Mortgage amortizacion calculator

Partial Mortgage Amortization Simulator

Fill in the following five boxes:

Outstanding capital:

Amount to amortize:

Interest:

%

Pending term:

years and months.

Total amount to pay WITHOUT partial early amortization:

Total interest to be paid WITHOUT partial early amortization:

Attention! If you only know the number of instalments but not the years and months, click here to convert number of instalments into years and months.

Monthly instalment reduction

Instalment before amortization:

New instalment:

Monthly savings:

Annual savings:

Total interest savings:

Total interest payable after amortization:

Total amount payable after amortization:

Term reduction

The monthly fee remains at:

Before amortization the number of installments is:

After amortizing the number of installments is:

Saving number of mortgage payments:

The new term is:

years and

months.

Time saving:

years and

months.

Total interest savings:

Total interest payable after amortization:

Total amount payable after amortization:

What does amortization mean?


The amortization term definition is very simple to understand. When you contract a mortgage and sign a mortgage contract, they have granted you an amount of money that you will have to pay back gradually, or if you want to understand it better, in other words, the money borrowed by the mortgage, you will have to pay it back little by little. When you make a payment on your mortgage, when you pay a monthly mortgage payment, you are making a amortization.

Amortization is the gradual repayment of a debt. The money lent by a financial institution or bank in a mortgage loan must be repaid in several small deferred payments in the time stipulated in the contract. The part of the borrowed capital that is canceled with each payment is an amortization.


But we must distinguish between ordinary amortization and extraordinary amortization. In the mortgage contract, you are set how often you will pay a little of your mortgage, that is, a repayment term. But this does not mean that you are obliged to meet deadlines. But you can make partial amortizations of the mortgage extraordinarily, when you have money saved and want to reduce your mortgage debt.


This calculator serves to know how much the mortgage payment or the remaining mortgage term will vary if you make a partial amortization of the mortgage, that is, if you contribute extraordinarily money to reduce your mortgage payment.

Amortize fee or term of a mortgage

When you make a partial amortization of the mortgage, you can usually choose between reducing the installment or reducing the term, both of which are very interesting options. Both options, reduce installment or reduce time in the partial amortization of the mortgage, have their advantages over the other.

The advantage of reducing the installment letter or installment payments on the partial amortization of the mortgage is  that you will more money to meet other needs or to save money ant  to be able to make another partial amortization of the mortgage soon. Reducing time in the partial amortization of the mortgage has the advantage that you reduce more the interest to pay for your mortgage debt, because the rule that is always fulfilled is that the less time you have a debt, the less interest you pay.

Reduction the installmentin the partial amortization of the mortgage


If you choose to reduce the mortgage payment, you should know that once the partial early amortization of the mortgage has been made, the monthly payment will be reduced. It has the advantage that you will pay less per month, and thus you will have more money to be able to save and be able to make another partial early repayment of the mortgage! Cool!


But, you have to keep in mind that with the option to reduce the installment with the partial amortization of the mortgage, you reduce the interest payment less than with the option to reduce the time or term of the mortgage.

Reduction of the term or time of the mortgage


The second option for which you can choose with that amount of money that you are going to contribute to realize an early partial amortization of the mortgage, is to reduce time or term. With this option after having made the extraordinary repayment, it will happen that you will have less time to end your mortgage debt.


In addition, with the option to reduce time, you also get to pay less interest for your outstanding debt, since the option that most reduces the amount of interest to pay for the mortgage is to reduce time or term.


However, the mortgage fee will remain as it was, you will pay the same in your monthly installment than after making the repayment, and therefore you will not have more money available to be able to save more quickly or to cope with other economic needs.


Both options in the partial amortization of the mortgage are very interesting and it is up to each and your needs to choose between one or the other option.
Here we present this calculator, so you can compare the two options and check for yourself which option, if reducing the installment or reducing time in the partial amortization of the mortgage, is the best for you.


There are three types of amortization: the French system, the German system and the US system.


The French system is used with the current partial amortization simulator calculator of the mortgage.