How to use this calculator
Extra principal payments can be powerful because mortgage interest is calculated on the remaining balance. When you reduce principal earlier, every future month has less balance accruing interest. That compound effect is why even a modest extra monthly amount can shorten the loan and reduce total interest over time.
A steady extra monthly amount is predictable and easy to budget, while a one-time lump sum has the most impact when paid earlier in the loan. You can combine both: a recurring extra payment plus a lump sum at a specific month, such as a bonus, tax refund, or the sale of another asset.
Before paying extra, confirm whether your loan has a prepayment penalty, especially for some Non-QM or DSCR loans. Also make sure the servicer applies extra money to principal, not to the next scheduled payment. Paying early is a math decision and a liquidity decision; compare the guaranteed interest savings with your emergency fund, other debt, and investment priorities.
For illustration purposes only. Not a rate quote, loan offer, or commitment to lend. Contact us for a personalized quote.