Paying off faster
This calculator shows you how much you need to pay to extinguish a mortgage over various length of time. Obviously, the more you increase your repayment amount, the shorter it will be to become mortgage-free. Even when mortgage interest rates are relatively low, the amount of mortgage interest you pay over a very long period can actually be very large. If you repay monthly over 30 years, you will pay as much interest as in principal when the interest rate is 5.3%. It is not as fierce at lower interest rates, but it is still huge. The most effective way to 'save' interest costs is to reduce the term - that is much more effective that shaving a bit off the rate. This calculator shows how much you will pay for each of six set terms, from 5 years to 30 years, and how much you will need to pay with each repayment to achieve these goals.