4.7

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4.8

Make extra payments each month, pay off your loan faster, and save thousands in overall interest. You will be surprised how fast the savings can add up by paying a bit more each month.

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Standard Payment

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Refinance your loan today!

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Paying an additional a month will save you with an earlier payoff schedule of years and months.

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Calculator Definitions

Interest Rate

The annual cost to borrow money from a lender based on a percentage of the loan amount. Interest rates exclude mortgage "points" and fees charged to get the loan.

Length of Loan

The original fixed length of time (usually expressed in years) that a borrower agrees to pay on a mortgage loan until it is paid in full. Common loan terms are 15, 20, and 30 years.

Original Loan Amount

The original amount borrowed from a lender to obtain a mortgage loan. This represents the total mortgage amount including fees, points, etc… as stated on the closing disclosure.

Total Savings

The combined total amount saved on interest and principal over the life of the loan. This amount excludes additional savings on fees or property tax as a result of a shorter payoff date.

Payoff Schedule

The amount of time saved on the current loan schedule by making additional payments toward the principal mortgage balance.

Additional Principal Payment

Extra payments applied to the mortgage above the monthly requirement. These payments are typically used to settle existing late charges or fees before being applied to the principal.

Is making extra mortgage payments a good idea?

It ultimately depends on your situation and financial goals. If you plan to stay in your home for years to come, you may be able to shorten your term by several years. However, borrowers who intend to move in the next few years likely won’t benefit much from making extra mortgage payments.

Are there other ways to save on interest?

Yes! Consider applying any extra funds at the end of the month toward your loan balance. Even paying an extra $50 or $100 a month allows you to pay off your mortgage faster.

Another idea is to refinance to a 15-year mortgage. Though your payments will be a bit higher, your overall savings will be greater. The shorter loan term also means that you’ll pay off your home loan in a fraction of the time.

Talk to a mortgage consultant

The thought of making extra principal payments on your mortgage can be stressful. That’s why it’s worth looking into a 15-year mortgage if you have a stable income. Contact one of our mortgage consultants and see how much this move could save you in the long run.