Calculator
Extra on the mortgage vs. savings
Extra principal is a guaranteed reduction in interest you would otherwise pay the lender, at your mortgage rate. A savings account pays a rate the bank can change, and the IRS taxes the interest. Liquidity is the other side: cash in savings is still cash. Extra principal is not.
- Required principal and interest—
- With the extra—
- Time to pay off—
Does not model emergency-fund needs, prepayment penalties, or mortgage-interest deduction. Default mortgage rate is the latest Freddie Mac 30-year average. Not advice to prepay or to save.