Mortgage Payoff Calculator

How much interest can you save by increasing your mortgage payment? This financial calculator helps you find out. Click the “View Report” button to see a complete amortization payment schedule, and how much you can save on your mortgage!

Definitions
Annual interest rate (APR) – The yearly cost of a mortgage, including interest, mortgage insurance, and the origination fee (point(s)), expressed as a percentage. Maximum APR is 20%.

Mortgage length (years) – Total length, or term, of your original mortgage in years. Most common lengths are 30 years and 15 years.

Original mortgage amount – The original amount financed with your mortgage. Not to be confused with the remaining balance or principal balance.

Additional monthly payment – Your proposed extra payment per month. This payment will be used to reduce your principal balance.

Scheduled payment – Monthly principal and interest payment (PI) based on your original mortgage amount, term and interest rate.

Accelerated payment – Scheduled payment plus additional monthly payment.

Total savings – Total amount you would save in interest if you made the accelerated payment until your mortgage was paid in full.

Information and interactive calculators are made available to you as self-help tools for your independent use and are not intended to provide investment advice. We can not and do not guarantee their applicability or accuracy in regards to your individual circumstances. All examples are hypothetical and are for illustrative purposes. We encourage you to seek personalized advice from qualified professionals regarding all personal finance issues.

Mortgage Loan Calculator

Use this calculator to generate an amortization schedule for your current mortgage. Quickly see how much interest you will pay and your principal balances. You can even determine the impact of any principal prepayments! Press the “View Report” button for a full yearly or monthly amortization schedule.

Definitions
Mortgage amount – Original or expected balance for your mortgage.

Interest rate – Annual interest rate for this mortgage.

Term in years – The number of years over which you will repay this loan. The most common mortgage terms are 15 years and 30 years.

Monthly payment – Monthly principal and interest payment (PI).

Total payments – Total of all monthly payments over the full term of the mortgage. This total payment amount assumes that there are no prepayments of principal.

Total interest – Total of all interest paid over the full term of the mortgage. This total interest amount assumes that there are no prepayments of principal.

Prepayment type – The frequency of prepayment. The options are: none, monthly, yearly, and one-time payment.

Prepayment amount – Amount that will be prepaid on your mortgage. This amount will be applied to the mortgage principal balance, based on the prepayment type.

Start with payment – This is the payment number that your prepayments will begin with. For a one time payment, this is the payment number that the single prepayment will be included in. All prepayments of principal are assumed to be received by your lender in time to be included in the following month’s interest calculation. If you choose to prepay with a one-time payment for payment number ZERO, the prepayment is assumed to happen before the first payment of the loan.

Savings – Total amount of interest you will save by prepaying your mortgage.

Information and interactive calculators are made available to you as self-help tools for your independent use and are not intended to provide investment advice. We can not and do not guarantee their applicability or accuracy in regards to your individual circumstances. All examples are hypothetical and are for illustrative purposes. We encourage you to seek personalized advice from qualified professionals regarding all personal finance issues.

Helpful Mortgage Tools

Our calculators and mortgage tools will help you determine the right mortgage solution for your needs.

These tools are provided for educational and illustrative purposes only. The accuracy of the calculations and their applicability to your circumstances are not guaranteed.

Mortgage Loan Calculator
Use this calculator to generate an amortization schedule for your current mortgage. Quickly see how much interest you will pay and your principal balances.

Mortgage Payoff Calculator
How much interest can you save by increasing your mortgage payment? This financial calculator helps you find out.

Rent vs. Buy Calculator
Should you rent or should you buy your home? It takes more than looking at your mortgage payment to answer this question.

Mortgage Qualifier Calculator
This calculator helps you determine just how much house you can afford.
Mortgage Refinance Interest Savings Calculator
Use this calculator to see how much interest you can save by refinancing your mortgage!

Mortgage Glossary – U to Z

Variable Rate Mortgage – A mortgage that allows payments to fluctuate from time to time according to the institutions Prime Rate. As payments fluctuate a proportional amount of principal and interest is adjusted to the monthly repayment amount to ensure that the amortization schedule is met. For the best Variable rate mortgage, contact an Urban Mortgage Associate for details.

Vendor Take Back – In order to sell a property, the seller will provide some of the financing to ensure the transaction is completed.

Verification of Employment – Verbal confirmation by a lender or mortgage broker to determine employment status.

Year-End Statement – A summary report a financial institution provides at the end of the year.

Zero Down Mortgage – This mortgage is a 100% financing product that requires no down payment.

Mortgage Glossary – T

Takeout Mortgage Loan – a mortgage generally taken out to pay off a construction mortgage.

Teaser Rate – An attractive rate that is limited to a set amount of time in the mortgage term. Teaser rates generally last for three to twelve months.

Title – document showing a person’s right to possession or ownership of a property.

Title Insurance – A policy that protects the lender and buyer against loss which can result from inconsistencies in a property title.

Total Debt Service or TDS – The ratio in which Principal, Interest, Taxes, Heat and all outstanding monthly payments is divided by the gross monthly income of an individual. Most lenders require a borrower to have a TDS ratio of less than 40%.

Mortgage Glossary – S

Second Mortgage – A mortgage that takes second priority after the First Mortgage.

Self-Employed Mortgage – A mortgage that is given to a person who is employed for self. Self Employed individuals can qualify for as little as 5% down with little or no documentation required. Contact Urban Mortgage for more details.

Simple Interest – Interest calculated on principal balance, without compounding.

Square Footage – The measurement within a structure that is calculated by measuring each room by length and width.

Sub-prime Mortgage – A mortgage provided to borrowers with less than perfect credit.

Sweat Equity – Value of the work put into a house by its owner. Examples are; Renovations and repairs. This can be used in place of a down payment or as part of a down payment

Mortgage Glossary – R

Rate – The percentage rate paid by a borrower for the use of borrowed money

Rate Hold – the length of time a lender will hold a rate for. Lenders in Canada generally hold their mortgage rates for 120 days.

Real Estate – A piece of land including all natural resources (above and below the surface) and any permanent structure located on it.

Real Estate Agent – a person that is licensed by a real estate body in Canada to act on behalf of the seller or buyer.

Real Estate Attorney – A lawyer who specializes in Real Estate Law

Real Property – land or building that is permanently fixed.

Real Property Report – A legal survey of the property indicating the exact dimensions of the land and any permanent structure located on the land.

Refinancing – The paying off of one mortgage with another mortgage to save money with lower interest rates. Refinancing a mortgage can be great tool to consolidate high interest credit card debts, renovate a home, or for investment purposes.

Reserve Fund – Funds set aside or reserved by a condo association for major repairs and improvements to common areas in the complex.

Reverse Mortgage – A mortgage that allows elderly individuals access to their equity.

Mortgage Glossary – Q

Qualifying Ratios – Lender determined ratios in order to qualify for a mortgage loan. Most Canadian lenders use 32% for Gross Debt Servicing (GDS) and 40% for Total Debt Servicing (TDS) as a guideline.

Mortgage Glossary – P

Pre-Approval – A process to determine if a borrower is qualified to obtain a mortgage loan. Urban Mortgage can obtain a pre-approval at no cost for their clients.

Pre-qualification – The process in which a potential borrower obtains an estimate of the maximum purchasing price they may qualify for.

Prepayment Penalty – A fee charged to the borrower to pay off the loan before the end of the term.

Prime Lending Rate – The rate charged by chartered banks to creditworthy clients for a loan.

Prime Rate – A rate suggested by the Bank of Canada on which banks base their prime mortgage rate. This rate may fluctuate in accordance with the Prime Lending Rate.

Principal – The remaining balance on a mortgage loan.

Property Tax – A tax imposed by a municipality on real estate. The amount of tax is dependent on the municipalities assessed value on the property.

Purchase Agreement – A written and binding contract between the buyer and seller for a property. Also known as a purchase contract.