Flu, I agree with HLS’s comment, you are not calculating interest right to come to that figure. You are charged based on your current balance, and in a year that balance will be lower. But you are assuming a stable balance over three years to get that 1% rate.
I’m guess your note rate is about 2.2% and is tax deductible. I’d invest that rather than do an early payoff.
I also am lazy and like the autodebit of my mortgage and having them pay taxes and insurance. Sounds like a payoff and setting up new ebills would take a solid hour of my time, better to do that in 3 years rather than now.
