Mortgage ConsultMortgage Guidance with Kit Noles & Mike Graves

Calculator

Extra Principal Payment Calculator

See how extra monthly principal shortens your loan and how much interest it saves.

$

Your current balance, or the original amount for a new loan

%
$
$

Estimated interest saved

—

    Estimates only, based on the numbers you enter. Not a Loan Estimate, rate quote, offer or commitment to lend. Actual terms depend on credit, property, program and market conditions.

    How extra principal works

    Any amount you pay above the scheduled payment, applied to principal, reduces the balance that interest is charged on. That's why even modest extra payments early in a loan can shorten it by years. This calculator applies the extra amount every month and the one-time payment immediately.

    Before you prepay

    Confirm with your servicer how to designate extra payments as principal, and check your note for any prepayment penalty (common on some investor and Non-QM loans, rare on standard owner-occupied loans). Paying ahead doesn't lower your required monthly payment on most loans, and it's worth weighing against emergency savings and higher-interest debt. See the refinance calculator to compare a shorter term instead.

    Common questions

    Do extra mortgage payments really save money?

    Yes, when they're applied to principal. Every extra dollar reduces the balance interest is charged on, so payments early in the loan save the most. Ask your servicer how to mark payments as principal-only.

    Is there a penalty for paying off a mortgage early?

    Most standard owner-occupied loans don't have one, but some investor and Non-QM loans do. Check your note or Closing Disclosure for a prepayment penalty before you prepay.

    Want real numbers for your scenario?

    I'll run your situation against actual program guidelines and walk you through every line.

    Start Your ApplicationTalk to Kit and Mike

    Applications open in a new tab on Neighborhood Mortgage's secure portal.