A Mortgage Overpayment Calculator Can Help

Just what is a mortgage overpayment calculator and what can it do for you?

It simply calculates how many years you can knock off your mortgage and how much cash you can save by making overpayments each month.

If your monthly payments are five hundred then try paying five fifty or six hundred. You’d be surprised at the results later.

The average mortgage falls over twenty five years and paying a bit extra each month will really mount up over the period of the mortgage.

You cannot fail to save at least some time if you can afford to pay just a little more each month.

And you get to save a lump of cash as well as you aren’t paying as much interest over the 25 year period.

To show you how it works we can use 100,000 mortgage over 25 years and paying back at 5% interest.

Usual payments each month are 580. If you paid an extra 100 each month you would save quite a sum.

Making these extra payments would see the mortgage finished in just over 18 years. That’s more than 6 years knocked off.

There’s also the cash saving which would be around twenty thousand. Six years and twenty thousand saved. Very nice.

Now, I imagine you’re thinking that a saving of twenty grand isn’t that good considering you paid nearly 22 grand in overpayments in the previous 18 years.

The true benefit comes when you know that for the last 6 years you don’t have to pay anything. This is a huge saving.

If you picture not having to pay your 580 per month for the last 6 years, this turns out at another 42 grand saving.

What we’re saying here is that by paying an extra 20 grand early, instead of later you could save yourself 42 thousand.

If that sort of saving doesn’t get you heart pumping then you may well be dead, get your doctor to check you out.

Go check out a mortgage overpayment calculator and see which year you can afford to give your lender the finger!

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