The easiest way to compare extra-payment strategies is to keep your mortgage details constant and change only the additional payment method. For example, you could compare adding $100 to every monthly payment, making one extra payment each year, or making occasional larger principal payments. Look at three main results: the projected payoff date, total interest paid, and the amount of additional cash required under each strategy. A strategy that produces the fastest payoff may not necessarily be the best fit for your monthly budget. Consistency is also important because a strategy you can comfortably maintain may be more useful than an aggressive plan that creates financial pressure. Our mortgage calculator with extra payments can help you test different scenarios. You can also use the mortgage payoff calculator to focus specifically on how additional payments may change your expected payoff timeline.
