simple mortgage calculator with extra payments

#Simple mortgage calculator with extra payments how to#

This results in you paying for the equivalent of 13 months of monthly mortgage payments every year. In other words, you’ll be paying every two weeks, at an amount that is slightly higher than what a normal bi-weekly payment would be. With an accelerated mortgage payment, you make a payment more frequently than the traditional monthly payment, but your payment is still based on the regular monthly amount.įor example, the payment amount for accelerated bi-weekly would be what the monthly payment amount would be, divided by 2, and paid 26 times each year. In Canada, the two main accelerated mortgage payment frequencies are accelerated bi-weekly and accelerated weekly. This means that increasing it will permanently affect your future payments, and it might not be possible to decrease it in the future.

Some lenders might only allow you to increase your regular mortgage payment amount. Instead, it will still be $1,500, unless you decide to make another extra payment.

For example, if you double up your RBC mortgage payment from $1,500 to $3,000, you’re not required to make a $3,000 mortgage payment the next month. In most cases, the “increase your mortgage” feature does not affect your original mortgage payment amount. Going over this limit will cause mortgage penalties to apply. You can, however, make a one-time prepayment by using your annual 10% prepayment allowance. You can’t make an extra mortgage payment of over $1,500 in a given month, even if you didn’t make an extra payment the previous month. In other words, if your monthly mortgage payment is $1,500 with RBC, then you can make an extra payment of between $100 to $1,500 every month. You can also 'Double Up' your regular mortgage payment, which allows you to prepay between $100 up to your regular mortgage payment amount, with this amount going directly against your mortgage's principal balance. For example, RBC allows you to make extra payments, as a mortgage prepayment, equal to 10% of your original mortgage principal amount every year. For that option, check out our new Interest-Only Mortgage Calculator.Not all lenders allow you to make extra mortgage payments, and they may also limit the amount of extra payments that you can make each year. It also doesn't work for interest-only mortgages. Note: This mortgage calculator does NOT work for so-called 'simple interest mortgages' - you'll need to try our Simple Interest Mortgage Calculator instead. Remember that if paying monthly, you can enter a fraction of a year by entering a value like =10+5/12 (for 10 years and 5 months). The second approach is to enter the current mortgage balance and adjust the term length until the PI payment matches what you are currently paying. So, if you've already been making payments for a couple of years, you can choose to have scheduled extra payments start on payment number 25. That is the simplest solution, so we've added a new feature to the Extra Payments section (at the suggestion of one of our users) that lets you specify what payment you want the extra payments to start at. The first is to enter the original loan amount and date and then make adjustments to the payment history within the Payment Schedule as needed. There are a couple of ways to analyze your existing home mortgage.

Choose when to start the scheduled extra payments.

Select a fixed-rate or variable rate mortage.

Works for both US and Canadian mortgages (via the compounding option).

Automatically calculates so-called 'Accelerated Bi-Weekly' payments.

Estimates Property Taxes and Insurance for calculation of the PITI payment.

New Features of our Home Mortgage Calculator

What will my loan balance be at the end of 3 or 5 years?.

How soon could I pay off my home if I make extra payments?.

How much might my monthly payment change over time if I have a variable-rate mortgage?.

How does the tax deduction from paying interest change over time?.

How much can I save by making extra payments?.This mortgage calculator can help you answer some of the following questions: So, if you have questions, you can hover the mouse over any cell that has a little red triangle in the corner.

#Simple mortgage calculator with extra payments how to#

Information about how to use our free home mortgage calculator and definitions of some of the terms are included as cell comments in the spreadsheet.