Save Thousands with Extra Payments | Mortgage 101

If you’re a homeowner looking for a smart way to save on your mortgage, consider putting a little extra toward your loan when you can. Even one or two additional payments a year can make a big difference—helping you build equity faster, pay off your loan early, and cut down on the total interest you’ll pay.

One extra payment a year
Let’s say you have a $300,000, 30-year mortgage at 6.75%. Your monthly payment is about $1,946. If you make just one extra payment in the first year, you could shorten your loan by about seven months and reduce your total interest by more than $12,000. Not a bad return for one additional check.

Two extra payments a year
Now imagine doubling that. If you make two extra payments a year—roughly $3,892 total—you’d cut about 14 months off your loan and save more than $24,000 in interest. That’s money that stays in your pocket instead of going to the bank.

How to make it work
A simple approach is to add one extra payment in July and another in January. That gives you six months in between, making it easier to budget without feeling the squeeze.

More mortgage resources
Looking for additional strategies to save money on your mortgage? I’ve put together calculators and tips that can help you plan ahead. You can check them out here: Mortgage Tips & Calculators.

📌 Let’s Talk Real Estate
Have questions about buying or selling a home near Notre Dame, or just want to discuss mortgage options? I’m here to help.

Tim Vicsik
RE/MAX 100 – South Bend, IN
📞 (574) 329-9587
📧 tim@timvicsik.com
🌐 www.nd-condos.com