Extra payments on a $300,000 mortgage at 6.5%
Amortization computed month by month.
$60,995
saved by paying $100 extra a month on a $300,000 30-year mortgage at 6.5% (base payment $1,896)
Savings by extra payment
| Extra | Paid off in | Interest saved | Time saved |
|---|---|---|---|
| +$50/mo | 27 yr 10 mo | $33,582 | 2 yr 2 mo |
| +$100/mo | 26 yr 0 mo | $60,995 | 4 yr 0 mo |
| +$200/mo | 23 yr 1 mo | $103,449 | 6 yr 11 mo |
| +$300/mo | 20 yr 10 mo | $135,115 | 9 yr 2 mo |
| +$500/mo | 17 yr 6 mo | $179,759 | 12 yr 6 mo |
| +$1,000/mo | 12 yr 9 mo | $241,162 | 17 yr 3 mo |
Principal and interest only; baseline interest $382,633. Confirm your lender applies extra payments to principal.
FAQ
How much does $100 extra a month save on a $300,000 mortgage at 6.5%?
About $60,995 in interest, and the loan is paid off in 26 yr 0 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.