You can use the Mortgage Calculator below to determine what your Mortgage Payment will be (Principle & Interest only) based on a Loan Amount…Or…You can enter a Monthly Payment and see what the corresponding Loan Amount will be. In either case, enter an Interest Rate as well as the Term of the Loan (expressed in months – for example: 360 months = 30 years). You’ll also see an Amortization Chart that shows you how much of each payment goes to the Principle and Interest.
The Amortization Chart is interesting because it shows how the portion of the Monthly Payment that goes to the Principle Balance, as well as the Interest, changes over the course of the Loan Term. In the beginning of the Loan the majority of the Payment each month goes toward paying Interest…but over time more and more of the Monthly Payment gets applied to reducing the Loan Balance (or Principle). In light of this, it becomes clear that by paying “additional funds” each month specifically toward the Principle it’s possible to cut years off of your Loan which in turn can save you a substantial amount of money in Interest charges. In the end, this is the primary objective with any Loan…to pay it off. At the same time that the Loan is being “paid down”, it’s reasonable to imagine that the Home Value is increasing. So the benefits of paying a Mortgage off are multi-faceted…you are increasing your Equity in the Home and eventually (when you’ve paid it off) reducing your Monthly “Cost of Living” by eliminating what is generally considered to be a person’s biggest expense…their Monthly Housing Cost. Feel free to contact a Representative at New Horizon Mortgage Concepts to have them illustrate how much money you could potentially save by implementing an “Accelerated Payment Program”.