Greetings! I need help with some mortgage calculations or a link to a specific calculator. My info- just turned 61, I am in the process of setting myself up for retirement in six years or so (not set on a date, as I love my job and could go until I’m 70). I am debt free except my mortgage. Yay! It took many years… Currently my mortgage payoff is $48,044.67, my interest rate is 4.37%. My payment is $721.69 (390 principal, 175 interest, 156 escrow). I can now add an additional $400 monthly to my payment to pay down the principal. I want no mortgage when I retire and am pretty sure that will happen, but I am looking for help in trying to figure out how much longer I do have with the info supplied above.
I am a long term planner and want to try and figure out how much time I will have after payoff to bank those payments in a HYSA before retirement, this will help me plan better for when to retire. I totally understand that escrow can change, but I always pay the difference if there is any to try and keep my payments as level as possible. Any help from all you financial gurus would be much appreciated!
Help With Mortgage Calculation
byu/65Trees inpersonalfinance
Posted by 65Trees
3 Comments
https://www.calculator.net/mortgage-payoff-calculator.html
https://www.slvfed.bank/calculators/early-mortgage-payoff-calculator
Sure, this calculator lets you account for extra principal payments. You can play around with this to see how much extra you’ll need to put in to accomplish what you’re looking to do: https://www.calculator.net/amortization-calculator.html
You’re in a really solid spot… this is mostly just timing now. With ~$48k left at 4.37% and adding $400 extra monthly, possibly you’ll likely knock this out in roughly 5–6 years (instead of ~8–9 on the normal schedule). That lines up pretty well with your retirement window.
If you want to be more precise, plug your numbers into a simple amortization sheet so you can see the exact payoff date and how much interest you save. That also helps you map out how many years you’ll have to “bank” those payments before retiring… Spreadsheet Point has a basic one that’s easy to tweak. Bottom line you’re on track to be mortgage-free right around retirement, maybe even a bit earlier depending on consistency.