How to Calculate Paying Off My Mortgage Early

Paying off a mortgage early requires some math.

Many people struggle to pay their mortgage each month. But if you can get on a budget and have a little extra cash after your bills are paid, you may find yourself wanting to pay off your mortgage early. Paying your mortgage off early can save a lot of money in the long run. A calculated approach can be important to getting the most savings.

Things You'll Need

• Calculator

Instructions

1. Determine what you can pay extra each month. There are many plans that involve paying half of your mortgage amount every two weeks instead of monthly. This reduces your mortgage by paying an extra month's mortgage every year. Even if you only pay a little extra each month on the principal, it will save money and take time off of your debt.

2. Gather all of your account information including how much you owe, what the rate is and the type of loan and terms.

3. Use a mortgage calculator. There are many mortgage payoff calculators online at such sites as bankrate.com and mortgagefit.com. Doing the math manually can be time consuming and lead to errors. Online calculators can do the work in seconds.

4. Decide what you want to pay. You can enter various amounts in payoff calculators and decide what strategy works best. Of course, the more you pay early, the more savings you'll see. But determining how much you can afford and how much you will benefit can help you make the right decision.

References

• mtgprofessor.com: How Do I Figure the Mortgage Payoff Month?

Resources

• mortgagefit.com: Mortgage Payoff Calculator