Extra payments on a $400,000 mortgage at 6.5%
Amortization computed month by month.
$63,917
saved by paying $100 extra a month on a $400,000 30-year mortgage at 6.5% (base payment $2,528)
Savings by extra payment
| Extra | Paid off in | Interest saved | Time saved |
|---|---|---|---|
| +$50/mo | 28 yr 4 mo | $34,465 | 1 yr 8 mo |
| +$100/mo | 26 yr 10 mo | $63,917 | 3 yr 2 mo |
| +$200/mo | 24 yr 5 mo | $111,892 | 5 yr 7 mo |
| +$300/mo | 22 yr 5 mo | $149,581 | 7 yr 7 mo |
| +$500/mo | 19 yr 5 mo | $205,557 | 10 yr 7 mo |
| +$1,000/mo | 14 yr 9 mo | $288,297 | 15 yr 3 mo |
Principal and interest only; baseline interest $510,178. Confirm your lender applies extra payments to principal.
FAQ
How much does $100 extra a month save on a $400,000 mortgage at 6.5%?
About $63,917 in interest, and the loan is paid off in 26 yr 10 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.