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Can I pay an extra monthly car payment to speed up the pay-off, like on my mortgage?
Wiki User
∙ 13y ago
Yes, if you are paying of a car loan, there is no penalty for paying over your monthly payment. However if your monthly car payment is on a lease agreement you will have to refer to the terms of your lease as to what is allowed.
Wiki User
∙ 13y ago
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Will paying extra on mortgage principal lower monthly payment?
Generally no. If you pay extra on the principal you will pay off the loan earlier, but your monthly payment will stay the same. If you want to lower the payment, you will need to refinance. But paying extra will help you payoff your loan faster and can save significantly on the interest paid. For example, a 300,000 loan at 5% for 30 years, paying just $200 extra per month reduces the number of monthly payments by 78, or 6.50 years, and reduces the interest and total paid by $69,210.39. A significant savings to you.
How to make extra mortgage payment to principal?
Include the extra payment to your monthly payment and designate on the payment coupon the amount that is to be applied to principal. If it doesn't have a space for that, it's ok. Any additional amount you pay will be applied to principal.
A bi weekly mortgage reduces the term of a thirty year mortgage to how many years?
By making half of a monthly mortgage payment every two weeks, homeowners can save a substantial amount of money over the term of a mortgage loan. Typically, if a homeowner pays half of their monthly mortgage payment every other week, they will reduce a 30-year fixed-rate mortgage by approximately seven years. The reason is simple: instead of making 12 monthly payments, homeowners are making half a payment every two weeks, resulting in 26 half payments per year, or the equivalent of 13 monthly payments in a 12-month period. In the end, the principal is paid down a great deal faster, saving a significant amount of money on mortgage interest payments. Most banks and mortgage lenders offer bi-weekly payment options, and many even offer a weekly mortgage payment option. If you're willing to pay your mortgage bi-weekly, and your lender offers the opportunity for weekly mortgage payments, take full advantage. Does this opportunity to pay off your mortgage early sound too good to be true? Well, there is one caveat: most banks that offer the bi-weekly or weekly payment options also charge a fee to sign up, often hundreds of dollars. However, there is a way to achieve the same results without having to pay these unnecessary fees. Merely make one extra monthly mortgage payment per year or simply distribute an extra month's payment evenly throughout the year by paying down the principal each month. Most monthly mortgage statements provide an extra line for an "extra principal payment." To see exactly how much money a bi-weekly or weekly payment plan can save you over the life of your mortgage loan, an online accelerated mortgage calculator will do the figuring for you. You will be pleasantly surprised at how much time will be removed from your mortgage term.
How much does an extra payment a year knock off a 30 year mortgage?
If I send in an extra payment a year or 2 extra payments a year how much time would that knock off my 30 year mortgage?
How can I pay off mortgage fast?
You can pay off your mortgage fast by making large extra payments or paying a large extra amount with your mortgage payment. For example, a $150,000 mortgage at 5% for 30 years, paying $300 extra per month reduces the number of monthly payments by 159, or 13.25 years, and reduces the interest and total paid by $68,321.30. If you want it paid off sooner, paying $600 extra per month reduces the number of monthly payments by 218, or 18.17 years, and reduces the interest and total paid by $91,039.96.
Will paying extra on mortgage principal lower monthly payment?
Generally no. If you pay extra on the principal you will pay off the loan earlier, but your monthly payment will stay the same. If you want to lower the payment, you will need to refinance. But paying extra will help you payoff your loan faster and can save significantly on the interest paid. For example, a 300,000 loan at 5% for 30 years, paying just $200 extra per month reduces the number of monthly payments by 78, or 6.50 years, and reduces the interest and total paid by $69,210.39. A significant savings to you.
How to make extra mortgage payment to principal?
Include the extra payment to your monthly payment and designate on the payment coupon the amount that is to be applied to principal. If it doesn't have a space for that, it's ok. Any additional amount you pay will be applied to principal.
Where can I find an online monthly mortgage calculator?
An online monthly mortgage calculator can be found at: http://www.bankrate.com/calculators/mortgages/mortgage-calculator.aspx. This tool allows you to enter additional payment amounts so you can see how the extra payments will effect your balance.
Can I use a monthly payment calculator to find out how long it will take to pay off my mortgage?
A house is the largest purchase most of us will ever make so it's important to calculate what your payment will be and how much you can afford. The mortgage calculator will show you how much your monthly payment will be. It can also show the effect of adding extra payments. Watch our "How To" video on how to use the mortgage calculator.
What kind of information will I get if I use mortgage calculators?
A mortgage calculator is a good tool to use when shopping for mortgages. It is a way to compare mortgages rates so that you choose the best one for you. The other information you can get from a mortgage calculator is estimating monthly payments. You can also see how extra payments affect the payment date. Lastlly you can calculate a payoff date. This can help you plan your payments to pay off the mortgage loan early.
What would I need a mortgage amortization calculator for?
The mortgage amortization calculator is for working out your monthly mortgage payments. It will also calculate into the equation when and if you make extra monthly payments on your mortgage.
A bi weekly mortgage reduces the term of a thirty year mortgage to how many years?
By making half of a monthly mortgage payment every two weeks, homeowners can save a substantial amount of money over the term of a mortgage loan. Typically, if a homeowner pays half of their monthly mortgage payment every other week, they will reduce a 30-year fixed-rate mortgage by approximately seven years. The reason is simple: instead of making 12 monthly payments, homeowners are making half a payment every two weeks, resulting in 26 half payments per year, or the equivalent of 13 monthly payments in a 12-month period. In the end, the principal is paid down a great deal faster, saving a significant amount of money on mortgage interest payments. Most banks and mortgage lenders offer bi-weekly payment options, and many even offer a weekly mortgage payment option. If you're willing to pay your mortgage bi-weekly, and your lender offers the opportunity for weekly mortgage payments, take full advantage. Does this opportunity to pay off your mortgage early sound too good to be true? Well, there is one caveat: most banks that offer the bi-weekly or weekly payment options also charge a fee to sign up, often hundreds of dollars. However, there is a way to achieve the same results without having to pay these unnecessary fees. Merely make one extra monthly mortgage payment per year or simply distribute an extra month's payment evenly throughout the year by paying down the principal each month. Most monthly mortgage statements provide an extra line for an "extra principal payment." To see exactly how much money a bi-weekly or weekly payment plan can save you over the life of your mortgage loan, an online accelerated mortgage calculator will do the figuring for you. You will be pleasantly surprised at how much time will be removed from your mortgage term.
Reduce Costs On Mortgage Payments?
Mortgage payments are typically paid monthly, making 12 payments per year. However, if one extra payment is made each year, thousands could be saved in interest alone and the loan repayment period shortened by years. One easy way to accomplish this is by changing the frequency of payments. Instead of making one payment a month, pay half the monthly amount every two weeks. Another option is to pay a small additional amount over the monthly payment every month that equals approximately 1/12th of the monthly payment. By the end of 12 months, an extra payment will be completed.
How much does an extra payment a year knock off a 30 year mortgage?
If I send in an extra payment a year or 2 extra payments a year how much time would that knock off my 30 year mortgage?
How can I pay off mortgage fast?
You can pay off your mortgage fast by making large extra payments or paying a large extra amount with your mortgage payment. For example, a $150,000 mortgage at 5% for 30 years, paying $300 extra per month reduces the number of monthly payments by 159, or 13.25 years, and reduces the interest and total paid by $68,321.30. If you want it paid off sooner, paying $600 extra per month reduces the number of monthly payments by 218, or 18.17 years, and reduces the interest and total paid by $91,039.96.
What does a mortgage amortization calculator do?
The mortgage amortization calculator is for working out your monthly mortgage payments. It will also calculate into the equation when and if you make extra monthly payments on your mortgage. So it will help you keep track of your mortgage and let you know how things stand.
What does one need to do to pay off their mortgage early?
To pay off one's mortgage early, it can be just as simple as making a little bit of an extra payment. If one's payment is $1450 a month, rounding it up to $1500 can save a few extra months on a 30 year mortgage. For a specific example, a 200,000 mortgage at 5% for 30 years, paying just $100 extra per month reduces the number of monthly payments by 62, or 5.17 years, and reduces the interest and total paid by $37,069.03. Increasing it to $200 extra per month reduces the number of monthly payments by 104, or 8.67 years, and reduces the interest and total paid by $61,160.51.
