How to Figure Mortgage Payoff
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| Hi,
There's a lot of variables you have to take into consideration: Here's some of them: Amount used as down payment, rates of interest, ability to pay weekly, bi-weekly or monthly, as well as amortization dates and other things. I remember when I bought my first home and looked in a Popular Mechanics books of all things at the dentist office. It stated paying bi-weekly saves the average person 33,000 dollars over the course of your loan! It's probably double that now..anyhow the cost saved is even better if you are able to pay weekly. Some banks will allow you to get a morgage in which at the end of the term or yearly you are able to pay lump sums directly onto your principal which saves a ton of money on the interest charged. Some banks allow you to pay an small percentage extra on top of what what previously agreed. Take for example I asked my bank to take a very small amount off bi-weekly - an extra 15 dollars. That amount wouldn't break me and is only 30 dollars extra monthly, but goes directly onto the prinicipal. When my morgage expires in 2008 the savings doing that extra 15 dollars bi-weekly will have shaved another 8,000 off my morgage believe it or not! Here's a site which may help you and you can play with numbers to give you an idea. First check with your local banks for morgage rates..for 6 month, 1 year , 5 years..ect..and play with the numbers. As for payouts I have my home 3/4 paid off so I'm not there yet, but your bank should be able to tell you that. I once bought out my existing 10 year morgage after 2 years at the cost of 1500 dollars but by doing so was able to remorgage at a much lower interest rate - which resulted in reducing my payments by half for the next five years. I recommend always going with a morgage broker as they will scan the country and find a bank that will give you the lowest rates. No cost to you at all as the bank pays the morgage a brokers fee for finding you. My mom, myself and sister have bought numerous properties this way when banks traditionally turned us down in the past. Just be careful not to overextend yourself. The banks the morgage brokers found were traditional banks by the way, that took over our morgages. http://www.gregnowik.com/mortan.htm Good luck to you! Marianne and the boys |
| If you mean you have a mortgage already and want to know how much it will cost you to pay it off completely today, then you must contact the lender for a payoff amount.
For a conventional mortgage, the amount will be: The principal balance as of the first day of the current month, plus interest for the number of days from then till the date of payoff. usually they will give you an amount and say something like "This amount is good until friday the 17th". If your payoff reaches them and posts to your account before that day, they will send you a refund for excess interest paid. If you are asking how much the monthly payments on a mortgage would be, there are many mortgage claculators on the net; Here's a site that you can really trust, and it won't have all sorts of popups and other nasties: <a href="http://www.fanniemae.com/homebuyers/calculators/index.jhtml" target="_blank">Fannie Mae Mortgage Calculators</a> Good luck. |
Ron wrote: If you mean you have a mortgage already and want to know how much it will cost you to pay it off completely today, then you must contact the lender for a payoff amount.
For a conventional mortgage, the amount will be: The principal balance as of the first day of the current month, plus interest for the number of days from then till the date of payoff........ I have a mortgage and want to pay it off. I was pretty sure that's how it was figured, but wanted to ask those of you that "knew for sure", so I could do some figuring without waiting until Monday "during business hours". (fingers & toes crossed) Thanks! |
Does your mortgage company have a website? I can go onto our mortgage company's website at anytime and get our payoff amount. I just wish I could afford to pay it off.  Oh well...10 more years! lol |
JakobandBrandonsmom wrote: Does your mortgage company have a website? I can go onto our mortgage company's website at anytime and get our payoff amount....
Yeah, but you have to order it, and not knowing whether there is a fee or not, I didn't try it. Thanks for the info. |
We can do the same thing. Just log into our account and all the info is there. Payoff, total amount that goes to interest, principle and escrow. There's all sorts of little pieces of info like that. It also shows how much you'll pay in total if you ride the mortgage out to full term with no late payments and all that. After looking at these numbers and comparing them to our last mortgage, I am so glad we refinanced down to 15 years!!! We are saving 6 figures!!! 
Technology is great!! I don't know how people used to do stuff before computers. Guess that's where all the extra time comes from that we spend on our cell phones! |
Call your Mortgagee Company  |
What everyone here has forgotten to mention is that not only will you have to pay off the outstanding principle and interest, the mortgage company will almost always charge a penalty fee for paying out your mortgage early  They see your early payout as a "loss of income" , and as such profits, so they try to extort the maximum possible from you for such a "heinous crime" as wanting to actually own your home and be mortgage free!
As a minimum these fees will usually be based on the next 3 months interest and in some cases will be substantially higher! As others have councelled, check with your mortgage company/bank for their exact policy which is applicable to your loan. |
| I'm not sure that most mortgages in the US carry an early termination penalty or fee. |
Mine was set up at my request that there be no penalties for early payoff but, maybe they agreed because it was their policy anyway.  |
| Assuming you don't have enough to pay off the mortgage:
Using that calculator, I've come to the conclusion that it's better to make larger monthly payments, instead of large, one time payments towards paying off a mortgage. Is that correct? If so, I advise everyone to use that calculator!!! The same amount of money will cut more time off the mortgage, and save you more money! |
| Depends on what you mean by "better" and what your situation is.
If you're a little short and want to save the most, pay off all that you can up front, as long as you have enough reserves in case something goes wrong financially in your life. You'll save paying the most interest by paying as much as you can right now, then paying off as fast as you can in the future as well. It's hard to "tell you what to do" because I don't know the rest of your financial situation, your ages, your goals, where you live, the real estate market there, your job situation or social security situation, your life insurance situation, your family (Children? How many? None? Ages? How well they're doing...) There's a ton that goes into decisions on a financial plan. Good luck, Guest. |
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