how to calc savings due to overpaying monthly mortgage???
November 30, 2011 8:40 PM Subscribe
How to calculate how much money I am saving overall by paying extra money on my monthly mortgage?
posted by anonymous_account to Work & Money (13 answers total) 5 users marked this as a favorite
I've tried figuring this out using a mortgage calculator. It said that if I paid $3800 per month extra, I would save some tens of thousands of dollars over the length of the loan. but when I divided the saved total by the number of payments (in order to calculate the amount saved by each overpayment), the resulting amount was *less* than the overpayment (3800). This, to me, means that I am *not* saving money overall by overpaying. But my impression is the opposite.
Also, the calulator distringushed between "savings" and "real savings". Huh?