Extra payments go straight to principal. That cuts your balance faster, saves on interest, and moves your payoff date forward. See exactly what it does to your loan.
Your Payoff Comparison
This calculator provides estimates for informational purposes only. Results are not a commitment to lend. Contact a licensed mortgage professional for accurate figures. Loan products and rates subject to change.
Sometimes a lower rate saves more than extra payments. Jordan can run both scenarios against your actual file and tell you which move makes more financial sense.
Early in the loan, most of your regular payment is covering interest rather than principal. That means extra dollars go further in the first several years, cutting your balance and future interest charges more aggressively than they would near the end of the loan.
If your rate is above what you'd earn through conservative investing, extra payments are often a strong move. Paying down a 7% mortgage is effectively a 7% guaranteed return on that money. That's worth taking seriously.
If you're within 10 years of your payoff date, the psychological and financial finish line is close. Extra payments can shorten it in a meaningful way, and getting out of a mortgage payment early changes what you can do with your monthly cash flow. See how your mortgage basics affect the full picture.
The honest counterargument: if your rate is low, say below 4%, and you have access to solid investment returns, the math may favor putting that money to work elsewhere instead. Both strategies are valid. The right answer depends on your rate, your timeline, and your financial situation. A quick conversation with a lender can help you run both scenarios on your actual numbers. You can also compare the impact of a refinance vs. extra payments using our refinance calculator.
Whether it's extra payments, a refinance, or a better rate, Jordan can show you the fastest path.
