X

How much will I save by prepaying my mortgage?

Q: I have 13 years left on a 15 year loan at 4.375% with a balance of $78,100. How much time would I knock off of the mortage if I pay an additonal half of the payment on the 15th of each month and is the better than just paying one extra payment a year via extra principal each month?

A: With a fairly small loan amount and a short loan term you already have paid for several years, it will be hard to obtain substantial savings or term shortening by switching to a bi-weekly payment. You can do complex prepayments using our Homebuyer's Calculator Suite; we reverse-engineered your numbers to determine that you started two years ago with about an $87,000 loan, and starting to make one extra payment per year with next month's payment, you'll shorten the total loan term by about 16 months, saving about $2,810 in interest charges.

Ask the expert
Keith Gumbinger
Keith Gumbinger
Mortgage Expert
Vice President, HSH.com
About Keith: Mortgage market observer and analyst with 35 years experience... (more)
Submitting your question...

Question received! Check back later to see if your
question gets published.

Q: We just sold our house. When do we have to pay the IRS?
JAN 20, 2021
A:

Capital gains taxes as they apply to your principal residence can be found in IRS Publication 523.

Read More
Q: How do I find out who owns my mortgage?
MAR 15, 2021
A:

The owner of the loan is most often the "investor" -- the entity who put up the actual funds to make your mortgage happen.

Read More
Q: Does mortgage insurance assist the survivors of a deceased policy holder?
JAN 20, 2021
A:

Credit life insurance is sold to homeowners as a means to pay off the mortgage in the event of the death of the homeowner.

Read More
Add to Homescreen?
X
X
Install this web app on your phone :tap and then Add to homescreen