How much extra should I pay on my mortgage each month?

Even $50–$100/month extra makes a measurable difference. $100/month on a $300K mortgage at 6.7% saves about $47,000 in interest and cuts 4 years off the loan. $200/month saves roughly $85,000 and 7 years. The best amount is whatever fits your budget consistently — consistency beats size.

Is biweekly mortgage payment better than monthly?

Yes. Biweekly payments result in 26 half-payments per year — the equivalent of 13 full monthly payments instead of 12. That one extra payment per year on a $300K mortgage at 6.7% saves approximately $56,000 in interest and pays off the loan about 4.5 years early. But the same effect can be achieved by simply adding 1/12 of your payment as extra principal each month.

Do mortgages have prepayment penalties?

Most modern conventional, FHA, and VA mortgages have no prepayment penalties. However, some non-qualified mortgages (non-QM loans) or older loans may carry them. Always check your loan documents before making large extra payments — look for the prepayment clause in your note.

Should I pay off my mortgage early or invest instead?

At 6.7%, paying off your mortgage delivers a guaranteed, tax-free 6.7% return. That's competitive with long-term stock market returns (7%–10%) but comes with zero risk. A balanced approach: prioritize employer 401(k) matching first (100% instant return), then split extra cash between mortgage prepayment and investing.

How Extra Payments Slash Your Mortgage: The Math

Just $100/month extra on a $300,000 mortgage at 6.7% saves $47,318 in interest and pays off the loan roughly 4 years early. Scale up to $200, $300, or $500/month extra, and the numbers get dramatic fast. Here's the complete math — no fluff, just the real savings at every level.

The Baseline: $300K at 6.7%, 30-Year Fixed

Without any extra payments:

Monthly payment: $1,936

Total interest: $396,960

Total cost: $696,960

Payoff: 30 years (2056)

You pay more in interest than the house cost. Every extra dollar changes that math.

Extra Payment Impact: The Complete Table

Extra/Month Interest Saved Years Cut Payoff Age

$50 $25,040 2.1 yrs 27.9 yrs

$100 $47,318 3.8 yrs 26.2 yrs

$200 $82,460 6.6 yrs 23.4 yrs

$300 $108,990 8.9 yrs 21.1 yrs

$500 $149,150 12.2 yrs 17.8 yrs

$1,000 $211,740 16.9 yrs 13.1 yrs

The relationship is super-linear. $500/month saves 6× more interest than $50/month, even though it's only 10× the payment. That's because every extra dollar reduces the principal that future interest compounds on — a snowball that accelerates with time.

The Biweekly Payments Hack

Instead of paying $1,936 once a month, pay $968 every two weeks. Since there are 52 weeks in a year, you'll make 26 half-payments — equivalent to 13 full payments instead of 12. That one extra payment each year:

Saves ~$56,000 in interest
Cuts ~4.5 years off the loan
Requires no budget changes — you're just timing payments differently

Warning: Some lenders charge setup fees for formal biweekly programs ($200–$400). You can achieve exactly the same result for free by dividing your monthly payment by 12 and adding that amount as extra principal each month.

The Lump Sum Strategy

One-time windfalls — tax refunds, bonuses, inheritances — make excellent extra payments because they hit principal all at once. A $10,000 lump sum applied in year 2 of a $300K mortgage at 6.7%:

Interest saved: ~$32,000

Time cut: ~2.2 years

A $10,000 lump sum saves $32,000 because it reduces principal for 28 remaining years. The earlier the lump sum, the bigger the multiplier. A $10K payment in year 1 saves about $35,000; the same $10K in year 15 saves only $18,000.

Invest vs. Pay Off: Which Wins?

This isn't theoretical — it's math:

Mortgage prepayment: Guaranteed 6.7% return, tax-free, zero risk, reduces monthly obligations
Stock market investing: Historical 7%–10% average, taxable, volatile, long-term horizon required

At 6.7%, the risk-adjusted case for prepayment is strong. Many financial planners recommend a split: get your full 401(k) match first (guaranteed 50%–100% return), then split leftover cash between mortgage and investing.

Model Your Exact Payoff

The numbers above use a $300K loan at 6.7%. Your mortgage is different. Use our payoff calculator to enter your exact balance, rate, extra payment amount, or a one-time lump sum — and see your personalized interest savings, new payoff date, and an amortization schedule showing every month until you're mortgage-free.

Calculate Your Mortgage Payoff →