Many people with the resources may think paying off their mortgage early makes sense. Current mortgage payment: The monthly payment, principal and interest, based on your original mortgage amount (doesn’t include current homeowners insurance or taxes).This rate will be lower than your annual percentage rate (APR), which does include these fees. Annual interest rate: The simple interest rate on your loan that doesn’t include private mortgage insurance (PMI), the origination fee or point(s) paid at the beginning of the mortgage.This is not to be confused with the remaining principal balance. Remaining mortgage amount: The amount you still have financed, including interest.Original mortgage term: The length of your original mortgage in years (15-, 20- and 30- year terms are the most common).Years remaining: The number of years left on your mortgage term.Current mortgage payment: The monthly payment, principal and interest, based on your original mortgage amount (doesn’t include current homeowners insurance or taxes)Īs you use the calculator, there are some mortgage terms that you’ll need to know.Annual interest rate: The simple interest rate on your loan that doesn’t include private mortgage insurance, the origination fee or point(s) paid at the beginning of the mortgage (this is why this rate is lower than your annual percentage rate (APR), which does include these fees).Remaining mortgage amount: The loan amount you still need to pay, including interest (don’t confuse it with the remaining principal balance).Years left on the original mortgage termĪs you use the calculator, there are some mortgage terms that you might need to know.Number of years in which you’d like to pay off your mortgage, if applicable.Original loan term (years your mortgage spans). Make sure you already know or have the following handy: Press the Principal button, and you will see that you could buy a $14,906.02 car with no down payment -or put more money down on a more expensive car.How To Use This Mortgage Payoff Calculatorīefore you start, you’ll need to gather some information.5.99 = Interest Rate (compounded Monthly).How much of a car can you buy? You would enter: Suppose you want to buy a car, but you don't want to spend more than $350/month for payments.It will take 360 months to pay off your mortgage! (359 full payments of $1,200 and a final payment of only $296.80).Leave everything the same, just enter 1200 for Payment and press Months.How long will it take to pay off your mortgage? You would like to round your payment up to $1200/month. Using the example above, let's say you can make a higher monthly payment.In this case, you'll make 359 full payments of $1,199.11 and a final payment of $1,190.29. Now you can view the schedule again to see the difference it makes. The # of months won't change much, if at all. You can do that on this calculator simply by adding a penny to the payment and solving for "Months". Some lenders don't like the final payment to be greater than the regular payment so they'll add a penny to the regular payment. Note: If you look down the amortization schedule, you'll see the final payment is $1,200.13.Press the Payment button, and you'll see that your monthly payment would be $1,199.10.
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |