# TOOLS: Pay Off The Mortgage Early!

Welcome to the latest series on the wildly popular website – www.JosephSangl.com!  With this series, I will be sharing how you can  use some of the calculators from the "TOOLS" page to take your financial plan to the next level.

I remember the first day that I put together my "Sangl Family Home Pay-Off Spectacular".  I realized just how little of my home I actually owned!  When the question was asked of me, "Are you a homeowner?", I could no longer answer, "Yes."  Wells Fargo was my homeowner!

With that realization, I decided to pay off my mortgage early.  And, God-willing and if the creek doesn't rise, Jenn and I will pay off our house in two years and nine months.  How do I know that?  Because of another FREE tool on this wildly popular website known as www.JosephSangl.com!

The tool is called the "Early Pay-Off Calculator".

Here is how it works.  You need to know three things to use this calculator.

1. Mortgage interest rate
2. Mortgage balance
3. Amount of principal & interest payment that you will be paying (don't include the escrow!)

Let's say that one has a thirty-year mortgage with a \$150,000 balance and a 6.125% fixed interest rate and a \$911/month principal & interest payment.

Suppose you want to know what a monthly principal & interest payment of \$1,000 will accomplish.  Use the "Early Pay-Off Calculator" to calculate it for you!

Just by paying \$89/month extra, the thirty-year mortgage will pay off 6.3 YEARS sooner!  How awesome is that?!

One item to note is to designate all extra money to be applied to "principal reduction"!  Some of the sly mortgage companies will attempt to apply it to "prepaid interest".  That would be a bank error in their favor!  Make sure that all extra money is applied to your mortgage principal.

What if the above mortgage holder wanted to pay off their mortgage in five years?  You can use the calculator to find out how much would need to be sent each month.

For the low-low price of \$2,900 each month, the mortgage will leave in just FIVE years!  Can you do that?

Let me ask you another question, if you were debt-free except for the house, could you do this?  It is amazing what you can accomplish when you are not bound up in debt!

How early will you pay off your mortgage?

Oh, by the way, you can use this calculate to calculate the early pay-off of ANY type of loan!

In the next part of this series, I will be sharing how you can calculate your mortgage payment.

1. cockadoodaldoom on March 19, 2008 at 10:44 am

Joe,

These tools are so cool.

They really get you pumped about getting free of debt.

Thank you so much for doing what you do.

doom

2. chris on March 19, 2008 at 12:07 pm

Joe:

To steal your phrase, your site FIRES ME UP to get more creative in my own financial journal.