1. What is Mortgage Acceleration?

Mortgage acceleration is a strategy to pay off your mortgage faster by making additional or larger payments. The accelerated payment method converts monthly payments into bi-weekly payments or increases the payment amount.

2. How Does the Calculator Work?

The calculator uses the acceleration formula:

Explanation: By paying 1/12th extra each month (equivalent to 13 monthly payments per year), you can significantly reduce your mortgage term and interest paid.

3. Benefits of Mortgage Acceleration

Details: Acceleration can reduce a 30-year mortgage by 5-7 years and save thousands in interest, while building equity faster.

4. Using the Calculator

Tips: Enter your current monthly mortgage payment to see what your accelerated payment would be. Ensure the value is positive and represents your principal + interest payment.

5. Frequently Asked Questions (FAQ)

Q1: How much faster will I pay off my mortgage?
A: Typically 5-7 years faster on a 30-year mortgage, depending on your interest rate and payment amount.

Q2: Is there a prepayment penalty?
A: Most modern mortgages don't have prepayment penalties, but check your loan documents to be sure.

Q3: Can I stop accelerated payments if needed?
A: Yes, you can revert to regular payments, though this will reduce the acceleration benefits.

Q4: Is acceleration better than refinancing?
A: It depends on your rate and goals. Acceleration works well when you have a low rate but want to pay off faster.

Q5: Does this work for all mortgage types?
A: Works best for fixed-rate mortgages. For ARMs, benefits may vary with rate changes.