09/01/2026
Making extra principal payments could save you thousands of dollars-and help you become mortgage-free years sooner! m
Here's an example using a $500,000, 30-year fixed mortgage at 5.99% with an estimated monthly principal and interest payment of $2,994.54:
V Add $300 per month: Save approximately $140,449 in interest and pay off the mortgage about 6 years and 3 months sooner.
V Pay an extra $10,000 each year: Save approximately $257,885 in interest and pay off the mortgage about 12 years sooner.
V Make one early $20,000 principal payment: Save approximately $89,241 in interest and pay off the mortgage about 3 years sooner.
V Make one extra mortgage payment every year:
Save approximately $117,795 in interest and pay off the mortgage about 5 years and 3 months sooner.
Small additional payments can make a major difference-especially when you start early. Before paying extra, confirm that your mortgage servicer will apply the money directly toward your principal.
Mohammed Rasel
Licensed Real Estate Agent
Cell:917-470-3438