I still owe $348,000 on my loan with 21 years left at 4.68% interest. I plan to sell my home next year. Is there a way to estimate my final bill, or do I need to ask my lender for a settlement fee? I’m looking for a rough estimate.
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You can use an online mortgage calculator. Just enter how many months are left on your loan, your interest rate, and your current balance. It will show you your balance for next year.
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You can ask for a copy of the original amortization form when you close. This will help you figure out the balance for any month you plan to sell next year. Alternatively, you can use an online amortization calculator. Just enter your interest rate, the original start date (the date of your first payment), and the original loan amount, and it will calculate it for you.
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Yes, call your lender and ask for a “payoff statement.” Give them the date you want the statement to be valid through so they can figure out the daily interest charges until the sale date.
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If you’ve been making your scheduled payments, you can check your amortization schedule from the original loan. If you don’t have it saved, request a copy from your lender or use an online calculator. Enter your original loan terms, and it will generate an amortization table showing your payment schedule.
For a quick estimate, check your most recent statement to see how much of your payment goes toward the principal. Multiply that amount by the number of months until you sell, then subtract it from your current balance. Keep in mind that you’ll need to account for some additional interest. To estimate this, divide the interest amount from your monthly statement by 30 to find your daily interest rate.
Also, be aware that some lenders may charge small fees for payoff demands and reconveyance deeds, which could add around $200.