Extra Mortgage Payments: Save Thousands & Years

Making extra payments toward your mortgage principal can dramatically reduce the total interest you pay and shorten your loan term. Even small additional amounts make a significant difference.

How Extra Payments Work

Extra payments go directly toward reducing your principal balance. This means less interest accrues in future months, creating a compounding savings effect over the life of your loan.

Example: $300,000 Loan at 6.75%, 30 Years

• $100/month extra: Save approximately $63,000 in interest. Pay off 5 years early.
• $200/month extra: Save approximately $104,000 in interest. Pay off 9 years early.
• $500/month extra: Save approximately $168,000 in interest. Pay off 15 years early.

Biweekly Payment Strategy

Paying half your monthly payment every two weeks results in 26 half-payments (13 full payments) per year instead of 12. This one extra payment per year can shave 4-5 years off a 30-year mortgage.