Mortgage Payoff Calculator
You could save money on interest and pay off your mortgage sooner by increasing your monthly mortgage payment. Use this mortgage payoff calculator to see how that works.
Fill in "Additional principal payment" with an extra amount you could pay toward your mortgage each month, then click "Calculate" to see the potential savings and how much faster you'd pay off your mortgage. Click the "View Report" button for a detailed look at how a bigger payment shrinks your balance more quickly.
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Should you pay off your mortgage?
Paying off your mortgage can be a wise decision if you have sufficient funds and it aligns with your financial goals. It can provide a sense of security as it eliminates monthly payments, and you could save money on interest payments.
However, it's important to weigh factors such as mortgage interest rates, mortgage amortization, potential tax benefits, and your overall financial plan, including investments and retirement goals. Carefully assess your financial situation to make an informed decision that aligns with your long-term financial goals.
How to pay off a mortgage early?
There are multiple strategies to pay off your mortgage early.
- Make extra payments toward your principal each month.
- Consider refinancing to a shorter loan term or a lower interest rate.
- Make bi-weekly payments instead of monthly payments.
- Utilize windfalls such as bonuses or tax refunds toward your mortgage.
- Explore options like mortgage recast or lump-sum payments to reduce the mortgage balance.
- Review mortgage terms and seek advice from a financial advisor for personalized guidance.
What’s included in the mortgage payoff amount?
The mortgage payoff amount typically includes the remaining principal balance on the loan, any accrued interest up to the payoff date, and any outstanding fees or charges, such as late fees or prepayment penalties.
It may also include any escrow funds held by the lender for taxes and insurance. The exact components of the mortgage payoff amount can vary depending on the terms of your specific loan and the lender's policies. It's important to carefully review your mortgage agreement and consult with your lender to ensure you have a clear understanding of the items included in your mortgage payoff amount before making a final payment.