A financial tool designed to estimate the impact of various strategies on reducing the term of a mortgage and the total interest paid. This tool typically accepts inputs such as the original loan amount, interest rate, loan term, and any planned additional payments to project a revised repayment schedule.
Utilizing this resource enables borrowers to understand the potential financial advantages of accelerated mortgage repayment. It demonstrates how consistently contributing extra funds, even small amounts, can significantly shorten the loan lifespan and decrease overall interest expenses. Historically, such calculations were performed manually, making the process time-consuming and prone to error. The advent of digital tools has streamlined this analysis, empowering borrowers with greater control over their home financing.
