How to use a mortgage prepayment calculator

This article will be discussing the purpose of a Mortgage prepayment calculator for those who do not about its purpose. It will also be detailling how to use this piece of equipment.

Information about the mortgage prepayment calculator.

For who is this calculator for
This calculator is for borrowers who want an amortisation schedule, or want to know when their loan will pay off, and how much interest they will save if they make extra voluntary payments in addition to their required monthly payment. What this calculator does
This calculator provides amortisation schedules for mortgages, with or without additional payments. If additional payments are made, interest savings and reduction in length of loan are calculated. A user guide
Use this calculator to determine your monthly payment and amortisation schedule. The Internet will provide you with many sites where you can calculate your current mortgage settings and will provide a step-by-step guide on how to enter your details.
Most online amortisation calculators will generate an amortisation schedule for your current mortgage. Quickly see how much interest you will pay, and your principal balances. You can even determine the impact of any principal prepayments! Press the report button for a full amortisation schedule, either by year or by month.

Important jargon you need to know

Extra infomration at your disposal:
Mortgage amount
Original or expected balance for your mortgage. Interest rate
Annual interest rate for this mortgage. Amortization period
The number of years over which you will repay this loan. The most common mortgage amortisation periods are 20 years and 25 years. Mortgage payment
Your principal and interest payment (PI) per period. Accelerated weekly and bi-weekly payments
Accelerated weekly and accelerated bi-weekly payment options are calculated by taking a monthly payment schedule and assuming only four weeks in a month. Total payments
Total of all monthly payments over the full term of the mortgage. This total payment amount assumes that there are no prepayments of principal. Total interest
Total of all interest paid over the full term of the mortgage. This total interest amount assumes that there are no prepayments of principal. Prepayment type
The frequency of prepayment. The options are none, monthly, yearly and a one time payment. Prepayment amount
Amount that will be prepaid on your mortgage. This amount will be applied to the mortgage principal balance, based on the prepayment type. Start with payment
This is the payment number that your prepayments will begin with.
Savings
Total amount of interest you will save by prepaying your mortgage.