Skip to main content Skip to footer

Mortgage Extra Payment Calculator

Should I make extra payments on my mortgage?

Additional Considerations for Making Extra Payments on a Mortgage:

Set up an automatic funds transfer on your desired date each month to stay on track with extra mortgage payments. Be realistic with your financial planning and keep additional payment amounts on track with your current income and other expenses. You may have to adjust your payment schedule based on your job and life changes, but these minor adjustments can still help you meet your financial goals.

By making extra payments on your mortgage you can build equity faster and reduce your amortization period (calculation of each regular payment on a mortgage over time), resulting in paying off your mortgage sooner, paying less interest overall, and becoming an attractive borrower to lenders. Use this calculator to determine if you should consider making extra payments on your mortgage.

Paying extra early on or during the duration of your mortgage can have a significant impact over the length of the mortgage. Some people suggest doing bi-weekly payments that coincide with pay cycles instead of twice a month which adds an extra two payments a year, but even an extra few dollars every month can make a significant impact on the overall interest payment on the mortgage.

Mortgage Information
Ready to make a payment?

We make it easy to keep up with your loan payments.

Mortgage Extra Payments Calculator Key Terms

  • Annual Property Insurance: Property insurance can help you and brings value. While TDECU highly recommends it, legally, there is no requirement for property insurance. Need help finding the right coverage? TDECU can help.
  • Annual Property Taxes: Property taxes are locally assessed taxes. Your county appraisal district appraises property located in your county, while local taxing units set tax rates and collect property taxes based on those values. For example, your tax rate is 2.03%. So, a $250,000 home would have annual property taxes of just over $5,000. Have questions about your annual property taxes? Your real estate agent may be able to help you.
  • Mortgage Type: The two main types of mortgages, ARM and Fixed-Rate have some differences. Fixed-Rate mortgages have an interest rate that is fixed throughout the term of the loan. An ARM (Adjustable-Rate Mortgage) typically has an interest rate that periodically changes, usually on an annual basis.

Have questions about terms not covered? We have a glossary with more terms for you.

Our financial calculators are provided as a free service to our Members. The information these calculators supply is from various sources based on calculations we believe to be reliable (but are not guaranteed, explicit, or implied) regarding their accuracy or applicability to your specific circumstances. All examples are hypothetical and illustrative and do not intend to provide investment advice. TDECU does not accept any liability for loss or damage whatsoever, which may be attributable to the reliance on and use of the calculators. Use of any calculator constitutes acceptance of the terms of this agreement. TDECU recommends finding a qualified professional for advice about your personal finance issues.