Looking To Payoff Your Home Early?

Purchasing a home is perhaps the biggest financial commitment you'll ever make. Aside from the hardly insubstantial cost of a mortgage loan, there are many concurrent costs that go along with buying a new house.

It's important to understand these costs before you even start to look at properties or shop for a mortgage loan. One of the major truths of buying a home is that you need to know you can afford it today – in a way that won't break the bank down the road. In that spirit, we offer a list of some of the major costs of buying a new home:

Loan points, which are paid in exchange for receiving a more competitive interest rate. One point is worth 1 percent of the value of the home.
Fees for title insurance and title work, both of which ensure that the home's title is correctly transferred so there will be no problems later on down the line.
Appraisal fees to ensure that the home is worth its stated value. These are necessary for the loan to close successfully.
Inspection fees so that you as the buyer know there are no major problems that will crop up without your prior knowledge.
Fees for a mortgage broker, who helps you shop for a loan to meet your needs.
Credit-check fees, which apply to anyone whose name is on the title.

What Is An Early Payoff Calculator?

An Early Payoff Calculator helps you evaluate the costs and benefits to paying off your mortgage loan on time as opposed to paying off the loan early. It works by entering in the following information:

Periods per year, or the number of payments you'll be making in a year. Enter 12 for monthly, 52 for weekly, or 1 for annually.
Loan amount, or money you'll be borrowing to finance your property purchase.
annual interest rate. The calculator assumes a fixed rate.
Payment per period, which includes principal and interest.
Loan term in years. Mortgage loans typically run 15 or 30 years.

You can calculate for four different items:

How your interest rate or payment term will affect the amount you're borrowing
How large a loan you can get
Interest rate, which is usually used for more theoretical than practical purposes
How much you'll have to pay and your savings should you pay off the loan early

How Can I Use This Information?

This calculator helps you compare the prices of paying on-time and paying more in order to pay off the loan early. In order to compare these prices, however, you must use the calculator more than once to see these results.

This is an Excel Spreadsheet loan calculator that is helpful too:

http://www.mortgagecalculatorsusa.com/loan-calculator.xls