How much do extra mortgage payments save me?

Short answer: Extra $100/month on $500k at 7% saves ~$52,000 and cuts 3 years. Early payments save the most.

What this actually means in plain English

Every extra dollar you pay early saves many dollars later because interest compounds. An extra $100 per month on a $500,000 loan at 7% saves about $52,000 and pays off the loan 3 years early. Pay lump sums when you get bonuses. The earlier you make extra payments, the more they save.

Key Facts

Extra payments reduce principal faster
Less principal = less interest charged daily
$100/month extra = ~$52,000 saved over 30 years
Lump sums (bonuses, tax refunds) have big impact
First 5 years of mortgage: extra payments save the most

Example

Loan Amount: $500,000

Rate: 7.0%

Term: 30 years

Extra Per Month: $100

Interest Saved: $52,000

Term Reduced: 3 years

New Payoff Date: 27 years

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