What could extra payments save you?

Yes — often a surprising one. Extra payments go straight to principal, and every dollar of principal you remove stops accruing interest for the rest of the loan. Because interest compounds over decades, even a modest extra amount each month early in the loan can shave years off the payoff and a large sum off total interest.

Both help, and this calculator lets you test each. A lump sum today removes principal immediately, so it works on the entire remaining life of the loan. A monthly extra builds momentum over time. Dollar for dollar, money applied earlier saves more interest — but the best plan is the one you will actually stick to.

No — and this is the most common misunderstanding about them. Extra payments reduce your balance and shorten how long you pay, but the required monthly amount stays exactly the same. You finish years earlier and pay far less interest; you do not get relief this month. If lowering the monthly payment is the actual goal, the levers are different: refinancing to a lower rate or a longer term, removing mortgage insurance once you have enough equity, or asking your servicer about a recast — some will re-amortise your loan around a large principal payment, which does lower the monthly. Our refinance calculator tests the first of those, and we are happy to talk through the others.

Not always. If you carry higher-interest debt, are short on emergency savings, or would give up an employer retirement match to do it, those usually come first. Every extra dollar you put toward the mortgage earns you exactly your loan’s rate in avoided interest — whether that is your best available use of the money depends on your situation, and it is worth talking through.