Mortgage Payoff Calculator
See how extra payments can help you pay off your mortgage faster and save on interest.
How can I pay off my mortgage faster?
You can pay off your mortgage faster by making extra principal payments, either monthly, yearly, or as lump sums. Even small extra payments can significantly reduce your loan term and total interest paid. Other strategies include bi-weekly payments, refinancing to a shorter term, or making one extra payment per year.
How much can I save with extra payments?
The amount you save depends on your loan amount, interest rate, and extra payment amount. Even an extra $100/month on a 30-year mortgage can save tens of thousands in interest and years off your loan term. For example, an extra $200/month on a $300,000 loan at 6% can save over $100,000 in interest.
Are there penalties for early payoff?
Some mortgages have prepayment penalties, especially FHA and VA loans originated before 2014. Check your loan documents or contact your lender to confirm if your mortgage allows early payoff without penalties. Most conventional mortgages today don't have prepayment penalties.
Should I pay off my mortgage or invest?
This depends on your mortgage interest rate vs. expected investment returns, tax situation, and financial goals. If your mortgage rate is below 4-5%, investing might yield better returns. However, paying off your mortgage provides guaranteed savings and peace of mind.