Mortgage Early Pay off Calculator

Early Pay off Mortgage – Take Advantage of Reduced Loan Period

mortgage-early-payoff-calculator

Early Payoff of the loan is something, which many borrower consider actively today. After serving the mortgage for some time, if you find that you are in a comfortable financial situation and have surplus funds, which is not able to generate returns comparable to the interest rates levied on your loan, then it is a good idea to consider paying off your loan. It will reduce your loan serving period and you will get rid of the debt earlier.

Should You Payoff Your Loan?

There are lot of considerations to be kept in mind before taking a decision to early payoff your mortgage. First is how much savings you will make, if you opt for it. Then you need to calculate your current income and also anticipate your future earnings. You have to make a rationale decision about whether your incomes and spendings will leave sufficient amount with you to meet any emergency expenditure. And the most important consideration is whether the interest rates on the loan, which you are contemplating to payoff early, are high enough to justify its foreclosure. You need to calculate and be absolutely sure that the amount you will deposit for the early pay off, will not be able to generate better return elsewhere, then the interest rates, which you are paying on the mortgage.

Mortgage Early Payoff Calculator

Here we present the Morgage Early Payoff Calcualtor, which will allow you to calculate the amount you will need to in addition to your current monthly payments so as to pay off the loan within desired time period.

Inputs Required to be Entered

Following inputs are required to be entered to run this early payoff calculator.

  1. Mortgage Balance: This is the amount which you owe at present on your loan.
  2. Current Payment: The present monthly payment you are required to make to the lender. P&I means here sum of the Principal and Interest components.
  3. Interest Rate: The annual interest rate, applicable on your loan.
  4. Desired Payoff Time: This is the time period, in which you want the balance amount due on your loan to be paid.

Output Results Calculated by Early Payoff Calculator

  1. Additional Each Month: This is the calculated amount, which you need to pay every month in addition to the monthly payments you are paying at present.
  2. Total Monthly Payment: This is the total monthly payment you will have to make. This is actually the sum of the your current monthly payments and the additional payments you are required to make each month.
  3. Total Interest: This is the total interest payment you will pay now over the payoff period.
  4. Actual Payoff Time: This is the payoff period.

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Disclaimer

Lots of approximations and assumptions have been made while developing the calculators.

Please make your own calculations before making any financial decision.