If you want to "prepay," or add to your monthly mortgage payment to save on interest charges and pay the mortgage loan off early, you can figure that into your projected budget. Make sure there is not a prepayment penalty in the mortgage loan agreement, and the bank knows to reduce your principal with the additional money.
Not Required (Do Not Enter in Commas)
Min: 0
Max: 10000 (ten thousand)
Decimals: 0
Remarks
Adding to the principal by "prepaying" accelerates equity building. If you are
paying private mortgage insurance (PMI), this could help you reach the 20% equity
"cut-off" point faster and terminate the private mortgage insurance (PMI)
premium.
Important tip: To insure the additional payment is applied to principal, it is a good call to write two checks. On the memo portion of the second check write, "apply to principal only." This helps the person receiving the payment to differentiate between the two and acts as a receipt for your records. To see how an additional payment affects the loan, see the 30y & 15y Fun Facts to Know section at the bottom of the mortgage calculator.
Example
If you want to pay an additional $50 per month enter: 50
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