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What You Need to Know

Why This Calculator Matters

Extra payments are one of the most powerful wealth-building tools available. Even small additional amounts can save tens of thousands and years of payments.

Who Needs This

Homeowners with some extra cash flow, anyone receiving bonuses or tax refunds, or those motivated to become debt-free faster.

Key Insight

Extra payments have the biggest impact early in your loan when more of each payment goes to interest. A $100 extra payment in year 1 saves more than in year 20.

Common Mistake

Making extra payments to escrow instead of principal. Always specify that additional amounts should go to principal reduction.

Pro Tip

Bi-weekly payments (half your monthly amount every two weeks) results in 13 full payments per year instead of 12, shaving years off your loan with minimal lifestyle impact.

Real-World Example

Scenario: $250,000 mortgage at 6.5% for 30 years

Adding $150/month extra to principal

Pays off in 23 years instead of 30. Saves $72,000 in interest.

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