Whether you have just purchased your first home or are a homebuying pro, you should have a mortgage payoff calculator bookmarked for easy access.
In fact, you should have a host of mortgage calculators at hand so that you can easily keep track of where you stand, where your money is going, the impact of extra payments, and how long it will take for you to be mortgage free.
You may even want to take advantage of mortgage calculators when looking for homes.
Whether a current mortgage holder or an aspiring one, a mortgage payoff calculator will be instrumental in you understanding where you stand.
First, we’ll briefly discuss the different kinds of mortgage calculators you may want to explore, then zero in on the mortgage payoff calculator. We’ll conclude with a list of the best mortgage payoff calculator options for you to consider.
Different Types of Mortgage Calculators
First, let’s briefly discuss the different types of mortgage calculators you may want to utilize.
There are mortgage calculators out there for almost anything, ranging from parts of the mortgage to parts of your financial situation that go into determining the mortgage.
Some calculators that may be helpful include:
- monthly payment calculators
- home loan limit calculators which show you how much home you can afford
- minimum income requirement calculators let you see the minimum income required to afford a home
- rent vs. buy calculators help you determine if you are better off buying or renting a home
- tax savings calculators help you estimate the tax benefits of your home
- loan comparison calculators allow you to compare different mortgage terms
- refinance calculators help you compare new loan offers to your current one to see how much you could save
- closing costs calculators help you determine how much you will need for closing
The list above is by no means exhaustive but gives you a good idea of the mortgage calculators available to help you determine what you can buy, how to prepare for your mortgage, and where you stand with your current mortgage.
What Is a Mortgage Payoff Calculator?
A mortgage payoff calculator gives you a snapshot of your mortgage, including when you will pay it off, the total interest you’ll pay, and the total amount you’ll pay for the home (loan amount plus interest).
Some mortgage calculators will also allow you to play around with what it would look like if you made extra payments. These mortgage payoff calculators will give you a comparison of your original loan terms with that of extra payments. These calculators can be extremely helpful because they show you how much you’ll save in time and interest if you make extra payments (Important: make sure extra payments are principal-only payments and not applied to the next month’s entire payment).
A good mortgage calculator will also typically include in amortization schedule, which will show you every payment you’ll make over the life of the loan broken down into principal and interest. You’ll notice most of these calculators don’t include extra things like taxes and mortgage insurance, but don’t forget those pesky other factors that impact your monthly payment when looking for a house.
Why Use a Mortgage Payoff Calculator?
As mentioned above, a mortgage payoff calculator will allow you to get a snapshot of your loan, including when it will be paid off and how much you will ultimately pay (not including taxes and mortgage insurance).
You can also play around with the idea of making extra payments and paying off your mortgage early. You’d be surprised how far a little extra a month will take you, or even how much a bit here and there will impact the mortgage. I’ve been consistently paying extra on my mortgage and I’ve already shaved off a few years and thousands of dollars.
The amortization schedule that typically comes with mortgage payoff calculators is also helpful so you can see a breakdown of your payments over the life of the loan. Something to note is when you break even between the amount going to the principal and the amount going to interest. This point often isn’t reached until close to midway through the loan!
Seeing just where your money is going every month and how much is going to interest might be the extra push you need to begin making extra principal-only payments to try and get that balance flipped more in your favor.
The Best Mortgage Payoff Calculator Options
Now that you know what a mortgage payoff calculator does, why you might want to use one, and the various types of mortgage calculators out there, let’s dive into a few good ones to get you going.
Money Saved Is Money Earned Amortization Schedule Calculator
First up, we have our own mortgage amortization schedule calculator that we’d like to offer for your use.
I really like our option because it comes in the form of an Excel spreadsheet that you download. Once you have it downloaded, you can manipulate and save it as many times as you want without needing to go back to the website.
Our mortgage payoff calculator allows you to change the principal amount, loan terms, and interest rate, as well as look at the option of additional principal payments. Once your information in inputted, you’ll see the snapshot of your mortgage payoff at the top and an amortization schedule below.
Mortgage Calculators Amortization Schedule Calculator
Another great option is the amortization schedule calculator offered by the site Mortgage Calculators. This calculator does essentially the same thing as ours, however, they take it a step further by adding more options. Along with loan amount, terms, and interest rates, this calculator also allows you to add in your property taxes, insurance, mortgage insurance, and any HOA (homeowners association) fees.
Once calculated, you can see your total monthly costs, as well as a breakdown of each item. Plus, you will be able to see how much you’ll pay for each item over the life of the loan and the total you’ll pay (including taxes and other extras) over the life of the loan. You will also have the option to download your amortization schedule.
The only thing this calculator doesn’t do is allow you to play around with making extra payments. Luckily, the site does have an extra payment calculator that allows you to put in all the same information as the amortization schedule calculator.
If you’re looking to simply see your numbers in detail then the amortization schedule calculator will be sufficient, but if you also want to see the effects of extra payments we recommend checking out the extra payment calculator.
Arrest Your Debt Mortgage Payoff Calculator
Arrest Your Debt is a great site with a lot of helpful information, including a mortgage payoff calculator. While this calculator will show you much of the same information as the two described above, the goal of this calculator is to show you how much you can save by making extra payments.
There is a two-step process to do this. First, you input your loan origination information, including date of first payment, balance, interest rate, and years. This first step will give you a mortgage payoff snapshot of the total you’ll pay.
You can choose to stop there or go on to step two, which is to add in an extra payment amount, how often you’ll be making that extra payment, and the date you wish to start making extra payments. This second step will then yield a comparison, your original loan numbers and what they will be with the extra payments.
I like this calculator because the focus is on paying your mortgage off early, and that second step option will get people to thinking about it more than most calculators would. I also like the fact that you can set your extra payments to be one time, monthly, quarterly, or yearly. This flexibility let’s you see the impact of different schedules of extra payments, which will help you make a more informed decision.
Nerdwallet Early Mortgage Payoff Calculator
If you aren’t satisfied with the options we’ve already listed, you can always turn to the nerds for their mortgage payoff calculator.
Like the Arrest Your Debt calculator, this one also focuses on helping you pay off your mortgage early but is structured slightly differently. Aside from the usual figures like interest rate, terms, and beginning balance, this calculator also asks you for your current balance and how many years are left on your mortgage. Then, they also ask in how many years you want to pay off your mortgage.
This last question allows you to set an ideal timeline for paying off your mortgage and the calculator shows you what you’ll have to do to reach your goal.
Moral of the Story
Whether a first-time homebuyer or an old pro, a mortgage payoff calculator is your best friend. With so many different features and options, you’ll be able to fully understand all the details of your mortgage with a few simple clicks.
While a mortgage payoff calculator is a must, not all calculators are created equally. We’ve presented four great choices above with a range of possible options and ways to input data. These four calculators will give you all the information you need, it just comes down to a matter of preference.
Will you make it a goal to pay off your mortgage early?