Mortgage Payoff Calculator
A mortgage payoff calculator can be used to calculate how much you will end up paying on your mortgage in the timeline of your mortgage period. Whether you have a 30-year fixed or a 3-year ARM, the mortgage calculator will help you know approximately how much you will pay per month and how much you will end up paying total. For a mortgage payoff calculator specifically, you will see an amortization schedule based off of what would happen if you were to increase the amount you paid into principal each month or if you were to pay off the rest of your loan at once. Increasing payments might stretch you financially, but it does allow you to save on interest over the course of the loan: principal goes up, interest goes down.
This calculator will take into account the original loan amount and term, the years remaining, interest rate, and the additional amount you want to pay. What comes out of the calculator after putting in that data is the new accelerated payment and the new total cost of the loan.
It’s important to be aware of how much you are paying, the extent that your interest rate is affecting your payments, and for how much longer you will continue to pay your mortgage. Just imagine what you can do with your savings after the entire loan is paid off. Or think about the benefits of building equity at a much higher rate. Well you don’t just have to imagine it, plug in the numbers and see for yourself how much you can save on a new schedule.
Mortgage Payoff Calculator Terms
Annual interest rate
The simple interest rate (not the APR) that is applicable annually on the mortgage. Normally, this rate of interest is higher than the current rate of simple interest.
Actual term length of the mortgage when the contract was initiated.
Remaining term length (in year) on the original mortgage.
The original value of the mortgage when it was set up.
Amount you want to pay additionally with the scheduled monthly payment.
Interest and principal payments for each month according to the original mortgage contract.
Combined result of originally scheduled monthly payment and proposed planned additional monthly payment.