Extra payments on a $250,000 mortgage at 7%
Amortization computed month by month.
$66,780
saved by paying $100 extra a month on a $250,000 30-year mortgage at 7% (base payment $1,663)
Savings by extra payment
| Extra | Paid off in | Interest saved | Time saved |
|---|---|---|---|
| +$50/mo | 27 yr 4 mo | $37,584 | 2 yr 8 mo |
| +$100/mo | 25 yr 2 mo | $66,780 | 4 yr 10 mo |
| +$200/mo | 21 yr 11 mo | $109,800 | 8 yr 1 mo |
| +$300/mo | 19 yr 6 mo | $140,409 | 10 yr 6 mo |
| +$500/mo | 16 yr 1 mo | $181,739 | 13 yr 11 mo |
| +$1,000/mo | 11 yr 5 mo | $235,604 | 18 yr 7 mo |
Principal and interest only; baseline interest $348,772. Confirm your lender applies extra payments to principal.
FAQ
How much does $100 extra a month save on a $250,000 mortgage at 7%?
About $66,780 in interest, and the loan is paid off in 25 yr 2 mo instead of 30 years.
Is it better to invest instead?
Prepaying earns a guaranteed 7% return. Investing may earn more over long periods but with risk; many people first capture any 401(k) match and build an emergency fund.