Do the math to see if prepaying your mortgage offers the best payoff. If you bought a home when interest rates were 4% or lower, saving on interest is unlikely to provide as much of a return on your money as you could get through investments.
If you have high-interest credit card debt, personal loans or auto loans, it’s generally a wiser move to apply extra payments to those expenses first. Mortgage payments often carry lower interest rates than other types of debt.
Your mortgage balance may not accurately reflect the amount you owe-there may be additional fees and penalties. Should I Pay Off My Mortgage Early?īefore you make the decision to pay off your mortgage early, check with your loan servicer to confirm the remainder of your payout. Even if you have the funds available to pay off your mortgage early, whether or not doing so makes sense warrants some assessment. If you’re thinking about getting a mortgage and plan to pay it off early in some way, you may want to ask your lender about an open-end loan.Īlso, not all borrowers are in the same financial situation. For instance, closed-end loans-which make up most standard mortgages-can restrict prepayments entirely or require borrowers to pay a heavy penalty if they pay off or refinance their loan within a certain number of years (typically three to five). However, some types of mortgages come with prepayment penalties.
CHASE EXTRA PAYMENT MORTGAGE CALCULATOR FREE
After all, not having that recurring monthly payment while also getting to own your home free and clear can be a liberating feeling. 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, 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 amount you first financed (includes interest, so 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:
CHASE EXTRA PAYMENT MORTGAGE CALCULATOR HOW TO
How To Use This Mortgage Payoff Calculatorīefore you start, you’ll need to gather some information.
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