Mortgage Prepayment Calculator Original Mortgage Balance: $ Interest Rate (%): Years Remaining: New Monthly Payment: $ function calculate() { // Get values from page var originalBalance = document.getElementById('originalBalance').value; var interestRate = document.getElementById('interestRate').value/100/12; var yearsRemaining = document.getElementById('yearsRemaining').value * 12; // Calculate months for payoff var n = Math.log(1+(originalBalance/(originalBalance-(yearlyPayment/interestRate)))) / Math.log(1+(interestRate)); if (n < 0) { n = 0; } // Calculate new monthly payment var newPayment = (originalBalance/((1-(1/(1+interestRate)^yearsRemaining))/interestRate)); if (newPayment < 0) { newPayment = 0; } // Put answers into page document.getElementById('newPayment').value = newPayment; } Understanding Mortgage Prepayment Calculators Individuals and families who are planning to take out a loan for a home purchase or for refinancing need to calculate how much they will be able to pay in terms of monthly principal and interest payments, as well as their total loan amount. A mortgage prepayment calculator is an excellent way to do this. This type of calculator allows borrowers to enter information such as the loan amount, the interest rate, and the loan term. By understanding the effects of each loan repayment method, borrowers can determine the best strategy for paying back their loan. With a mortgage prepayment calculator, a borrower can input their desired loan amount, their desired interest rate, and their desired loan term and see the monthly payment and total loan amount they will be responsible for. This helps borrowers ensure that their budget will not become too tight should their mortgage payments go up, or that the loan size does not become too large. There are several important factors to consider when using a mortgage prepayment calculator. Borrowers should understand their current loan terms and conditions, as this can help them understand the amount of prepayments they will be able to make. It is also important to understand how prepaying impacts their interest rate and the loan amount over time. By understanding the total loan amount and any fees associated with the loan, including prepayment penalties, borrowers can make a more educated decision about their loan repayment plan. Using a Mortgage Prepayment Calculator to Calculate Monthly Loan Payouts A mortgage prepayment calculator is an easy and convenient way to calculate your potential loan payments. This calculator takes into account the loan amount, the interest rate, and the loan term to help you determine the estimated monthly payments. When using a mortgage prepayment calculator, it is important to ensure you enter the most accurate information. This will help you make an informed decision regarding your loan repayment plan. When using a mortgage prepayment calculator, you should be aware of any prepayment penalties that may be associated with the loan. Prepaying your loan may result in a prepayment penalty, and this is something you should discuss with your loan provider before you make any decisions. Additionally, you should also consider any loan fees that may be associated with the loan. Borrowers should also consider any special payment discounts that may be tied to prepaying their loan. Some lenders offer special discounts and incentives for borrowers who prepay their loan on a regular basis. Understanding the terms associated with a prepayment discount can help you choose the best repayment plan for your individual loan situation. Conclusion Mortgage prepayment calculators can help borrowers figure out their estimated monthly payments and total loan amount. Borrowers should understand their current loan terms and any prepayment penalties that may be associated with their loan before making any payment decisions. Additionally, borrowers should look for any special payment discounts that may be tied to prepaying their loan. By understanding the effects of each loan repayment method, borrowers can determine the best strategy for paying back their loan.