Preferred Financial Group

"We listen, we educate, then we perform like no one else in the industry."

 

Calculators

 

Select Your Amortization Period Calculator

 

Remember the amortization of a loan represents the number of equal monthly payments required to payoff the loan balance over a specified period of time. So it stands to reason that if you have a 30 year mortgage and you choose to pay it off in a period shorter than 30 years, say 25 years, you would have to increase your monthly payment. Of course, if you chose even a shorter payoff period, say 20 years, you would have to further increase your monthly payment.

Let’s view an example of what we are talking about. In "Our Example," our loan will have the following terms:

"Our Example"

Current Loan Balance
Current Interest Rate %
Current Monthly Payment
Current Remaining Term Months

Now we will determine the monthly payment required to pay off this loan in 25 years, 20 years, 15 years and 10 years and the interest you would save by shortening the term.  Here’s what it looks like:

Amortization Period
Years
Months
Monthly
Payment
Increase In
Payment
Total Interest
Paid
Total Interest
Saved
30 360 1,896.20 382,632.00
25 300 2,025.62 129.42 307,686.00 74,946.00
20 240 2,236.72 340.52 236,812.80 145,819.20
15 180 2,613.32 717.12 170,397.60 212,234.40
10 120 3,406.44 1,510.24 108,772.72 273,860.75

This calculator will allow you to determine the monthly payment required to pay off your existing mortgage for any term you desire. This might be of particular interest to you if you have begun plans for retirement in the not too distant future.

"Your Example"

Please begin by providing the following information about your current loan. Don’t be concerned about your current remaining term; we’ll calculate that for you.

  Current Loan Balance        
  Current Interest Rate     %  
  Current Monthly Payment        
  Current Remaining Term     Months  
     
     
Your results will appear here once you enter your loan information and press the Calculate button.