08:15AM | 12/23/05
Member Since: 11/15/05
70 lifetime posts

Could someone please tell me (a 30-year loan) what the effect will be of making 1, 2 or 3 extra payments on a home/mortgage loan per year?

When extra payment is made, does one pay both P&I or just the P portion?


09:17AM | 12/24/05
Member Since: 04/25/05
1915 lifetime posts
Mortgage interest is calculated each month on the amount of the outstanding balance at that time.

Then for any payments the amount of interest is deducted from the payment and the remainder is used to reduce the principle.

Then the next month the principle will be lower and thus the amount of instrest is lower and more the payment goes towards the principle.

If you pay extra then there is that much more money that goes towards reducing the princple and greatly accelerates the time when the mortgage is paid off.

You can find any number of mortgage interest calculators online that should allow you to play with different combinations to see the affect.


01:31PM | 04/21/08
Member Since: 04/11/08
2 lifetime posts
1 month extra takes @ 8 yrs off a 30 yr mtg.

Steve Verrier


10:40AM | 05/12/11
Member Since: 05/12/11
2 lifetime posts
I'm sure the OP has already decided what to do, but in case anyone else is reading this, I'm posting this reply.

An additional 1 month mortgage payment applied to the principal DOES NOT take 8 yrs off a 30 year mortgage. Use any of the online mortgage calculators (like this one: ) to see the effect based on your specific mortgage and when you are making the extra payment. In the test I ran, with a 350,000 original mortgage and an additional $1987 payment right at the 5-yr mark, this took 3 months and $5830 off the 30-year mortgage. [Steve, whoever you are, I hope your signature doesn't mean you are in finance ... or maybe I should get my mortgage from you & make a few extra payments!]

Whatever you do, make sure you check with your lender BEFORE you make the additional payment. You should be very clear about how you want the additional payment applied. Unless you specify (& it's allowed under your mortgage rules) you may just end up prepaying an additional "regular" month. If it doesn't save you time & money, you may be better off investing that extra cash.
Click to reply button
Inspiration banner


Post a reply as Anonymous

Photo must be in JPG, GIF or PNG format and less than 5MB.

Reply choose button


Post new button or Login button

To test the boundaries of small-footprint living, interior designer Jessica Helgerson moved her family to a 540-square-foo... Filling an underutilized area beneath the stairs is a smart way to save space. Doing so with a stash of wood, however, is ... The Audubon Society inspired wallpaper in this Adirondack-styled mudroom will get you in the outdoor mood. Grab your coat ... Chalkboard paint opens up endless possibilities for customizing your dresser time and time again. Use chalk to label the c... A fireplace in the bathroom creates the ultimate setting for relaxation. Homeowners often choose electric or gas over wood... This roomy boot tray made from punched metal stands up to all the elements. Station it in your mudroom or at your back doo... There’s nothing like a new set of cabinet hardware to refresh a room. The possibilities are endless: Go modern, rustic, or... FLOR tiles are an affordable way to customize a carpeted floor covering for any space. Make anything from runners to wall-... Chalkboard paint features prominently in this elegant yet unpretentious headboard design. Add a new message daily to reflec... Salvaged boards in varying widths and colors make up the dramatic accent wall in this attic space. The high-gloss white of... The indecisive homeowner need not fret over choosing one (or even two) cabinet colors. The kitchen cabinets in this artist... Incorporate nature into your lighting scheme by securing a dead tree in a concrete mold and draping your pendant lamp from... Simple and striking, a couple of pieces of "lovingly used" furniture creates a special kind of charm. A weathered chair fo... First dress up your metal shelves with a coat of paint in an accent color that complements your kitchen decor. Then arrang... Dark wood shelving and a matching upholstered bench keep this closet sleek and refined. The large window brightens the sub...
Follow banner a
Newsletter icon Flipboard glossy Facebook Twitter Pinterest Youtube Rss icon