Mortgage Payoff Calculator

What is a Mortgage Payoff Calculator?

A mortgage payoff calculator determines the money needed to repay a mortgage loan. It considers the principal loan balance, the interest rate, and the years until the loan is paid off. The calculator can also calculate how much money will be saved by making extra monthly payments.

How to Use a Mortgage Payoff Calculator?

Mortgage Payoff Calculator Formula:

(Mortgage Balance x (1 + Interest Rate/12)^(Number of Months) - (Monthly Payment x ((1 + Interest Rate/12)^(Number of Months) - 1)) / (Interest Rate/12))

Where:

Mortgage Balance = Original loan amount
Interest Rate = Annual interest rate (expressed as a decimal)
Number of Months = Number of months remaining on the mortgage
Monthly Payment = The amount of the monthly mortgage payment (principal + interest)
This formula calculates the total amount of money that will be paid over the remaining term of the mortgage, including interest and principal payments. The result is the total payoff amount for the mortgage.

Using a mortgage payoff calculator is easy and straightforward. Here are the steps to follow:

Step 1: Enter the current balance of your mortgage loan. You can find this by contacting your lender or looking on your mortgage statement.

Step 2: Enter the current interest rate on your loan. You can also find this by contacting your lender or looking on your mortgage statement.

Step 3: Enter the remaining term of the loan. This is the number of years left until the loan is paid off in full.

Step 4: Click on "calculate" to get your monthly payment.

Benefits of Using a Mortgage Payoff Calculator

Using a mortgage payoff calculator has several benefits. Here are a few:

It allows homeowners to see how much they need to pay each month to pay off their mortgage on time.
It helps homeowners create a budget and plan for their mortgage payments.
It allows homeowners to compare different loan options and see which one will save them the most money in the long run.
It can also help homeowners figure out if they can afford to make extra payments or if they should look into refinancing their loan.