Pay off early with a mortgage calculator

A 30 year fixed rate mortgage may keep monthly payments significantly lower than a 15 year, but the interest can pile up quickly. At the end of a 30 year mortgage, the interest payments can end up being more than the original loan principal. By making extra payments, a homeowner can shorten the term and save a good deal of money. A mortgage calculator can help compute how much extra a homeowner needs to pay to save big.

How to use the mortgage calculator

Find a calculator to fit your needs. Bankrate.com offers a calculator that has an “extra payments” feature. Input the mortgage amount, the term and the interest rate of the current mortgage. Then hit “calculate” to see your monthly payments. Underneath “extra payments,” enter either a monthly, yearly or one-time payment. Click on “show/recalculate amortization table”, and check the amortization table to figure out how much can be saved. Play around with the payments to find the best extra payment for the budget.

Refinance instead

Those looking to save more can also find out how much refinancing can save them with a refinancing mortgage calculator. The calculator compares the current mortgage to the new one. It also takes other fees into account and computes a new monthly payment, monthly savings and the difference in interest. It then provides the total cost and the months required to recoup it.

3 Keys to Successful Retirement Planning

If you thought that buying a home was hard, retirement planning can be just as difficult. The toughest fiscal challenge most people face, planning for the non-working years takes time and money. Those who do it well will spend their golden years living financially stress-free. Here's how to become a retirement planning ninja.

Create a target goal

How much will you need? That's the million-dollar question, literally. Since the Department of Labor estimates that you'll need to replace 70 percent to 90 percent of your pre-retirement income for each year of retirement, you can estimate your target goal based on your current income and life expectancy. Of course, this is just a rough estimate. Factors like whether or not you'll own a home at retirement, vacationing habits and medical expenses will significantly impact how much you'll need to save.

Assess your progress

With a target goal in mind, you can assess how well you're doing. Here's where it gets tricky. On top of examining how much you've already stashed away in a 401(k), 403(b), 457 plan or IRA account, accurate retirement planning requires you to factor in such variables as Social Security benefits, the inflation rate, upcoming salary raises, the rate of return on your current retirement investments and the value of other assets such as pensions and life insurance. You may not know all the answers offhand, so you'll have to employ some guesstimates.

To simplify the math, Bankrate's retirement planning calculator can provide a projection of how much you'll have based on your current savings rate, as well as some suggestions

20-somethings! Have You Thought About Retirement Planning Yet?

Of course when you are in the midst of your 20s, who really thinks about retirement planning? Think back to the good times of working all day and staying out all night just to repeat the cycle. Then you begin approaching your 30s and realize your long term goals which include retiring comfortable in your 50s. Executing investing strategies at a young age allows you to put aside a low amount of money per year while growing your savings for the long term.

Begin saving today

Planning for retirement is not like planning for a big party; it takes long term goal setting which can be accomplished by taking the time to write your goals and research different investment options. Do you qualify for a 401k at your job? Do you know what a Roth IRA is? You may think it is hard to start saving but in reality, putting away even $50.00 per month in your 20s will help get you on your way to saving for retirement. Calculate retirement savings to find out how much you will have saved in 25 years.

Where does the money go

Enjoying life in your 20s can be accomplished but on a budget versus spending every cent which you worked hard for. Simple tasks like getting into the habit of saving $25.00 each pay check to send to a savings account or even savings accounts which automatically pull money starts the retirement planning process without too much hassle.

How much should you save

Retirement planning in your 20s can be the last thing you want to think about. Depending on your job and living situation, your contribution to your retirement savings account can vary. Some employers will match your contribution and if your living expenses are minimal, consider contributing the maximum allowed. If you are unsure of where or how to invest, consider contacting an investment adviser to help you with your retirement planning.

Retirement planning check list:

• Send at least $25.00 each paycheck toward savings
• Write down your long term retirement goals
• Contact an investment adviser
• Contribute to employer contribution retirement account