CALCULATE PAYOFF FOR YOUR MORTGAGE IS ONE OPTION TO USE EXCESS MONEY

2007-05-02 10:04:19

( Financial )



Lenders calculate payoff for your mortgage by adding the total unpaid principal balance and its corresponding interest payments. The amount is quite large compared to the amount of your monthly amortization. However, paying off your mortgage clears any future mortgage payment obligations on your part. It helps reduce debt you currently face.

Borrowers must first request a statement from their respective lenders where they indicate the amount of calculate payoff. Borrowers should be amenable to the amount stated in the statement. Thus, they should review and analyze it carefully. Borrowers should compare their own records of payments and compare it with the pay off statement provided by lenders. Clarify any discrepancy that you will notice between your records and the lenders’ records.

It is also best to calculate the other benefits you will gain when you request lender to do a calculate payoff of your mortgage. You must analyze the other benefits of mortgage payoff to assess whether availing it works for your long term advantage. Compare the benefits that you will generate when you use your money on a mortgage payoff versus investing it to higher earning investments. You can weigh the advantages of both options before finally deciding for a mortgage payoff.

Borrowers whose main objective is to clear up future financial obligations or reduce debt will choose mortgage payoff option. On the other hand, borrowers who want their money to grow will think twice of using a mortgage payoff. They will invest this money to investment tools that will earn them additional income and use this income to cover monthly amortization for their mortgage. Also, you face the risk of losing your money to the investment option you choose particularly if investment market is not performing well. When this happens you will have to pay off your monthly mortgage amortization from your own cash on hand.


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