This home loan prepayment calculator helps you estimate how additional payments can help you pay off your loan faster and save on interest costs.

How Prepayment Affects Your Loan

By making extra payments towards your loan, you reduce the principal balance, which can significantly lower the amount of interest you pay over the life of the loan.

Example Calculation

For a $250,000 loan at 3.5% over 30 years, making an additional $200 payment each month can reduce your loan term by X months and save you Y dollars in interest.

Why It Matters

Making extra payments on your home loan can help you become mortgage-free sooner and reduce the total amount of interest paid over time.

Smart Strategy

Consider making extra payments if you have extra income or when you receive bonuses to help you pay off your loan faster.

FAQs

How much can I save by making extra payments? The savings will depend on the amount and frequency of your extra payments, but typically, the more you pay early on, the more you save.

Will prepayments change my loan interest rate? No, the interest rate remains the same, but the total interest paid over the life of the loan will decrease.

Home Loan Prepayment Calculator