Mortgage Acceleration Example
- Review our Comprehensive Mortgage Acceleration Overview
- Use our
MORTGAGE ACCELERATION CALCULATOR
to calculate the savings from accelerating your mortgage
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
- Principal
- Interest
- Mortgage Balance
- $22,000 $400,000
- $18,000
- $14,000$300,000
- $12,000
- $10,000$200,000
- $6.000
- $2,000$100,000
-
Year 1
$373,308 15,078 6,692 -
Year 2
$366,344 14,805 6,964 -
Year 3
$359,096 14,521 7,248 -
Year 4
$351,553 14,226 7,543 -
Year 5
$343,702 13,919 7,851 -
Year 6
$335,532 13,599 8,170 -
Year 7
$327,029 13,266 8,503 -
Year 8
$318,179 12,919 8,850 -
Year 9
$308,969 12,559 9,210 -
Year 10
$299,383 12,184 9,586 -
Year 11
$289,407 11,793 9,976 -
Year 12
$279,024 11,387 10,383 -
Year 13
$268,218 10,964 10,806 -
Year 14
$256,972 10,523 11,246 -
Year 15
$245,268 10,065 11,704 -
Year 16
$233,087 9,588 12,181 -
Year 17
$220,410 9,092 12,677 -
Year 18
$207,216 8,576 13,194 -
Year 19
$193,485 8,038 13,731 -
Year 20
$179,194 7,479 14,291 -
Year 21
$164,321 6,896 14,873 -
Year 22
$148,842 6,290 15,479 -
Year 23
$132,732 5,660 16,110 -
Year 24
$115,966 5,003 16,766 -
Year 25
$98,517 4,320 17,449 -
Year 26
$80,357 3,609 18,160 -
Year 27
$61,457 2,869 18,900 -
Year 28
$41,787 2,099 19,670 -
Year 29
$21,316 1,298 20,471 -
Year 30
$0 454 21,316
Accelerated Fixed Rate Mortgage Amortization Schedule
- Principal
- Interest
- Mortgage Balance
- $22,000 $400,000
- $18,000
- $14,000$300,000
- $12,000
- $10,000$200,000
- $6.000
- $2,000$100,000
-
Year 1
$370,864 15,033 9,136 -
Year 2
$361,356 14,661 9,508 -
Year 3
$351,460 14,274 9,896 -
Year 4
$341,161 13,870 10,299 -
Year 5
$330,443 13,451 10,718 -
Year 6
$319,288 13,014 11,155 -
Year 7
$307,678 12,560 11,610 -
Year 8
$295,595 12,087 12,083 -
Year 9
$283,020 11,594 12,575 -
Year 10
$269,933 11,082 13,087 -
Year 11
$256,313 10,549 13,620 -
Year 12
$242,138 9,994 14,175 -
Year 13
$227,385 9,416 14,753 -
Year 14
$212,031 8,815 15,354 -
Year 15
$196,051 8,190 15,980 -
Year 16
$179,420 7,539 16,631 -
Year 17
$162,112 6,861 17,308 -
Year 18
$144,099 6,156 18,013 -
Year 19
$125,352 5,422 18,747 -
Year 20
$105,841 4,658 19,511 -
Year 21
$85,535 3,863 20,306 -
Year 22
$64,402 3,036 21,133 -
Year 23
$42,408 2,175 21,994 -
Year 24
$19,517 1,279 22,891 -
Year 25
$0 343 19,517 -
Year 26
-
Year 27
-
Year 28
-
Year 29
-
Year 30
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