1. What is Mortgage Payment With Extra?

This calculator helps you determine your total mortgage payment when making additional principal payments. Extra payments can significantly reduce your loan term and total interest paid.

2. How Does the Calculator Work?

The calculator uses the standard mortgage formula plus your extra payment:

Where Standard Payment is calculated as:

Where:

• \( M \) — Monthly mortgage payment
• \( P \) — Principal loan amount
• \( r \) — Monthly interest rate (annual rate divided by 12)
• \( n \) — Number of payments (loan term in years multiplied by 12)

3. Importance of Extra Payments

Details: Making extra payments toward your principal can save thousands in interest and shorten your loan term significantly. Even small additional payments can have a big impact over time.

4. Using the Calculator

Tips: Enter your loan amount, interest rate, loan term in years, and any extra payment you plan to make. The calculator will show your standard payment and total payment including the extra amount.

5. Frequently Asked Questions (FAQ)

Q1: How much can I save with extra payments?
A: Depending on your loan terms, extra payments can save 10-30% of total interest and reduce your loan term by several years.

Q2: Should I make extra payments or invest?
A: This depends on your interest rate vs. expected investment returns. Generally, if your mortgage rate is higher than expected investment returns, pay down the mortgage first.

Q3: Are there penalties for extra payments?
A: Most US mortgages allow extra payments without penalty, but check your loan terms as some may have restrictions.

Q4: Is it better to make one large extra payment or smaller regular ones?
A: Smaller regular payments have a slightly greater impact as they reduce principal sooner, but the difference is minimal.

Q5: How do I ensure my extra payment goes to principal?
A: Specify with your lender that the payment should be applied to principal, as some may default to applying it to future payments.