Mortgage Payment Calculator: Fill & Download for Free

Home buyers can save literally thousands of dollars easily and simply when repaying mortgage loans.But most buyers do not make use of the extra repayment option, which results in a mistake of paying thousands of dollars in unnecessary interest over the life of the loan.What is extra repayment?Extra repayment is paying a few hundred dollars more on top of the monthly mortgage payment. The result is automatic savings of thousands of dollars over the life of the loan.Example:A 30 year fixed loan at 3.5% = monthly mortgage payment of $1,571.66. Total cost of the loan = $565,796.31An extra repayment of $200 on top of the monthly mortgage payment = $1,771.66. Interest saved = $40,370.79. Updated loan term = 24 years, 10 months. Total cost of the loan = $525,425.51.An extra repayment of $250 on top of the monthly mortgage payment = $1,821.66. Interest saved = $47,997.28. Updated loan term = 23 years, 10 months. Total cost of the loan = $517,799.02.An extra repayment of $300 on top of the monthly mortgage payment = $1,871.66. Interest saved = $54,920.16. Updated loan term = 22 years, 11 months. Total cost of the loan = $510,876.15.How is extra repayment set up?An agreement and contract for extra repayment is set up with the lender.There must be NO prepayment penalty.The home buyer informs the lender the set amount the buyer will be repaying extra every month for the life of the loan, and the monthly extra repayment amount must be written into the contract. So, the home buyer sets the extra monthly dollar amount. The lender will bill monthly.Simple.Bonus tip #1:For home buyers who have excellent credit reports, there is a premier repayment option of Extra repayment of principal only.How Extra Repayment of Principal Only works:On top of the monthly mortgage payment the home buyer pays an additional amount that goes toward the repayment of principal only.This additional amount that goes toward the repayment of principal only is shockingly small, sometimes about a hundred dollars or less; depending on the size of the loan.It will also cut the amount due on the loan by a huge number since most of the total amount of the loan comes from interest.The bank will calculate how much the principal amount is to be added to the set monthly mortgage payment.Bonus tip #2:There are free mortgage loan calculators available online.Example: Plan a Better Mortgage Extra RepaymentsUsing these tools will take the mystery out of borrowing money and can circumvent costly mistakes.The home buyer can save thousands of dollars while handling the monthly payments with ease. Knowledge can give the home buyer peace of mind.

Initially there wasn’t much of a feeling, more like “ok, cool…that’s done”. My wife called the mortgage company to find out what a payoff could be if she came in that day, and wrote the check for around $20,000. When I came home that day she mentioned she paid it off and that was that. There wasn’t really any excitement - at that point…..I will tell you what DID get exciting, but first I want to touch on an important point of paying off your mortgage.From 2002 to 2007 we focused hard on paying off all debts, including the house. Our small business was doing well, but we would just take extra money and pay off the mortgage. We didn’t really increase our lifestyle.The interesting thing about paying off your mortgage is that while you are paying off your mortgage, even if you make a big payment in a single month—let say 2X, 3X, or 5X your regular payment — the next month, that same mortgage payment is still due. In other words, you take all this money that would be fun to spend on something else like a cool car, or cool vacation, and it just goes to the mortgage company and next month the same payment is still due. That isn’t much fun.BUT…what did keep me going was seeing each month how much less we were paying in INTEREST! Seeing the dollars paid in interest vs principal go down and down and down was FUN - and exciting!! Our payment was about $2,200/month (we paid our taxes separately). We went from a 30 year mortgage, refinanced to a 15 year mortgage, and then got aggressive paying it off. We went from $1,500/month in interest, down to $1,000/month in interest (getting under $1,000 was exciting!) down to $100/month in interest, and then of course just paying it off entirely. Seeing the interest go down was AMAZING.I realize on paper, the math for paying off a mortgage doesn’t make sense: our interest rate was 4% on a 15 year fixed rate mortgage back then - so any numbers person would tell me I was insane to pay that off because I could put that money into other investments and do much better, especially when you factor in inflation and the tax deduction. I get all that but I wasn’t interested to stay in debt. Payments totally suck and reduce your confidence to take risks in life.Remember earlier when I said initially when paying off the mortgage I didn’t feel much and it was more of “well, we got that done” - this is true. Let me tell you what happened 6 months and beyond……we became wealthy.I COULD NOT BELIEVE HOW FAST WEALTH PILED UP WITHOUT PAYMENTS!Imagine that…thousands of dollars a month which used to go to a mortgage payment were just pilling up in our savings account. In no time at all we had 6 figures in cash savings. I was maxing all my tax deferred options (Simple IRA, Roth IRA, ect) but beyond that I was seeing all this cash pile up. We remained pretty frugal still (driving Honda Civic and Toyota Camry), in our house was worth around $260,000 or so. But I realized I needed to get up to speed on investing our money outside those tax deferred accounts - which over time I got educated on. After paying off our mortgage in 2007 we stayed in that modest host for another 6 years and in 2013, we moved into our dream house - a beautiful big 5 year old home in a great neighborhood with fantastic public schools. The elementary school is 4 houses from ours. The well regarded high school is a 10 minute walk from our house.We paid CASH for our dream house - but not immediately….We did have the cash to buy our dream house outright, and that was the plan, but our bank took notice of all the money and investments we had saved up and said…’You need to get into a mortgage and invest the money with us!!’ We can get you a 2.6% interest rate! (and they did!)’So, I tried it out.I HATED HAVING MORTGAGE PAYMENTS AGAIN! HATED IT…HATED IT…HATED IT.After 2 years, even with a 2.6% interest rate, we went in and paid off the mortgage. We also eventually moved our investments from the bank as well. They meant well, and didn’t do anything wrong, but I learned full well how much I hated payments and will never go back.In 2019, we take 3 very nice family vacation each year. I bought my dream car - a 2016 Porsche Panamera GTS that sounds and drives amazing. My wife has a nice 2017 Audi Q7.We have fully funded our kid college funds. That’s done. And putting money into that each month ALSO felt like a payment - so I “paid that off” as soon as I was able to.We continue to save.Having no mortgage and no payments has allowed me some key things:A relaxed peace of mind overall.To take thoughtful calculated risks with my career and investments that if I had had debt, I might have passed on, and lost some opportunities.To take a more relaxed attitude with investments. I don’t feel a need to swing for the fences or “make up ground” for retirement savings. I’m very happy with our position and we could retire now if we wanted (but I LOVE WHAT I DO!).Once you become debt free and pay off your mortgage, your cash will build fast. Invest it and get it compounding! I highly recommend Vanguard’s Target Retirement Funds.Last note— after paying off the kids college fund it hit me: my wife and I can REALLY REALLY REALLY do anything we want. What’s next? I don’t know. I’m very content and have no interest to stop working. For us, more than likely, the next chapter will be about giving back in a BIG WAY.

The safe rule is this. Your monthly mortgage payment should never be more than 25% of your take-home pay, less if possible.I like to include home insurance and property taxes in this monthly payment calculation because that's all part of owning a home unless you live in states where there is no property tax.So if you're gross pay is $120k per year, your net take home income is probably around $90k. That's about $7,500 per month.25% of $7,500 is: $1,875So don't exceed $1,875 in your monthly payment for a house.So how much house can you afford? Depends on property taxes, how much money you have to put down, and cost of home insurance. I'll give you a standard cost breakdown of an example in PA.EXAMPLE PURCHASE:- $300,000 home purchase price- 5% ($15,000) down payment- $285,000 would be your loan amount30 YEAR MORTGAGE EXAMPLE- $285,000 on principle- 4% interest- $5,000/yr. for property taxes- $500 for home insuranceMonthly payment would be: $1,818.97Based on the above, you could afford a $300,000 home. As you can see, there are tons of variables (down payment & property taxes) to factor in to make a good decision. Also remember, it's best to live below your means, because you never know when you might lose your job.Also, be aware, some homes have "association fees", so that needs to be factored in as well. It really depends where you want to live.