Extra Payment / Early Payoff

Interest saved and months shaved off with extra monthly or lump-sum payments.

Model how a little extra each month — or a one-time lump sum — accelerates payoff and cuts total interest.

Current Loan

Practical tips & common mistakes

Specify where extra goes

Principal-only extra payments shorten term. Make sure your servicer applies extras to principal — not prepaying next month's bill.

Skipping emergency fund

Prepaying a 4% mortgage while carrying 18% credit card debt is negative arbitrage. Kill high-rate debt first.

Biweekly is not magic

True biweekly (26 half-payments) equals one extra payment yearly. Some services charge fees for what you can automate free.

Opportunity cost

Compare extra mortgage paydown to retirement match and diversified investments — especially with low fixed rates.