Adding even $100 a month to your mortgage principal can shave years off your loan and save tens of thousands in interest. See the exact impact for your loan.
| Year | Balance (base) | Balance (with extra) | Interest saved (cum.) |
|---|
It depends on your rate vs. expected investment returns. If your mortgage is above ~6%, extra principal payments give you a guaranteed after-tax return equal to your rate, hard to beat. If your rate is below 4%, investing typically wins mathematically, though prepayment still offers peace of mind.
Send the extra amount separately (or note it explicitly) with instructions "apply to principal only." Some servicers apply extra to the next payment (interest + escrow) unless you specify.
Yes. Paying half your mortgage every two weeks results in 26 half-payments = 13 monthly payments per year (one extra). That extra payment applied to principal typically knocks 4–6 years off a 30-year loan.