Early Mortgage Payoff Calculator Show
Would you like to pay off your mortgage earlier? This Mortgage Payoff Calculator estimates how paying extra each month, or biweekly, can accelerate the time to pay off your loan and how much interest you can save by doing so. Download Our Mobile App for More Advanced Calculators Mortgage Information Loan Amount $ Interest Rate % Loan Term (yrs) Start Date Extra Payment Information Type
Amount $ Copy Link Printable / PDF Results Your principal and interest payment: Payment Frequency: Extra Payment: Loan Original Payoff Date: Loan New Payoff Date: Total Time Saved: Original Total Interest: New Total Interest:
Total Interest Saved: PRINT RESULT Copy Link
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10/27/2022 30 Yr. Fixed Rate 7.04% -0.03%
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10/27/2022 30 Yr. Fixed Rate 7.04% -0.03% Editorial Note: We earn a commission from partner links on Forbes Advisor. Commissions do not affect our editors' opinions or evaluations. Paying off your mortgage sounds great—especially if you can pay it off early. You’ll have financial freedom, more room in your monthly budget and won’t owe more interest. But there are lots of important considerations that go into the decision to pay off your mortgage, not to mention developing a strategy to get it done. Use this mortgage payoff calculator to determine whether it’s the right move for you. How to Use This Mortgage Payoff CalculatorBefore you start, you’ll need to gather some information. Make sure you already know or have the following handy:
As you use the calculator, there are some mortgage terms that you might need to know.
Should I Pay Off My Mortgage Early?The decision to pay off your mortgage early is a personal one. Doing so is probably the right move if you want to prioritize eliminating debt, reducing the amount of interest you pay or freeing up space in your monthly budget. However, deciding to wait might be a better choice for you if you have concerns about your monthly cash flow now or in the future—say because the economy is shaky or you’re hoping to retire soon. How to Pay Off Your Mortgage Early Using This CalculatorThe calculator on this page helps you visualize different scenarios for making additional payments toward your mortgage. You can use it to determine how much more you’d need to pay if you want to hit a particular time goal—like paying off your mortgage in 10 years or by the time you retire. Or if you have a specific amount of extra money to put toward your mortgage each month, you can use the calculator to see how quickly you’d pay off the debt with the increased payments. It can also break down what that means in terms of principal and interest, but it doesn’t take into account insurance and taxes. More Ways to Pay Off Your Mortgage EarlyHere are a few more creative strategies for paying off your mortgage early:
Is There a Penalty For Paying Off My Mortgage Early?You may have to pay a prepayment penalty if you pay off your mortgage within the first few years of the life of the loan. That amount can be hefty—often as much as 2% of the mortgage amount—enough to impact your calculations about early payoffs. The good news is that you can avoid the prepayment penalty by waiting until it no longer applies or, in some cases, talking directly with your lender about it. Frequently Asked Questions (FAQs)Pay off your mortgage or grow your wealth: Which is best?The choice often comes down to whether you have retirement savings or not. The younger you are, the more you should focus on retirement savings. Later on, when compound interest has grown your wealth, you could make extra payments toward your home loan principal to build more equity. Once you feel your retirement portfolio is in good shape, try to make extra mortgage payments early to reduce the principal you’re paying interest on. What are the advantages and disadvantages of paying off my mortgage early?Paying off your mortgage early can be a smart financial decision, but it’s not always the best route for everyone. Pros of paying off your mortgage early
Cons of paying off your mortgage early
Use a mortgage calculator to decide if the pros outweigh the cons, and get clear on your priorities before making the leap to early payoff. What is a mortgage payoff statement?Once you’re ready to pay off your mortgage, you’ll need to request a mortgage payoff statement from your servicer to make your final payment. The payoff statement is crucial because it will likely include some fees and interest calculations that you may not know about. The payoff statement is good for a certain period of time, say 30 days, which will be specified in the statement. If you can’t make that deadline, it’s not the end of the world. It just means you’ll have to repeat the process when you are ready. Aside from that, you should cancel any automatic payments on your mortgage, get a refund on your escrow, and let your insurance company and tax collector know you’ll be paying them directly (and make sure you save for these bills). You might see a bump in your credit score after paying off your mortgage (if your credit is good, the boost will be negligible). What documents should I keep after paying off my mortgage?It’s a good idea to read up on the various documents you can expect to receive after paying off your mortgage. In general, you can expect to receive:
You’ll definitely want to hang on to your deed, the certificate of satisfaction and the final mortgage statement. Is it possible to pay off a house in 5 years?Paying off your mortgage in five years or less is possible for many homeowners if they plan appropriately. It may require cutting back on spending or increasing your income, but often it can be done.
What happens if I pay an extra $300 a month on my mortgage?You decide to make an additional $300 payment toward principal every month to pay off your home faster. By adding $300 to your monthly payment, you'll save just over $64,000 in interest and pay off your home over 11 years sooner.
What happens if I pay an extra $500 a month on my mortgage principal?Making Extra Monthly Payments Calculator
Making extra payments of $500/month could save you $60,798 in interest over the life of the loan. You could own your house 13 years sooner than under your current payment.
How can I pay off my mortgage 5 years early?Here are some ways you can pay off your mortgage faster:. Refinance your mortgage. ... . Make extra mortgage payments. ... . Make one extra mortgage payment each year. ... . Round up your mortgage payments. ... . Try the dollar-a-month plan. ... . Use unexpected income.. |