U.S. MORTGAGE GUIDE

What an extra $100 a month can do for your mortgage

Adding $100 to a mortgage payment can reduce the balance a little earlier every month. The dollar benefit depends on your remaining balance, interest rate and years left, so the same $100 has a different effect for every homeowner.

Why the extra payment matters

Mortgage interest is generally calculated from the unpaid principal. If your servicer applies the extra money to principal, the next month begins with a smaller balance. Repeating that process may reduce both remaining interest and payoff time.

Test your own number

Enter your current loan details, choose an extra payment of $100 every month, and compare it with no extra payment. Treat the result as a planning estimate, not a payoff quote.