Most home loans are for a 30-year term. To calculate how you personally can pay off your home 10 years sooner, you will need to get your most recent mortgage statement or go online and get your pay off balance. Now get your interest rate from your statement and using a mortgage calculator. You can use mine at www.roxyloans.com it’s at the bottom of my home page. Just plug in your balance, leave the down payment box empty, add in your interest rate, then change the term from 30 to 10 or 15 or whatever you want the term to be and hit calculate. This will give you the principal and interest you will need to pay each month to pay off your mortgage in the term you picked.
Now remember if you have property taxes, home owners/hazard insurance and any mortgage insurance that you pay in your mortgage payment each month too, this is called and impound or escrow account. You will need to add that figure to your payment. These figures should also be on your mortgage statement. If it’s not you can probably find the amount online in your account payment history.
One more thing to note and it’s important. Most mortgage servicing company and lenders may not know what you are doing if you send in more than your normal payment. If you plan to pay extra to pay off your mortgage early, send the extra by mail and by check and add instructions for them to apply this extra amount to your principal balance, you don’t want them to mistakenly add it to any interest due when they receive the payment. Keep good records of your over-payments and check your principal balance every quarter to make sure they are being apply to your account correctly.
If you would like an amortization table of the new amount/term you will be paying, I would be happy to do this for you FREE. Give me a call and we can go over any questions you may have.