FHA Amortization Calculator Shows Extra Payment Benefits

Easy to use amortization calculator with an over pay option.

Amortization graphicIf you are considering buying a home with a Federal Housing Administration (FHA) loan, there are some important things to keep in mind. One of those things is the amortization schedule. The amortization schedule tells you how long it will take to pay off your loan. The extra payment option can help make that process go a little bit faster.

The FHA amortization calculator shows how extra payments can help you pay off your mortgage sooner. For example, let's say you purchased a home and your loan amount is $300,000 for 30 years at an interest rate of 5%. Your monthly principal and interest payment each month would be $1,610.46. 

And how much will you pay the lender over a 30-year term? You will pay back $300,000 and the total amount of interest paid to the lender would be $279,767.35. That's a lot of money!

But what if you were to add $100 to your monthly mortgage payment?

The answer is $239,830.10. The difference of $39,937.25 ($279,767.35 – $239,830.10).

By paying an extra $100 each month, you would reduce the total interest paid by $39,937.25. Making an extra payment will substantially reduce the total interest paid to the lender.

Let's get started, fill in:

The sales price of the home.
Enter the down payment.
Enter the interest rate.
Enter the loan term
Enter the start date of the mortgage
And finally, enter the extra monthly payment
You can also add a yearly lump sum payment if desired.

The amortization schedule will be displayed.  You can dismiss the amortization schedule with the "X" in the upper right corner of the amortization schedule.

What is included in a monthly mortgage payment?

Principal: This is the balance due on the loan; it is the difference between the amount borrowed and the down payment. For example, if you buy a $333,333 home and put down 10% ($33,333), the principal would be $300,000.Animated interest rate graphic

Interest: This is what you'll have to pay if you borrow money from a bank or other financial institution.

Property taxes: Annual taxes are assessed by most state and/or local governments. The yearly tax amount is divided by twelve months, and a portion of the annual cost is added to the mortgage payment.

FHA mortgage insurance: This is a fee that is included in FHA loans. You will pay an upfront premium payment at closing, and each month a little mortgage insurance will be added to your monthly payment. The monthly cost is calculated on the principal balance. As the principal is paid down, the monthly cost will also come down.

Homeowners association (HOA) fee: If you purchase a home, townhouse, or condominium that is managed by a homeowners' association, you may be required to pay monthly or annual dues to finance maintenance and enhancements to common facilities.

Rotating question markFrequently Asked Questions (FAQs)

Q: Are there any costs connected with paying off a mortgage?
A: Yes, there are. It is not necessary to incur any costs in order to pay off a mortgage. Once you have paid off your mortgage, the only expenses you will have are property taxes and homeowners insurance premiums.

In the event that you pay off all or a portion of your mortgage before the term is up, you may be charged a prepayment penalty by your lender. In the event of a prepayment penalty, you gave your assent to it when you closed on your property. It is possible that prepayment penalties will not be imposed on all mortgages in the future.

Most of the time, a prepayment penalty is assessed only if you pay off your whole mortgage balance within a specified number of years. This might be due to the sale of your home or the refinancing of your mortgage (usually three or five years).

It is possible that you will be charged a prepayment penalty if you pay off a considerable chunk of your mortgage all at once under certain conditions.

Prepayment penalties are normally avoided if you pay the increased principal on your mortgage in small amounts over time–but it's always a good idea to double-check with your lender before making any changes to your payment schedule.
SOURCE: Consumer Financial Protection Bureau

Q. Is it possible for me to make a substantial payment on my mortgage?
A. As a result, the lender or servicer will always accept an additional payment because it lowers the risk of default. The FHA amortization calculator simplifies the process of calculating the payment.

Q. Is it possible to make additional payments against the principle balance?
A. The majority of mortgage providers enable you to make additional payments on your principle if desired. It is possible to pay an additional $50 or $100 per month or make one more mortgage payment per year, for example. Using this strategy has the advantage of lowering the overall amount of interest you pay over the course of the loan's duration. Contact your servicer about extra payments.

Q. Does paying down the principal lower the amount of interest that is owed?
A. Making additional contributions to your mortgage will not result in a reduction in your monthly payment. Due to the increased principal payment, your interest payments will be reduced throughout the course of the loan's term.

Q. Is there any way for me to lower the amount of my escrow payment?
A. You will not be able to reduce the principal and interest component of your mortgage payment, but if your property taxes are escrowed, you may be able to appeal the real estate taxes. Look for a homeowner's insurance policy that is less expensive. Insured or uninsured mortgage loans are available. Speak with your lender about the possibility of having the PMI deleted or reduced.

Q. Do I receive my escrow monies back if I refinance my home?
A. In a word, yes.


In conclusion, the FHA amortization calculator can be a valuable tool for homeowners looking to save money on their mortgage. By making extra payments, you can shorten the length of your loan and reduce the amount of interest you pay over the life of the mortgage. So if you're looking for a way to reduce your monthly payments, be sure to use the FHA amortization calculator.