Mortgage Payment Calculator Dave Ramsey – Pay Off Fast
What Is the Mortgage Payment Calculator Dave Ramsey Style?
The "mortgage payment calculator Dave Ramsey" style helps you understand your loan the way Dave Ramsey recommends. It shows monthly payments, total interest, and ways to pay off your mortgage faster. This calculator avoids risky loans, promotes 15-year fixed mortgages, and encourages extra payments.
How to Use the Dave Ramsey Mortgage Calculator
Here’s how you can use it step by step:
- Enter your loan amount – the total mortgage you’re borrowing.
- Add your interest rate – usually 5% to 8% depending on your lender.
- Choose a 15-year term – Dave strongly recommends this.
- Enter your down payment – aim for 20% or more.
- Add taxes and insurance – this gives a more accurate monthly cost.
- Hit calculate. You’ll see:
- Total monthly payment
- Total interest paid over the life of the loan
- Amortization schedule (principal vs interest)
Now you can plan better.
Dave Ramsey’s Strategy to Pay Off Mortgage Early
Dave Ramsey says: Get out of debt fast. So, here’s how he suggests paying off your home:
- Use a 15-year fixed-rate mortgage.
- Don’t spend more than 25% of your monthly income on your payment.
- Avoid adjustable-rate and interest-only loans.
- Make extra principal payments every month.
- Use bonuses or tax refunds to pay lump sums.
- Stick to a monthly budget.
This plan lowers your interest and saves years of payments.
Lump Sum vs Monthly Extra Payments
Should you pay extra each month or make a one-time big payment? Let’s compare:
Option 1: Lump Sum
Pay a large amount once. Example: BDT 2,00,000 paid after 5 years. Cuts interest and shortens term.
Option 2: Monthly Extra Payment
Add BDT 5,000 to each monthly payment. Slowly reduces principal every month.
Which is better? Both save money. Lump sum gives immediate results. Monthly extras build long-term savings. Do both if you can.
Dave Ramsey’s Baby Steps and Mortgage
Dave’s Baby Step 6 says: Pay off your home early! Only after:
- You’ve paid off all other debt.
- You’ve saved 3-6 months emergency fund.
- You’re investing 15% in retirement.
After this, throw all extra money at your mortgage. Use the Baby Steps Mortgage Calculator to stay on track.
Time-Based Payoff: Pay Off Faster
How to Pay Off a 30-Year Mortgage in 15 Years
Use this trick: Keep your 30-year mortgage. But pay like it’s a 15-year one. Make payments twice a month. Use the “how to pay off a 30-year mortgage in 15 years calculator”. It shows:
- How much extra to pay monthly
- How much time you save
- Interest savings
Want to Finish in 5 Years?
Use the “how to pay off mortgage in 5 years calculator”. You’ll need big monthly payments. Use if you’re close to retirement or have high income. It’s aggressive—but doable.
Comparing Other Calculators
Not all mortgage calculators are the same.
Wells Fargo Mortgage Calculator vs. Dave Ramsey’s
| Feature | Dave Ramsey | Wells Fargo |
|---|---|---|
| Term | Only 15 years | 15, 20, 30 years |
| Risk | Low | Varies |
| Advice | Debt-free focus | Lending options focus |
| Extra Payment Option | Yes | Yes |
If you want to be debt-free fast, Ramsey’s model is safer.
Free Mortgage Calculator Tools to Try
- RamseySolutions.com – official tool.
- NerdWallet – for comparing loan types.
- Bankrate – full cost breakdown.
Use these before making any home buying decisions.
Affordability: How Much House Can I Afford?
Dave says: Your mortgage should be no more than 25% of your take-home pay. Use the Home Affordability Calculator Dave Ramsey style. It helps:
- Avoid overspending
- Keep budget safe
- Prepare for emergencies
Understanding Principal vs Interest
When you pay your mortgage: A part goes to interest (bank’s profit). A part goes to principal (your loan). In early years, you pay more interest. Over time, you pay more principal. Use a Principal vs Interest Calculator to see this clearly.
Mortgage Amortization Schedule: Why It Matters
This schedule shows: Each month’s payment breakdown, what goes to interest, what reduces principal. It keeps you motivated and focused. You’ll see how extra payments reduce interest fast.
Refinancing vs Early Payoff
Should you refinance or just pay early?
| Criteria | Refinance | Early Payoff |
|---|---|---|
| Need New Loan? | Yes | No |
| Paperwork | A lot | None |
| Cost | Closing fees | None |
| Goal | Lower rate | No debt |
Dave recommends paying off early unless rates are extremely low.
Debt Snowball for Mortgage?
This method pays off smallest debts first. Then you move to the next. For mortgage: Not ideal for big loans. Use debt avalanche or extra principal method instead. But you can use the snowball to free up cash from other debts. Then aim all that money at your mortgage.
Frequently Asked Questions
Final Words: Pay Off Your Home, Live Free
The mortgage payment calculator Dave Ramsey way is simple and smart. You know your numbers. You stay debt-free. You protect your future. Use the tools, follow the baby steps, and stick to your plan. You’ll be mortgage-free faster than you thought.