Extra mortgage payments calculator

Yes, as long as you specify it as an extra principal payment with your lender, which most allow through your normal payment portal. Extra principal payments do not reduce your required monthly payment, they shorten how many payments remain, which is where the real savings come from.

Dollar for dollar, a lump sum applied as early as possible, right after closing, saves the most, since that money stops earning interest for every remaining month of the loan at once. A recurring monthly amount saves less per dollar since each installment starts earning its savings later, but it usually beats a lump sum in total dollars saved if you keep it up for the life of the loan, since it never stops adding new dollars. Use this calculator with both fields to compare your actual numbers.

This depends on your mortgage rate versus what you expect to earn investing, and how much you value the certainty of a paid off home. There is no universally right answer, this calculator shows the mortgage side of that comparison clearly so you can weigh it against your own investing plan.

Not always, some lenders apply extra amounts to next month's payment instead of principal unless you specify otherwise. Always confirm with your servicer that an extra payment is being applied directly to principal, since that is the only way it shortens your loan.

Most modern mortgages have no prepayment penalty, but it is worth confirming in your loan documents, since a small number of loans, particularly some older or non standard ones, still include one. If yours does, factor that cost into whether extra payments still make sense.