Extra Mortgage Payment Calculator
Extra Monthly Payment
See the impact of making extra monthly payments on your mortgage
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Formula
Interest Saved = Total Interest (standard) - Total Interest (with extra payments). Each extra payment reduces principal, so less interest accrues each month.
Frequently Asked Questions
How much does an extra $100/month save on a mortgage?
On a $300,000 30-year mortgage at 6.5%, an extra $100/month saves roughly $55,000 in interest and pays off the loan about 4 years early. The higher your rate, the more impactful extra payments become.
Should I make extra mortgage payments or invest?
If your mortgage rate is below expected investment returns (historically ~7-10% for stocks), investing may yield more. However, paying off the mortgage provides a guaranteed return equal to your interest rate and reduces financial risk. Consider your risk tolerance and tax situation.
Do extra payments go to principal?
Yes, when you make extra payments, the additional amount goes directly toward the principal balance (make sure to specify this with your lender). This reduces the balance on which future interest is calculated, creating a compounding savings effect.
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