Extra payments on a $500,000 mortgage at 6.5%
Amortization computed month by month.
$65,822
saved by paying $100 extra a month on a $500,000 30-year mortgage at 6.5% (base payment $3,160)
Savings by extra payment
| Extra | Paid off in | Interest saved | Time saved |
|---|---|---|---|
| +$50/mo | 28 yr 8 mo | $35,019 | 1 yr 4 mo |
| +$100/mo | 27 yr 5 mo | $65,822 | 2 yr 7 mo |
| +$200/mo | 25 yr 4 mo | $117,720 | 4 yr 8 mo |
| +$300/mo | 23 yr 7 mo | $159,983 | 6 yr 5 mo |
| +$500/mo | 20 yr 10 mo | $225,192 | 9 yr 2 mo |
| +$1,000/mo | 16 yr 3 mo | $327,032 | 13 yr 9 mo |
Principal and interest only; baseline interest $637,722. Confirm your lender applies extra payments to principal.
FAQ
How much does $100 extra a month save on a $500,000 mortgage at 6.5%?
About $65,822 in interest, and the loan is paid off in 27 yr 5 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.