## How do you calculate simple interest?

Simple interest is calculated by multiplying the daily interest rate by the principal, by the number of days that elapse between payments. Simple interest benefits consumers who pay their loans on time or early each month.

## How do you calculate simple interest monthly?

Simple Interest Formula Divide an annual rate by 12 to get (r) if the Period is a month. You’ll often find the formula written using an annual interest rate where the number of periods is specified in years or a fraction of a year. The time can be specified as a fraction of a year (e.g. 5 months would be 5/12 years).

## What happens if I pay an extra \$100 a month on my 15 year mortgage?

Adding Extra Each Month Simply paying a little more towards the principal each month will allow the borrower to pay off the mortgage early. Just paying an additional \$100 per month towards the principal of the mortgage reduces the number of months of the payments.

## What happens if I pay 2 extra mortgage payments a year?

Making additional principal payments will shorten the length of your mortgage term and allow you to build equity faster. Because your balance is being paid down faster, you’ll have fewer total payments to make, in-turn leading to more savings.

## How can I lower my monthly mortgage payment without refinancing?

You Can Make Changes In Your Payment

1. Make 1 extra payment per year.
2. “Round up” your mortgage payment each month.
3. Enter a bi-weekly mortgage payment plan.
5. Make a request for loan modification.
6. Make a request to lower your property taxes.

## How do I ask my bank to lower my mortgage rate?

Here are four strategies you can use to try to get a lower rate before you lock:

1. Shop around with multiple lenders.