![]() ![]() ![]() If rates decrease, your mortgage will be paid off faster.Ī principal is the original amount of a loan or investment. This will cause your mortgage to be paid off slower than scheduled. This will reduce the amount of principal that is being paid. If interest rates rise, more of your mortgage payment will go towards interest. While the monthly mortgage payment for a variable-rate mortgage does not change, the portion going towards interest will change. On the other hand, variable-rate mortgages have a mortgage interest rate that can change. Your principal will be paid off at an increasingly faster rate as your term progresses. Fixed-rate mortgages have an interest rate that does not change. This behaviour can change depending on your mortgage type. This is why your initial monthly payment will have a larger proportion going towards interest compared to the interest payment near the end of your mortgage term. However, since your monthly mortgage payment stays the same, this means that the amount being paid towards your principal will become larger and larger over time. A smaller principal balance will result in less interest being charged. Your regular mortgage payments will stay the same for the entire length of your term, but the portions that go towards your principal balance or the interest will change over time.Īs your principal payments lower your principal balance, your mortgage will become smaller and smaller over time. For that option, check out our new Interest-Only Mortgage Calculator.When you make a mortgage payment, you are paying towards both your principal and interest. 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 cursor over any cell that has a little red triangle in the corner. 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. ![]()
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