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How do I pay off my mortgage early?
How do I pay off my mortgage early?

This article describes ways to model paying off your home early.

Nancy Gates avatar
Written by Nancy Gates
Updated over 2 months ago

There are two ways to model paying off your mortgage early.

  1. Increase your total monthly payments toward your mortgage

  2. Make a lump-sum transfer (PlannerPlus feature)

Increase your total monthly payments

NewRetirement automatically calculates your mortgage payment based on your mortgage balance and interest entered. Any amount beyond the calculated interest payment will be applied toward the principal.

Step 2: Open the Primary Residence section

Step 3: Press on the โœŽ (pencil) to edit

Step 4: Increase the monthly payment field

Step 5: You can check the Estimated Payoff Date below the ZIP Code field and adjust your monthly payment to achieve your desired payoff date

Step 6: Press Save when complete

Make a lump-sum transfer to fund your mortgage paydown.

You can apply funds from a withdrawal towards mortgages. Any amount in addition to your monthly mortgage payment will be applied toward the principal.

Step 1: Go to My Plan > Money Flows

Step 2: Open the Transfers section

Step 3: Press "Add a Transfer +"

Step 4: Designate the From account (the account that will be tapped to pay down the mortgage)

Step 5: Designate the To account as the mortgage

Step 6: Enter a payment amount in future dollars (i.e. the amount you expect to transfer at the time of transfer)

Step 7: Specify at what age this transfer will take place

Step 8: Add a descriptive note

Step 9: Press Save

To check your payoff:

PlannerPlus members can go to the Expense Projection chart on Insights > Income & Expenses to see the year mortgage payments will end and make transfer/monthly payment adjustments accordingly.

NOTE: The estimated payoff date in the mortgage data entry field will not update when transfers are used to pay off the mortgage.

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