How much interest can one save by paying $100.00 extra a month towards the principal on a 30 yr mortgage?

Answer 1

Try the loan calculator link below.

Answer 2

My husband and I started our mortgage at 30 yrs. A year later refinanced to 20 yr. Now our mortgage is at 15 yrs. It should be paid within 12 yrs. We found out we save a whole bunch by paying bi-weekly and not monthly, that way there would be one whole payment extra in a year. This saves thousands of dollars in interest during the mortgage period. Trust me you will save money and finish a lot faster. Who wants to pay mortgage for 30 yrs? Yes at first you might think you can't afford to pay an extra payment, but you are making a VERY WISE decision in putting $100 extra on your principal. I can not tell you exactly how much money you will save cause I do not know how much your mortgage balance is, but I promise you will save thousands. ;) GOOD LUCK.

Answer 3

No one here can tell you without knowing your loan specifics (loan amount, interest rate, terms).

If you have Quicken, punch in the numbers in the debt reduction planner and it'll tell you.

You might consider refinancing to a 15-year mortgage. When we did, out interest rate went down and the payment went up only slightly (like, $10). We pay an extra amount each month (round up to the next hundred), so we can pay it off even faster.

You could also consider paying every four weeks, instead of monthly. That way, you make 13 payments every year and can pay off a 30-year mortgage in about 21.5 years (a 15-year mortgage will be about 10 years).

Answer 4

The answer varies depending on the principal and interest rates, of course. But it's HUGE. I just checked, and Quicken's Debt Reduction Planner tells me that if I keep to the plan I'm on at the moment, I will save something like $80,000 and more important, be debt-free -- yes, including paying off my mortgage -- in 2015 instead of 2032. That's a difference of SEVENTEEN YEARS.

The basic principle, by the way, is simple: Total all your debt payments, then figure out an amount you can add to the debt with the highest INTEREST rate. Pay down that debt as quickly as possible, then put its monthly payment with the overage toward the NEXT highest rate, then put all that overage toward the NEXT one, and so on.

Here's an example. Let's say (I'm using easy numbers) that you have the following debts:

1st mortgage $1000 at 7.5%
2nd mortgage 300 at 9.5%
Charge card 35 at 27%
Charge card 65 at 19%

Now let's say that you figure that you can put an additional $100 a month toward getting out of debt. Here's what you do:

1. Pay your 27% card $135 a month (that's the $35 minimum plus the $100 you can spare) till it's zero -- then tear up that card. (Of course, you pay the minimum on your other debts, on time.)

2. Pay your 19% card $200 a month (that's the $65 minimum plus the $135 from the other card) till it's zero -- then tear up THAT card. (Continue paying the minimum, on time, on your other debts.)

3. Pay your second mortgage $500 a month (that's $300 plus the $200 freed up because you don't have the two charge cards) till it's zero. Pay the $1000 first on time.

4. Pay your first mortgage $1500 a month till you own your house in a LOT fewer than 30 years.

The numbers are ASTOUNDING. If you have a copy of Quicken or some other personal finance software, look for the Debt Reduction Planner and fill it out. Use your real numbers, make it as accurate as you can, figure out how much extra you can throw at the debts one by one, and prepare to be amazed.

What surprised me: it's better to do this -- that is, to pay down your highest-interest debts first while making minimum payments to your other debts -- than it is to pay, say, $25 a month extra to each of those four debts. True, you don't start paying down your first till you've cleared the others, but once you do, you start paying it down MUCH MUCH faster.

Answer 5

This is all relative to the loan size, econimies of scale come in play base of amount you owe. You can go online and they have mortgage calculators to show this, you would be surpise on how fast you can pay down a loan and once again, it varies from say a 50k loan to a 350k loan, but no matter it is a big savings on interest.

Answer 6

on a 30 year loan, you can generally pay off the entire amount if you pay a couple of extra payments each year towards your balance. if you were to make an additional 3-4 payments per year, you would essentially be able to pay off your balance in aroundn 15-17 years. forget the nickel and dime sh*it since it really won't help you out all that much. if you can manage to pay additional payments per year then that will cut your repayment period by nearly half. assuming that is you don't have any prepayment penalties on your mortgage.

Answer 7

I use Microsoft Excel and it has a Loan Amortization Table that you input your information. It will tell you how much you can save over the life of the loan if you pay extra each month. You can find it in the general templates of Excel.

Answer 8

Go to www.bankrate.com and check their mortgage calculators. They let you adjust for extra payments, different interest rates, and longer/shorter term loans.

Answer 9

Contact the mortgage holder.

Answer 10

It depends on the loan amount, intrest rate and the way the intrest is calculated.