Pay Off Your Home Mortgage Early

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When you pay off your mortgage early, you save thousands of dollars and shorten the term of your loan. It's really a simple process. All you have to do is make extra payments on the principle of the loan.  While this is easy enough, it can be hard to understand how paying an extra $100 a month saves you money and shortens the loan. 

We have a website called MortgageProfessor.com. We offer a mortgage calculator there. First, enter the current value of your mortgage, the current balance of the mortgage, the interest rate, and how many years are left on the loan. Second, enter how much extra money you can pay each month. The final number will show you how much money you save in interest and how many years you shave off the term of the loan.


For example, you might have a $200,000 house with a 4% interest rate. Paying an extra $100 a month saves you almost $27,000 in interest and knocks five years off the term of the loan!

As you can see, making extra payments on the principle of the loan saves you time and money. If you plan on selling your house in the next 4 to 6 years, you will have built up extra equity for your next home. 

If you have any questions, give us a call or send us an email. We would be happy to help you!
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Location: Indianapolis, IN, USA