Could you actually pay off your house in just 5 years? (It’s possible. Now that I have your wheels turning…let’s start thinking about that 5 year mark again. If you pay an extra $3,220 a year on your $300,000 mortgage, you’ll pay off your mortgage 8 years early AND save over $85,000 in interest payments! an extra $268 a month)? When would you pay it off and how much interest would you save? The impact of 2 extra mortgage payments a yearĪgain, if we just plug these numbers into the early mortgage payoff calculator… What if you paid an extra $3,220 a year toward your mortgage (ie. Your interest is 5%, it’s a 30-year loan, and your payment is $1,610. Let’s continue on with our $300,000 loan example. So…if making 1 extra mortgage payment a year can have such a big impact, what about making 2 extra mortgage payments a year? What could that do? Related: Making 1 Extra Mortgage Payment a Year: What’s the Impact? What if I make 2 extra mortgage payments a year? We simply enter those numbers into the tool…Īnd as you can see, if you pay an extra $1,610 a year on your $300,000 mortgage, you’ll pay off your mortgage 5 years early AND save over $50,000 in interest payments! If you make one $1,610 payment a year, that’s roughly equivalent to an extra $134 a month ($1,610/12 months). Let’s plug these numbers into the early mortgage payoff calculator. Get this… The impact of 1 extra mortgage payment a year Let me tell you, I’m always baffled when I calculate the impact of these once-a-year payments. $20.9k isn’t that much more than $19.3k…It really can’t make THAT much difference in the grand scheme of your overall mortgage payoff…can it? So, in total, you’ll be putting $20,930 toward your mortgage instead of $19,320. What if, instead of making the expected $19,320 worth of mortgage payments each year, you decide to add a $1,610 payment in there. Let’s say you recently signed up for a 30-year $300,000 mortgage at 5% interest. What happens if you make 1 extra mortgage payment a year?īefore we get into the specifics of paying off your mortgage in 5 years, let’s take a look at a simpler feat – paying just one extra mortgage payment a year.
#Payoff loan calc download#
This post is going to be one of my best! Give it a read, take notes, and download the tool! And best of luck to you paying off your mortgage!!
#Payoff loan calc how to#
Not sure how to come up with extra money to pay off your mortgage in 5 years? Use my robust mortgage calculator from Etsy to see how much you’ll need to pay each month! (I’ll give plenty of tips and examples in the post below, but if you want a tool that’s catered just to you, then you may want to pay the small amount I’m asking and download the tool. Want to pay off your mortgage in 5 years? Whatever you’re looking to do, I have the tips for how to pay your mortgage faster and calculations that will show you exactly how long it will take to pay off your mortgage based on the payments you’re making. Today, you’re looking at 5% or more! If the rates keep rising, it starts making more and more sense to pay your mortgage off! Want to know how to pay off your mortgage in five years? Or maybe 10? Or heck, maybe 2 years? It used to be you could get a 30-year mortgage for less than 3%. Mortgage loan rates have soared since their lows in 2021.
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