Mortgage Acceleration Calculator
Determine how much money you can save and how quickly you can pay-off your mortgage by accelerating your fixed rate mortgage (paying more than your required monthly mortgage payment). Understand how mortgage acceleration reduces the number of required monthly payments and lowers total interest expense over the term of the mortgage. The graph below the table illustrates how mortgage acceleration reduces the term of a mortgage and accelerates the pay-down of mortgage principal
Monthly Housing Payments
- Loan Type
What Borrower Should Know About Mortgage Acceleration
Mortgage Acceleration Basics
Accelerating your mortgage means paying more than the required monthly payment. For example, if your required monthly mortgage payment is $1,500, you make a payment of $1,700 with the extra $200 going to pay down the principal balance of your mortgage. When you accelerate your mortgage you pay off your mortgage faster which shortens the length of your loan and saves you money on total interest expense. Depending on your mortgage amount and interest rate, accelerating your mortgage by even a small amount such as $100 - $200 per month can shave years off of your mortgage and save you tens of thousands of dollars.
When You Can Accelerate Your Mortgage
Borrowers have significant flexibility over when and by how much you accelerate your mortgage. Simply add the amount by which you want to accelerate your mortgage to your monthly payment and indicate to your lender that the extra money is applied to your principal mortgage balance. You can accelerate your mortgage by $250 one month and $400 the next month and you can start and stop accelerating your mortgage at any point. So even if you are twelve years into a 30 year loan you can start accelerating your mortgage and realize the financial benefits.
Beware of Mortgage Acceleration Scams
Borrowers do not have to pay any extra fees to accelerate their mortgage. Some lenders and companies offer mortgage acceleration programs to borrowers for a fee; however, you can accelerate your loan on your own for free. Most mortgage acceleration companies and programs offer borrowers minimal value. Additionally, many of these companies have engaged in fraud in the past by not applying the extra payment amount to the borrower's mortgage balance. Borrowers should research mortgage acceleration programs very carefully and generally avoid them.
More FREEandCLEAR Mortgage Resources
Review our comprehensive explanation of how you can apply mortgage acceleration to reduce your mortgage term and save you thousands of dollars in interest expense over the life of your loan
Understand how to combine mortgage acceleration with a refinance to cut your mortgage length and interest expense without increasing your monthly mortgage payment
Compare mortgage rates and fees for leading lenders near you. Comparing multiple lenders is the best way to find the mortgage with the lowest rate and closing costs
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