Mortgage Payoff Calculator - Early Payoff with Extra Payments
This mortgage payoff calculator figures the extra payment necessary to cause an early payoff within a specified number of years. Discover how much interest you will save between now and when your mortgage is paid off.
Please Note: You should only enter the principal and interest portion of your regular monthly payment. Do not include tax and insurance escrow accounts.
You can also compare 4 payoff strategies - monthly, bi-weekly, extra payment, and bi-weekly with extra payment using this mortgage calculator - plus it includes amortization schedules as well.
In other words, use this calculator to define time period and payment amount, and use the other calculator to define optimum early payoff strategy.
Should You Pay Off Mortgage Early?
You have paid off your debts, your kids have finished college, you have saved up for your retirement and you now have extra cash in your pocket. What’s next? Are you going to pay off your mortgage quickly or slowly?
One of the factors you should look into when deciding to pay off mortgage earlier is interest savings. Use the mortgage pay off calculator to determine how much you will save for paying off your mortgage now. The mortgage pay off calculator has a facility to compare 4 pay off strategies that will help you decide which strategy best fits your needs.
Factors To Consider When Paying Off Mortgage
Is your savings rate higher than your mortgage rate?
Are you going to incur penalties for overpaying your mortgage?
Do you have credit card or any other debts?
Have you set aside sufficient emergency fund?
Is your debt oppressing you?
Benefits Of Paying Mortgage Early
Pitfalls to Paying Off Mortgage Early
Many homeowners think that they should pay off that mortgage early to get out of debt, but does it always make sense to pay it off early? You do not want to pay off the mortgage and be low on cash. Some people want to pay off their mortgage with the idea that if they need some money later they can always use their house as collateral to get a loan. If you do this, you will be pushed back to where you started which is paying a higher interest rate.
Making Extra Payments
The mortgage pay off calculator will help you determine how much extra payments you need to make to pay off your mortgage early. Take time to understand the inputs necessary for the calculation.
Principal Balance Owed
Regular Monthly Payment
Number of Years to Pay Off Mortgage
Ultimately, the question of whether to pay off your mortgage early has no right or wrong answer. You need to assess your own financial situation and your goals. Check which is more important to you, whether having your own home or having a financial security. Paying off your mortgage is a huge milestone, and it really does change your life.
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