Comment l'utiliser
- Enter Loan amount.
- Enter Annual rate %.
- Enter Term (years).
La formule
Extra principal reduces the balance interest is charged on.
Exemple concret
An extra $200/month on a 30-year loan can save years and tens of thousands in interest.
Questions fréquentes
Where do extra payments go?
Toward principal, which shrinks future interest.
Lump sum or monthly?
Both help; monthly is steadier, a lump sum front-loads the saving.
Conseils
- Compare the total interest, not just the monthly payment.
- A larger down payment lowers both the loan and any insurance.
- Even small extra principal payments cut years off the term.
Termes clés
- Principal
- The amount borrowed, before interest.
- Amortization
- Spreading repayment into equal periodic payments.
- Escrow
- Funds held for taxes and insurance.