My 30 year mortgage loan is $255,413 with a monthly payment of $1,321.33 at 6%. There are only 8 years remaining. what is the payoff?
To calculate the remaining balance or payoff of your mortgage loan, you will need to consider the number of remaining payments, the interest rate, and the original loan amount. Here's how you can calculate the payoff for your mortgage loan.
1. Determine the number of remaining payments: Since there are 8 years remaining in your mortgage, you need to calculate the total number of remaining monthly payments. Multiply the number of years by 12 (months in a year) to get the total months remaining. In this case, 8 years * 12 months/year = 96 months remaining.
2. Calculate the monthly interest rate: Divide the annual interest rate by 12 to get the monthly interest rate. In this case, the annual interest rate is 6%, so the monthly interest rate will be 6% / 12 = 0.005 (or 0.5%).
3. Use an amortization formula or tool: To calculate the remaining balance, you can use an amortization formula or an online mortgage calculator. The formula to calculate the remaining balance is:
Remaining Balance = Loan amount * (1 + Monthly Interest Rate)^(Total Months) - (Non-Principal Payment per month * ((1 + Monthly Interest Rate)^Total Months - 1)) / Monthly Interest Rate
In this case, the loan amount is $255,413, the monthly interest rate is 0.005, and the total months are 96. The non-principal payment per month can be calculated by subtracting the principal payment from the total monthly payment. In this case, the principal payment is $1,321.33, so the non-principal payment per month is $1,321.33 - principal payment.
Alternatively, you can use an online mortgage payoff calculator by entering your loan details, such as loan amount, interest rate, loan term, and the number of remaining payments. The calculator will provide you with the exact payoff amount.
By following these steps or using an online mortgage payoff calculator, you can determine the remaining balance or payoff amount for your mortgage loan.