Year 12

11,387

10,383
• \$268,218Year 13

10,964

10,806
• \$256,972Year 14

10,523

11,246
• \$245,268Year 15

10,065

11,704
• \$233,087Year 16

9,588

12,181
• \$220,410Year 17

9,092

12,677
• \$207,216Year 18

8,576

13,194
• \$193,485Year 19

8,038

13,731
• \$179,194Year 20

7,479

14,291
• \$164,321Year 21

6,896

14,873
• \$148,842Year 22

6,290

15,479
• \$132,732Year 23

5,660

16,110
• \$115,966Year 24

5,003

16,766
• \$98,517Year 25

4,320

17,449
• \$80,357Year 26

3,609

18,160
• \$61,457Year 27

2,869

18,900
• \$41,787Year 28

2,099

19,670
• \$21,316Year 29

1,298

20,471
• \$0Year 30

454

21,316
In the acceleration case (below), the mortgage is paid off in year 25, saving the borrower at least \$55,000 in interest expense
Accelerated Fixed Rate Mortgage Amortization Schedule
PrincipalInterestMortgage Balance
• \$370,864Year 1

15,033

9,136
• \$361,356Year 2

14,661

9,508
• \$351,460Year 3

14,274

9,896
• \$341,161Year 4

13,870

10,299
• \$330,443Year 5

13,451

10,718
• \$319,288Year 6

13,014

11,115
• \$307,678Year 7

12,560

11,610
• \$295,595Year 8

12,087

12,083
• \$283,020Year 9

11,594

12,575
• \$269,993Year 10

11,082

13,087
• \$256,313Year 11

10,549

13,620
• \$242,138Year 12

9,994

14,175
• \$227,385Year 13

9,416

14,753
• \$212,031Year 14

8,815

15,354
• \$196,051Year 15

8,190

15,980
• \$179,420Year 16

7,539

16,631
• \$162,112Year 17

6,861

17,308
• \$144,099Year 18

6,156

18,013
• \$125,352Year 19

5,422

18,747
• \$105,841Year 20

4,658

19,511
• \$85,535Year 21

3,863

20,306
• \$64,402Year 22

3,036

21,133
• \$42,408Year 23

2,175

21,994
• \$19,517Year 24

1,279

22,891
• \$0Year 25

343

19,517
• Year 26
• Year 27
• Year 28
• Year 29
• Year 30
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Current Refinance Mortgage Rates in Ashburn, Virginia as of August 14, 2024
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Rate data provided by RateUpdate.com. Displayed by ICB, a division of Mortgage Research Center, NMLS #1907, Equal Housing Opportunity. Payments do not include taxes, insurance premiums or private mortgage insurance if applicable. Actual payments will be greater with taxes and insurance included. Read through our lender table disclaimer for more information on rates and product details.