Mortgage Payoff Calculator
See how extra payments can help you pay off your mortgage faster and save thousands in interest.
Without Extra Payments
With $$200.00/mo Extra
How Extra Mortgage Payments Save Money
Extra mortgage payments reduce your principal balance faster, which means less interest accrues each month. This can save you tens of thousands of dollars and years off your loan term, providing financial freedom sooner.
Frequently Asked Questions
How do extra mortgage payments work?
Extra payments go directly toward your principal balance. Since interest is calculated on the remaining balance, reducing it faster means less interest accrues over the life of the loan, potentially saving tens of thousands of dollars.
Is it better to make extra payments or invest?
If your mortgage rate is lower than expected investment returns (e.g., 6.5% mortgage vs 8-10% market returns), investing may be mathematically better. However, extra mortgage payments provide guaranteed savings and peace of mind.
How much can I save with extra payments?
Even $200 extra per month on a $250,000 mortgage at 6.5% can save over $80,000 in interest and pay off the loan 7+ years early. The savings depend on your balance, rate, and extra payment amount.
Should I refinance instead of making extra payments?
Refinancing can lower your rate, but comes with closing costs (typically 2-5% of loan balance). Extra payments have no cost and provide immediate savings. Compare both options using our calculators.
Disclaimer
This calculator is for informational purposes only and should not be considered financial advice. Consult with a qualified financial professional before making any financial decisions.