Early Payoff Calculator
Many people settle on a mortgage with a longer term
when they first purchase their home. This is often because
longer term mortgages, such as those with 30-year terms,
reduce monthly payments by spreading payment amounts
over a longer period of time.
However, later on in their term, many people often
wish to pay off their mortgage earlier than stipulated.
Some reasons for the change of mind may include: they
don’t want to wait as long to own their home outright
and | or they don’t want to have to pay extra
money in interest payments for those additional years.
Often their incomes have increased and they can afford
to pay more each month than they could when they first
acquired their loan.
One solution to this dilemma is refinancing. You can
refinance to a shorter term loan and possibly get a
lower rate, depending on the market. However, if the
market is not good for refinancing, you can always add
extra money to your payments each month to achieve early
payoff on your mortgage.
Online early payoff calculators help you determine
exactly how much extra money you would need to pay each
month to payoff your loan in a specified time period.
Most of these calculators act simply by requiring you
to put in some basic information then providing you
with the amount.
For example, a calculator would want to know your original
loan amount, your loan’s term, your current interest
rate, the number of months you have paying on the loan,
and the amount of time you want to pay the loan off
in. The calculator would then respond by telling you
what your current payments are, how much you should
add to these payments, and how much your new total payments
These calculators are very useful in specifying an
extra monthly amount needed for those seeking to hasten
the payoff on their loan.