Extra Payments to Your Mortgage: How Much You Save
Quick answer
Extra payments go straight to principal, so you owe less, pay less interest, and finish the loan sooner. Even a small extra amount each month can save a lot over 30 years.
Calculate my total house paymentExample: $200 extra per month
On a $482,500 loan at 6.25% for 30 years, paying $200 extra each month saves about $109,470 in interest and pays the loan off about 4 years and 9 months early.
Two ways to pay extra
Extra monthly payment — a set amount added to every payment.
Lump-sum payment — a one-time amount, like a bonus or tax refund. In the calculator, add the year, month and amount, then tap the check mark to include it.
Before you pay extra
Ask your lender to apply the extra money to principal, and check that your loan has no prepayment penalty.
Extra payments also help you reach 80% of the original price sooner, when you can ask to remove PMI.
Common questions
Does an extra payment lower my monthly payment?
Usually not — it shortens the loan instead. Some lenders offer a recast that lowers the payment after a large lump sum.
Is it better to pay extra monthly or once a year?
Paying earlier saves a bit more interest, but both help. The calculator shows the savings for each.
Examples are estimates for education only, not financial, tax or legal advice. Your lender's numbers may differ.