Calculators / Home & loans

Mortgage Lab

Real mortgages aren't one number — they're a lump sum in year two, a recast after the bonus, maybe a refinance in year five and a HELOC for the roof. Stack them all on one timeline and see what each move is worth. Nothing you type leaves this page.

$

Enter $1,000 to $20,000,000.

%

Enter 0.1 to 25%.

Lets every event below use a real calendar date, and the payoff show one.

%

Used to compare prepaying the mortgage against investing the same money.

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Paid off

Interest saved vs. minimum

Sooner by

Total interest (plan)

Monthly payment now

Balance over time

What each move is worth

Prepay the mortgage, or invest the money?

Balance by year

How the Lab works

Everything runs through one month-by-month simulation of your loan. Each event changes the machine's state at the month you chose:

One-time payment — the amount lands entirely on principal that month. Recurring extra — added to every payment (or every 12th, for yearly bonuses) from its start date. Recast — a lump sum hits principal and the lender re-amortizes: your required payment drops, the payoff date stays; most lenders charge a small fee (~$150–500) and require $5,000–10,000 minimum. Refinance — the balance (plus rolled-in closing costs, if chosen) becomes a new loan at the new rate and term from that month.

The "what each move is worth" list is computed by re-running the whole simulation with each event removed — so the number beside each move is its true marginal effect given everything else you stacked, not a standalone estimate.

Recast vs. extra payment vs. refinance

Same lump sum, three different outcomes: an extra payment keeps your payment the same and shortens the loan (max interest savings); a recast lowers the payment and keeps the date (max monthly relief); a refinance changes the rate itself (worth it when rates fell — see the dedicated refinance calculator for break-even detail).

Prepay or invest?

Prepaying earns a guaranteed, tax-free return equal to your mortgage rate. Investing might earn more — the comparison uses your expected-return number, invests the freed-up payment after an early payoff, and compares both paths at the same end date, apples to apples. The honest caveat: the market return is hoped for; the mortgage rate is contractual.

The HELOC line

The HELOC is modeled as its own loan — interest-only for the period you set, then amortizing — stacked into the household-debt view. HELOC rates float in reality; the model holds yours constant.