Mortgage Calculator Amortization Schedule

Compare Monthly vs. Bi-weekly

Home Loan Amortization Calculator

The home loan amortization calculator is useful for any homebuyer who is looking to buy a house and want to see how much they will be paying per month for their mortgage.

Homebuyers can also learn how much the mortgage costs at the end of their term, and the total interest payments.

For a simple loan calculator without the optional fields related to housing, use the amortization calculator.

Mortgage Amortization Schedule Excel

Borrowers can view the mortgage amortization schedule monthly or annually, and has the ability to see how much they can save with biweekly payment against monthly payment.

What Is Mortgage Amortization?

Mortgage amortization is a loan paydown process for a home mortgage. When borrowers financed the purchase of their house with a mortgage, the lender creates a mortgage amortization schedule that shows how the borrower is going to pay back the lender.

On a fixed interest rate mortgage, the monthly payment stays the same over the course of the loan whereas the monthly payment changes for a mortgage with an adjustable interest rate.

At the beginning of the term, the majority of the monthly payment goes towards the interest and little for principal payments. The balance between the interest and principal starts to shift after a few years of consistent payments. In later years, most of the monthly payments go towards principal payments until the mortgage is paid off.

Mortgage Calculator With Extra Payments

To pay off a mortgage earlier and save money in interest, many borrowers choose to make extra payments.

With each extra payment, the borrower reduces the mortgage balance. Since interest is calculated based on the balance, when the debt is reduced, the borrower would pay less in interest payments and save on the overall costs of the loan.

The monthly payments will still be the same for mortgages with fixed interest rates. However, the shift between principal and interest will begin to accelerate with extra payments. Therefore, borrowers who make extra payments may be able to pay off their home mortgage years earlier.

Our mortgage calculator with extra payments will show a borrower exactly how much they can save with extra payments.

Let's say the borrower is able to increase his monthly payment by $400, or around 15%.

As we can see from this example, with a 15% increase in the monthly payment, the borrower would pay off his mortgage almost 9 years earlier, and interest savings of $121,472.74 which is close to 26%.

Mortgage Calculator With Taxes and Insurance

There are additional costs to owning a home such as property tax and insurance. The property tax depends on the size of your home and the location. It varies from state to state, and city to city. Many cities with good school districts spend a good portion of property taxes on education, therefore property taxes in these cities will be much higher than in other cities.

Home insurance is also required for homeowners. The costs of home insurance depend on the coverage and they vary greatly by state. If you live in a flood zone, chances are you will need to pay coverage for flooding. Also if you are in a city where there is a higher risk of natural disasters, then you will pay more for home insurance. If you have a pool in your backyard, you will also pay more.

The mortgage calculator with taxes and insurance gives borrowers the option to include taxes and insurance in their calculation. Users can enter the total amount of taxes and insurance or as a percentage of their home value.

Mortgage Calculator With PMI

Private mortgage insurance or PMI is an additional cost that homeowners may need to pay. When the homeowner's down payment is less than 20% in a conventional mortgage, the lender requires the homeowner to pay PMI.

The banks use PMI to protect themselves if the borrower defaults on the loan. When a borrower has low equity in their house, he is viewed as riskier to the bank. If the value of a house declines in the future, it is much easier for a borrower to walk away from his home when he doesn't have much equity in the house.

The banks make their money through interest payments, they are not in the business of foreclosing homes. Therefore, they require borrowers to pay PMI when their equity is less than 20%. The PMI will be removed only when the homeowner's equity exceeds 20% after years of payment.

Our mortgage calculator with PMI will include the costs of private insurance in the amortization schedule so that borrowers see exactly how much they need to pay each month.

Mortgage Calculator With Biweekly Payments

To speed up payments, some borrowers may choose biweekly payments for their home mortgage.

With the biweekly payment option, a borrower is essentially making 13 monthly payments instead of 12 compared to the monthly payments. One extra payment may not seem like a lot, but it does reduce interest payments and helps homeowners build equity faster in their homes, and homeowners may pay off their mortgage years earlier.

Let's use the following example to see how much one can save with biweekly payments.

If a borrower makes the biweekly payment, here's how much he would pay every two weeks and the total interest.

The biweekly payment is half the size of the monthly payment, a borrower would make 26 payments of $939.44 each year which equals 13 payments of monthly payments. The borrower would save about $60,073.88 or 18%, and pay off his mortgage 5 years earlier.

Mortgage Calculator With Amortization Schedule

The mortgage calculator with amortization schedule will show the borrower everything he needs to know, such as the principal and interest payment each period.

Users can view the monthly payment for each month or group them by year and see the yearly amortization schedule.

Borrowers can generate a simple amortization schedule with only 3 variables: the mortgage amount, interest rate, and loan terms. They can also generate an advanced mortgage amortization schedule that shows all the costs and payment schedules.

The amortization schedule also compares the monthly and biweekly payment options to see how much borrowers can save with biweekly payment plans.