Invest a little
Save a lot
Smart extra payments that accelerate payoff
Term
22 Yrs.
30 years
Monthly Payments
$4,150
$3,500
Savings
$123,346
The smartest way to prepay
PrePayments complete
year 10 - 12
Watch your savings and
equity multiply 2x
Save up to $100k
Declining PrePayments
Compounding (Equity + Interest) Savings
PREPAY CALC
Standard 30 Year Loan
With Altgage PrePay
Savings
Total Interest
Interest you'll pay over the loan life
$447,626
$331,104
$116,522
Loan Length
Time taken to be mortgage free
30yrs
24yrs & 6m
5yrs & 6 m
Extra Payment
Paid to principal every month
$0
$547 avg.
Crush mortgage interest
PrePayments decrease every month
PrePay 15% more on average
Double your home-equity
Shorten loans up to 10yrs
Grow savings everyday
Save $100,000
Savings are based on your loan interest rate, remaining term and mortgage balance. Tax free interest savings accrue for the loan term.
Start saving in 4 easy steps
Link your mortgage with the Method API
Answer a few security questions to verify your identity and connect your mortgage provider in less than 1 minute.
See interest savings of $100k on avg.
Lifetime savings are based on avoided interest expense that compounds over your mortgage term. All PrePayments go directly to principal.
Understand your prepayment schedule
PrePayments are the highest upfront and decrease every month. Equity grows 2x more on average and builds fairly.
Authenticate with Plaid to start PrePay
Instantly authenticate your bank account without entering sensitive info like account and routing numbers. Frictionless prepayments from any bank or credit union using ACH transfers. Control your connections and turn off prepay at anytime.
Frequently asked questions
You’ve got questions, we’ve got answers
How is PrePay smarter than making payments myself?
Because savings compound over time, initial prepayments are worth 5-8x more than last prepayments on a 30yr loan. Paying the same amount each month isn't best for you. $100 invested in year 1 is worth $447 (when rates are 5%) but the same $100 invested in year 20 is only worth $163. The bulk of PrePay happens in the first 5 years and declines to 0 by year ~10-12. You'll invest ~30% less and save ~45% more vs bi-weekly payments
What is your service fee?
Our fees are less than a fancy cup of coffee (on avg.) and 3% of your extra payment. On a prepayment of $279 you'll pay ~$8.1 in fees. As your prepayment decreases each month, so do our fees. We also use these fees to help operate the Altgage platform securely, develop innovative products and reach more homeowners.
Altgage PrePay is not your loan servicer
You retain 100% responsibility to continue making minimum monthly payments to your mortgage servicer. We only optimize and automate extra payments to principal that decrease every month. You can turn off PrePay and return anytime.
Remember to check with your mortgage servicer for any prepayment penalties if you have a non-qualified mortgage like a DSCR, interest only or hard money loan. Qualified mortgages in the US do not typically have prepayment penalties
Can't I pay extra directly with my bank?
Yes you can, but extra payments with your bank are not dynamic or smart. The three most common ways to pay extra are
- Bi-weekly payments: instead of making 12 monthly payments, bi-weekly payments split your monthly payment in two and pay it every other week. Since there are 26 two week periods in a year, you'll effectively make a 13th full payment, with a little sleight of the calendar.
- 1 extra payment a year: If you get paid monthly or receive a bonus at the end of the year, making a single extra payment will also cut your mortgage short similar to bi-weekly payments. Paying at the end of the year will save you less vs paying upfront.
- Fixed extra payments: do not vary every month. They are predictable but have the least impact on your mortgage unless your are paying more than than your monthly payment/12.
Since savings compound over time, initial prepayments are worth 5-8x more than last prepayments on a 30yr loan.
Start saving today
