$
What you owe now
%
$
$
Paid now
Mortgage-free sooner by
4 years, 9 months
Paid off in 20 years, 3 months instead of 25 years
- Interest saved
- $68,043
- Monthly payment with extra
- $2,225.62
- Interest you’ll pay$239,645
- Interest saved$68,043
What this means
Every extra payment goes straight off what you owe, so you stop paying interest on it. That’s like a guaranteed return of 6.5%, your mortgage rate.
Clear debts with higher rates, like credit cards, first, and keep an emergency fund before overpaying. Check your lender’s limits on overpayments without a fee.
Next step
With and without overpaying
| Without | With | |
|---|---|---|
| Monthly payment | $2,025.62 | $2,225.62 |
| Lump sum now | – | – |
| Time left | 25 years | 20 years, 3 months |
| Total interest | $307,687 | $239,645 |
| Total paid | $607,687 | $539,645 |
Before you overpay
Most US mortgages have no prepayment penalty, but check your loan documents. Ask your lender to put extra payments towards the principal.
Keep some savings for emergencies first. And if your savings earn more after tax than your mortgage rate, saving can beat overpaying.
$26,707$13,354$0
136912151821
PrincipalInterest
Assumptions in this estimate
- Your payment stays the same, so overpaying shortens the mortgage. Some lenders lower your payment instead, which saves less interest.
- Assumes the interest rate stays the same for the rest of the mortgage.
- Fees or charges for overpaying aren’t included.