Loan Calculator Amortization Table

Answer 1

Before signing the papers on your new mortgage, make sure to check out some of the loan calculators available online, and always keep your current amortization table handy. Knowing how much of your payment is going to the principle of your loan versus the interest is not only important when refinancing or making extra payments, but also is a great way to stay informed about the best use of your money.

Deciding how much "extra" to pay

One great use of an amortization table comes when you have decided to make an extra payment. Look at the amount of your payment going to principle this month. If you tack just that much extra onto your payment, you have just eliminated one month of your mortgage! Make sure that you do not have a no-prepayment penalty clause in your mortgage agreement. When making extra payments on your loan, always re-calculate with a loan calculator and ask for a new amortization table from your lender, or simply print one from a website. Paying down your mortgage early is a great use of extra income, but remember your lender does not care about how much extra you have paid if later on you cannot make a monthly payment. Make sure you have sufficient savings first, and then enjoy the feeling of paying down your loan.

Use an amortization table as a tricky way to put extra money toward your mortgage and shorten its duration!

There are probably hundreds of online tools for calculating loans and creating amortization tables. Make use of one, if only to have the information on hand. Knowing where your money goes is the most important factor, and after that you can find many tricks of manipulating your own habits to make those numbers fit in with your goals.