Extra payments on a $600,000 mortgage at 6.5%
Amortization computed month by month.
$67,163
saved by paying $100 extra a month on a $600,000 30-year mortgage at 6.5% (base payment $3,792)
Savings by extra payment
| Extra | Paid off in | Interest saved | Time saved |
|---|---|---|---|
| +$50/mo | 28 yr 11 mo | $35,402 | 1 yr 1 mo |
| +$100/mo | 27 yr 10 mo | $67,163 | 2 yr 2 mo |
| +$200/mo | 26 yr 0 mo | $121,990 | 4 yr 0 mo |
| +$300/mo | 24 yr 5 mo | $167,837 | 5 yr 7 mo |
| +$500/mo | 21 yr 10 mo | $240,674 | 8 yr 2 mo |
| +$1,000/mo | 17 yr 6 mo | $359,518 | 12 yr 6 mo |
Principal and interest only; baseline interest $765,267. Confirm your lender applies extra payments to principal.
FAQ
How much does $100 extra a month save on a $600,000 mortgage at 6.5%?
About $67,163 in interest, and the loan is paid off in 27 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.