🚀Extra Payment Mortgage Calculator
See how much you can save with extra mortgage payments. Even small extra payments can save thousands in interest and years off your loan.
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Frequently Asked Questions
How much can I save with extra mortgage payments?
Extra payments can save you thousands in interest and years off your loan. For example, adding $200/month to a $300,000 mortgage at 6.5% can save over $80,000 and cut 7 years off a 30-year loan. The savings depend on your loan amount, interest rate, and extra payment amount.
Should I make extra principal payments or invest?
It depends on your situation. Extra mortgage payments guarantee a return equal to your interest rate (e.g., 6.5%). If you can earn more than that investing (historically 10% in stocks), investing may be better. However, paying off your mortgage provides guaranteed savings, reduces debt, and peace of mind. Consider your risk tolerance, other debts, and financial goals.
When should I make extra mortgage payments?
Make extra payments early in your loan when you're paying the most interest. Even small extra payments in the first few years can have a big impact. Pay extra when you have windfalls (bonuses, tax refunds), but ensure you have an emergency fund first and are contributing to retirement accounts, especially if your employer offers matching.
How do I make sure extra payments go to principal?
Contact your lender to ensure extra payments are applied to principal, not future payments. Some lenders require you to specify 'apply to principal' when making extra payments. Make extra payments separate from your regular payment and clearly mark them as 'principal only' to avoid confusion.
Are there penalties for making extra mortgage payments?
Most modern mortgages don't have prepayment penalties, but some loans (especially older ones or certain FHA/VA loans) may charge a fee for paying off the loan early. Check your mortgage documents for a 'prepayment penalty' clause. Even if there's a penalty, it usually only applies to large lump-sum payments or refinancing, not regular extra payments.
Financial Disclaimer
This calculator is provided for educational and informational purposes only. The results are estimates based on the information you provide and should not be considered as financial, legal, or tax advice.
Actual results may vary based on your specific circumstances, market conditions, and other factors. Always consult with qualified financial, legal, and tax professionals before making any financial decisions.
We make no guarantees about the accuracy, completeness, or reliability of the calculations. Use this tool at your own risk.