Question 1

How much can I save by paying off my mortgage early?

Accepted Answer

On a $400,000 30-year loan at 6.75%, adding just $200/month to principal can cut your loan by about 6 years and save over $120,000 in interest. The exact savings depend on your loan balance, rate, and how much extra you add.

Question 2

Is it better to pay extra monthly or one lump sum per year?

Accepted Answer

Monthly extra payments save slightly more interest because the balance drops sooner and compounds less. But annual lump sums (like tax refunds or bonuses) are often easier to commit to and still save tens of thousands. Both beat paying only the minimum.

Question 3

Should I pay extra on my mortgage or invest the money instead?

Accepted Answer

It depends on your rate and tax situation. At today's rates (mid-6s to 7s), the guaranteed return from extra payments is often competitive with after-tax stock market returns. Paying down a HELOC or high-interest debt usually comes first.

Question 4

Will my lender penalize me for early payments?

Accepted Answer

Most conventional, FHA, VA, and USDA loans have no prepayment penalty. Some non-QM, DSCR, and portfolio loans do — check your note. We can review your current loan terms for free.

Question 5

How do I apply an extra payment to principal?

Accepted Answer

Most servicers accept extra principal online or by check, but you must explicitly mark it 'apply to principal' — otherwise it may be held for your next payment. Always confirm on your next statement that the balance dropped by the full extra amount.

Question 6

Does a biweekly payment schedule save money?

Accepted Answer

Paying half your mortgage every two weeks results in 26 half-payments per year — the equivalent of 13 full monthly payments instead of 12. That one extra payment per year typically shaves 4–6 years off a 30-year loan.

Question 7

Should I refinance to a shorter term instead?

Accepted Answer

If rates are meaningfully lower than your current rate, refinancing to a 15- or 20-year loan can achieve early payoff with a locked-in higher payment and a lower rate. If rates are higher, paying extra on your existing loan is usually better — you get the flexibility without the closing costs.

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