Enter your mortgage loan information, and calculate mortgage loan monthly payments, with extra monthly payments, and know the interest savings from extra payments.
A simple example of house price is $100,000 with a down payment of 20 percent, interest rate of 10 percent, and the mortgage loan for one year.
Mortgage value = $100,000 - (100,000 x 0.2) = $80,000
Monthly payment calculated with the PMT financial function = (80000 x 0.1 ÷12) ÷ [1 - (1 + 0.1 ÷ 12) (-12 x 1) ] = 666.67 ÷ 0.096 = $7,033.27
Total interest paid = $4,399.25
The loan term is 12 months means 12 payment
But if you add an extra monthly payment of $10,000
Monthly payment will be = The Monthly Payment + $10,000 = $17,033.27
Total interest paid = $1,958.04
Interest savings from extra payments = $2,441.22
The loan will be for 5 months, rather than 12 months.