Students Use Amortization Tool to Restructure Loans

By making use of this amortization tool, students are learning to save money every month by getting a clear understanding of how their student loan payments are broken down.

So you have bought your house and are just starting to make payments on it.  It feels good for a little while, but after you check how much you owe you will notice that each month the principal remaining is not really going down that much.  The fact is, at the beginning of the loan the majority of your payment is going toward paying for the interest on that loan.  As your loan ages, more of the payment will be going toward principal and less toward interest, but when will each payment seem to start making more of a dent?  You can use an amortization calculator to figure that out.  They are easy to use and the results might surprise you.

Just for those people accessing from outside the US, you should remember that this tool is not entirely accurate in these circumstances.  Also you can use a VPN or proxy to bypass these restrictions, just like in this video about which demonstrates a fast UK VPN.

Paying a little bit extra toward your mortgage each month will actually make quite a bit of difference in your loan.  Instead of taking the full 15 or 30 years you can knock that debt out quicker.  Just how much quicker will depend on how much extra you put toward the mortgage each month.  Each little bit you pay toward the principal will be that much less that is accumulating interest.  This means that your interest charges will be quite a bit less after the loan is paid off.  Even just $25 extra per month being paid on the loan will help to knock months, even years, off your mortgage.  Use the amortization calculator to determine just how much faster your loan will go away if you pay a little more each month.

Getting out of debt is a goal for just about everyone out there.  The best way to get out of debt is to pay extra each month.  The minimum payments are designed to help the lender earn as much as possible off your loan.  By paying it off early you save money, and you build your equity faster.  Unless you have a loan that has extremely low interest (one where inflation is higher than the rate on the loan) you would be better off getting rid of it early.  Even if you do have a low interest loan, paying it off could boost you psychologically.

References:
John Jones: Block My IP Address, Nomad Press, 2013