Department of Labor Federal Credit Union

Should I Make Extra Payments on My Mortgage?

By making extra payments on your mortgage you could build equity faster and reduce your amortization period, resulting in paying off your mortgage sooner, paying less interest overall and becoming an attractive risk for lenders. Use this calculator to find out if you should consider making extra payments on your mortgage.

Mortgage Information

Loan Amount:
Mortgage Type:
Mortgage Term (Years):
Interest Rate:
Property Value:

Yearly Property Taxes:
Yearly Property Insurance:
Extra Monthly Payment:
Number of Payments Made:

Loan Amount

Enter the loan amount of your mortgage.

Mortgage Term

Enter the term of your mortgage in years.

Interest Rate

Enter the annual interest rate of your mortgage.

Extra Monthly Payment

Enter the extra payment amount you plan to make. The calculation assumes that you will make the same extra payment every month for the life of the loan.

Number of Payments Made

Enter the number of you have already made on the mortgage. If the mortgage is new enter 1. If you've made one year of payments enter 12.

Yearly Property Taxes

Enter your estimated yearly property taxes for this mortgage. Property taxes are usually calculated as a percentage of your home's assessed value. For example, if you pay 0.5% in property taxes of the assessed value, a home assessed at $270,000 would have a yearly property tax bill of $1,350.

Yearly Property Insurance

Enter your estimated property insurance. Lenders require that you carry home owners insurance on the property to protect their investment should a catastrophic accident occur.

Property Value

Enter the value of your property. This value is used to determine if you need to pay mortgage insurance. Lenders require mortgage insurance if your loan to value ratio is less than 20%.

Results Information

Department of Labor Federal Credit Union

Serving employees and contractors who work for the Department of Labor, their families and associated organizations. See website for details.

200 Constitution Ave
Rm S-3220
Washington, DC 20210-0001
(202) 789-2901

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