With all of the work involved with selling your home and purchasing a new one, people sometimes forget the importance of determining the amount of their mortgage payoff. When negotiating a sale price and figuring your new mortgage payment, it is crucial to factor in the fact that you also have to pay off your old one. Using the money gained from the sale of your home to pay off your old mortgage and put into your new home is a wise financial decision. Calculating the amount of payoff can help determine your new housing budget.
Call your mortgage lender to find out the exact amount owed on your mortgage.
Grab your calculator and enter the amount owed on your mortgage.
Multiply the exact amount of your mortgage payoff by your percentage rate.
Divide that number by 365. Write this number down. This is how much interest accrues each day. This is also known as the per diem.
Determine how many days until you will be paying off the mortgage.
Multiply the number of days until payoff by the amount per diem (the number you wrote down).
Add the number to the exact amount of your mortgage. This is the amount of your mortgage payoff.