What about biweekly payments instead?+
A biweekly schedule produces 26 half-payments a year, which is 13 monthly payments rather than 12. Divide your monthly payment by 12 and enter that here to approximate the same effect without paying a service to set it up.
Why do early extras matter more than late ones?+
Interest is charged on the outstanding balance. A dollar of principal removed in year two avoids interest for twenty-five years; the same dollar in year twenty-five avoids almost none.
Does paying extra lower my monthly payment?+
No. It shortens the term instead. Reducing the payment requires a recast, which some servicers offer for a fee, or a refinance.
Should I pay extra or invest?+
The mortgage versus index investing calculator frames that trade directly. Paying down a mortgage is a guaranteed return at your rate, and investing is a higher expected return with real risk.
How much does an extra $100 a month save on a mortgage?+
On a 30-year, $300,000 loan at 6.5%, an extra $100 a month cuts about four years off the term and saves roughly $60,000 in interest. The earlier you start, the larger the saving.
Does paying extra lower my monthly payment?+
No. Extra payments shorten the term and reduce total interest, but the scheduled payment stays the same unless you recast or refinance the loan.
What is a mortgage recast?+
A recast re-amortizes the remaining balance over the original term after a lump-sum payment, lowering the monthly payment for a small fee. It suits people who want a lower payment rather than a shorter term, and it does not change the rate.
Should I make extra mortgage payments or save the money?+
Compare the mortgage rate with what a safe investment reliably returns. Paying down a loan above that bar is a guaranteed return at the mortgage rate; keep an emergency fund and retirement match first.
Are these numbers financial advice?+
No. They are educational estimates based on the inputs and assumptions on this page. Confirm important decisions with a qualified professional and your own documents.