Extra payments on a $250,000 mortgage at 6.5%
Amortization computed month by month.
$58,860
saved by paying $100 extra a month on a $250,000 30-year mortgage at 6.5% (base payment $1,580)
Savings by extra payment
| Extra | Paid off in | Interest saved | Time saved |
|---|---|---|---|
| +$50/mo | 27 yr 5 mo | $32,911 | 2 yr 7 mo |
| +$100/mo | 25 yr 4 mo | $58,860 | 4 yr 8 mo |
| +$200/mo | 22 yr 1 mo | $97,618 | 7 yr 11 mo |
| +$300/mo | 19 yr 8 mo | $125,514 | 10 yr 4 mo |
| +$500/mo | 16 yr 3 mo | $163,516 | 13 yr 9 mo |
| +$1,000/mo | 11 yr 6 mo | $213,459 | 18 yr 6 mo |
Principal and interest only; baseline interest $318,861. Confirm your lender applies extra payments to principal.
FAQ
How much does $100 extra a month save on a $250,000 mortgage at 6.5%?
About $58,860 in interest, and the loan is paid off in 25 yr 4 mo instead of 30 years.
Is it better to invest instead?
Prepaying earns a guaranteed 6.5% return. Investing may earn more over long periods but with risk; many people first capture any 401(k) match and build an emergency fund.