A mortgage payoff calculator helps you determine how quickly you can pay off your mortgage and how much interest you can save by making extra payments. It's a valuable tool for homeowners looking to become debt-free sooner.
The calculator considers several key factors:
Making extra payments on your mortgage can:
Before making extra mortgage payments, consider:
A: Compare your mortgage interest rate to potential investment returns. If you can earn more from investments than you pay in mortgage interest, investing might be better.
A: Extra payments reduce your principal balance directly, which decreases the amount of interest you'll pay over time and shortens your loan term.
A: Any amount helps reduce your principal and save on interest, but check with your lender about minimum payment requirements and how they handle extra payments.