Extra payments on a $250,000 mortgage at 6%
Amortization computed month by month.
$51,572
saved by paying $100 extra a month on a $250,000 30-year mortgage at 6% (base payment $1,499)
Savings by extra payment
| Extra | Paid off in | Interest saved | Time saved |
|---|---|---|---|
| +$50/mo | 27 yr 6 mo | $28,663 | 2 yr 6 mo |
| +$100/mo | 25 yr 6 mo | $51,572 | 4 yr 6 mo |
| +$200/mo | 22 yr 3 mo | $86,233 | 7 yr 9 mo |
| +$300/mo | 19 yr 11 mo | $111,459 | 10 yr 1 mo |
| +$500/mo | 16 yr 5 mo | $146,128 | 13 yr 7 mo |
| +$1,000/mo | 11 yr 8 mo | $192,087 | 18 yr 4 mo |
Principal and interest only; baseline interest $289,595. Confirm your lender applies extra payments to principal.
FAQ
How much does $100 extra a month save on a $250,000 mortgage at 6%?
About $51,572 in interest, and the loan is paid off in 25 yr 6 mo instead of 30 years.
Is it better to invest instead?
Prepaying earns a guaranteed 6% return. Investing may earn more over long periods but with risk; many people first capture any 401(k) match and build an emergency fund.