Home Purchase Mortgage Calculators
Mortgage Program Calculators
Your mortgage balance is reduced by the principal component of your monthly mortgage payment and whatever extra amount you pay above your required monthly mortgage payment. For example, if your required monthly mortgage payment is $1,500, comprised on $1,000 in interest and $500 in principal, and you make a payment of $2,500, then your mortgage balance is reduced by $1,500 ($500 in principal from your required mortgage payment and $1,000 from the extra payment). If you have an interest only mortgage, then your mortgage balance is only reduced by the amount of the extra monthly payment.
Paying more than your required mortgage payment is known as accelerating your mortgage and FREEandCLEAR offers a comprehensive overview of mortgage acceleration. In addition, you can use our MORTGAGE ACCELERATION CALCULATOR to understand how making extra payments on your mortgage can reduce the term of your mortgage and save you money on interest expense.