Extra Mortgage Payments: How Much Interest You Can Save

Adding a fixed amount to each monthly payment can shorten your loan by years and cut the interest you pay.

Example: $320,000 loan at 6.5%, 30 years

The standard payment is $2,022.62 per month (principal and interest). Adding $200 per month goes straight to principal.

• Payoff time: about 23.4 years instead of 30
• Total interest saved: about $105,400

Your lender may apply extra payments to principal only if you say so, so confirm how they handle it.

Before you add extra payments

Build an emergency fund first, and make sure you don't carry higher-interest debt like credit cards. Check whether your loan has a prepayment penalty, which is uncommon on standard mortgages but worth confirming.

Run your own numbers