New Payoff Goal
17y 3m
Total Interest Savings
$122,306
Time Saved
7 Years, 9 Months
Monthly Payment $2,898.20
Interest Paid $341,047
This mortgage payoff calculator helps evaluate how adding extra payments or bi-weekly payments can save on interest and shorten mortgage term.
Early Payoff Strategies
Aside from selling the home to pay off the mortgage, some borrowers may want to pay off their mortgage earlier to save on interest. Outlined below are a few strategies:
- Extra Payments: Additional payments made monthly, annually, or as a one-time lump sum.
- Biweekly Payments: Paying half of the regular mortgage every two weeks results in 13 full payments per year.
- Refinancing: Taking out a new mortgage at a lower rate or shorter term.
Consider Opportunity Costs
Borrowers should consider the benefits they could have enjoyed if they had chosen an alternative. For instance, paying off high-interest credit card debt (often 20%+) is usually more beneficial than prepaying a 5% mortgage.
Mortgage Payoff FAQs
BMI is a calculated measure of body weight relative to height. To calculate BMI by hand, divide weight (kg) by the square of height (m).
Some lenders charge a fee for paying off a loan early to compensate for lost interest income. However, FHA, VA, and many modern loans prohibit these penalties.
Since there are 52 weeks in a year, biweekly payments result in 26 half-payments. This effectively adds one full extra monthly payment per year, significantly reducing interest and term length.