Extra mortgage payments explained

Last updated: 2026-08-14

An extra mortgage payment usually works best when it is applied directly to principal. That lowers the balance before future interest is calculated, so the saving compounds over the remaining schedule.

Timing matters

The same extra amount usually saves more interest when paid earlier, because it has more future periods in which to stop interest from accruing.

Recurring vs one-time extras

A small recurring extra can steadily shorten the schedule. A one-time lump sum can remove a block of future interest at once. Both need to be modeled against the actual balance path.

Use the calculator

Use the mortgage extra payment calculator to compare baseline and accelerated schedules. Use the mortgage payoff calculator for payoff-focused scenarios.