See exactly how much interest you save and how many years you cut off your mortgage with extra payments.
Standard Payoff
360 months
Jun 2056
Total Interest: $400,321
With Extra Payments
360 months
Jun 2056
Total Interest: $400,321
| Scenario | Months | Interest | Saved |
|---|---|---|---|
| Standard | 360 | $400,321 | — |
| +$100/mo | 311 | $335,301 | $65,020 |
| +$500/mo | 209 | $210,577 | $189,744 |
| Biweekly | 290 | $309,317 | $91,004 |
| Month | Payment | Principal | Interest | Balance |
|---|---|---|---|---|
| 1 | $1,946.00 | $258.50 | $1,687.50 | $299,741.50 |
| 2 | $1,946.00 | $259.95 | $1,686.05 | $299,481.55 |
| 3 | $1,946.00 | $261.42 | $1,684.58 | $299,220.13 |
| 4 | $1,946.00 | $262.89 | $1,683.11 | $298,957.24 |
| 5 | $1,946.00 | $264.37 | $1,681.63 | $298,692.88 |
| 6 | $1,946.00 | $265.85 | $1,680.15 | $298,427.02 |
| 7 | $1,946.00 | $267.35 | $1,678.65 | $298,159.68 |
| 8 | $1,946.00 | $268.85 | $1,677.15 | $297,890.82 |
| 9 | $1,946.00 | $270.36 | $1,675.64 | $297,620.46 |
| 10 | $1,946.00 | $271.88 | $1,674.12 | $297,348.58 |
| 11 | $1,946.00 | $273.41 | $1,672.59 | $297,075.16 |
| 12 | $1,946.00 | $274.95 | $1,671.05 | $296,800.21 |
On a $300,000 mortgage at 6.75% for 30 years, you'll pay roughly $394,000 in total interest over the life of the loan — more than the original loan amount. Making extra payments directly reduces your principal, slashing future interest charges dramatically.
Switching to biweekly payments (half your monthly payment every two weeks) results in 26 half-payments per year, equivalent to 13 full monthly payments instead of 12. That extra payment each year typically cuts 4–6 years off a 30-year mortgage and saves tens of thousands in interest.
Before making extra payments, verify your loan has no prepayment penalty (most post-2014 mortgages don't). Always specify that extra payments should be applied to principal, not future payments. Consider whether high-interest debt (credit cards, personal loans) should be paid off first, as that interest is not tax-deductible and typically much higher.