1. What is a Mortgage Calculator With Extra Payments and Tax?

Definition: This calculator determines your monthly mortgage payment including extra principal payments and property taxes.

Purpose: It helps homeowners understand how extra payments can reduce loan term and total interest, while accounting for property taxes.

2. How Does the Calculator Work?

The calculator uses the standard mortgage formula with additions:

Where:

• \( M \) — Total monthly payment
• \( P \) — Loan principal amount
• \( r \) — Monthly interest rate (annual rate ÷ 12)
• \( n \) — Total number of payments (term in years × 12)
• \( E \) — Extra monthly principal payment
• \( T \) — Monthly property tax (annual tax ÷ 12)

Explanation: The calculator shows how extra payments reduce principal faster, saving interest and potentially shortening the loan term.

3. Importance of Extra Payments

Details: Even small extra payments can significantly reduce total interest paid and shorten the loan term by years.

4. Using the Calculator

Tips: Enter loan amount, interest rate, term, any planned extra payments, and annual property tax. All financial values must be ≥ 0.

5. Frequently Asked Questions (FAQ)

Q1: How do extra payments affect my mortgage?
A: Extra payments directly reduce principal, which reduces future interest and may shorten your loan term.

Q2: Should I pay extra principal or invest?
A: Compare your mortgage rate to potential investment returns. Paying extra is a guaranteed return equal to your interest rate.

Q3: Are property taxes included in mortgage payments?
A: Often yes (through escrow), but we show them separately for clarity. Check with your lender.

Q4: How much can I save with extra payments?
A: Significant savings! For example, $100 extra/month on a $300,000 loan at 4% saves ~$28,000 and 4 years.

Q5: Does this account for PMI or insurance?
A: No, this calculator focuses on principal, interest, and tax. Add PMI/insurance to your extra payment amount if needed.