How much could extra payments save me?

The answer depends on your remaining balance, rate, amortization and the size and timing of the extra payments. Extra principal payments reduce the balance on which future interest is charged, which can shorten the amortization significantly.

Interest savings grow when additional payments are made earlier because the principal remains lower for more of the mortgage’s life. A payoff calculator can compare your existing schedule with lump sums or increased regular payments.

Both reduce principal. A lump sum has an immediate effect, while higher regular payments spread the extra cash out over time; the better choice depends on cash flow and your mortgage’s prepayment privileges.

Many closed mortgages allow specified annual lump sums or payment increases without a penalty, but the limits vary by contract. Paying more than the permitted amount or breaking the mortgage early can trigger a prepayment charge.

They can. Accelerated biweekly payments typically result in the equivalent of an extra monthly payment over a year, which reduces principal faster than a standard monthly schedule if the payment amount is structured that way.