|Original Monthly Mortgage P&I Payment:||$1,088.02|
|New Monthly Mortgage P&I Payment:||$1,304.12|
|Under Old Payment Plan:||$141,687.20|
|Under New Payment Plan:||$103,085.63|
|Interest Savings:||$ 38,601.57|
|New Length of Loan:||22 Years 7 Months|
|Time Saved:||7 Years 5 Months|
|Payments Saved:||89 Payments|
If you start to pay more toward your mortgage each month than the original payment amount, you can save a number of years on the length of your mortgage. Even the difference of just $40 can save you a couple of years on your loan term.
If you took out a mortgage loan for $250000.00 with a 3.250% interest rate, for example, you could expect to pay $1,088.02 per month. If you change your payment to $1304.12, however, you will have to pay on your mortgage for 22 year(s) and 7 month(s) instead of 30 years.