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Extra Payment Loan Payoff

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Frequently asked questions

How do extra payments save interest?

Extra principal reduces your balance sooner, so less interest accrues. The earlier and more you prepay, the more you save.

Lump sum vs monthly extra—what’s better?

Paying earlier usually saves more. A lump sum today often beats the same total spread over months, but cash flow matters.

Could there be prepayment penalties?

Some loans have prepayment penalties or recast rules. Check your lender’s terms before making extra payments.

Related tools

Try Recast vs Extra, Biweekly Mortgage, and Refinance Break-Even to compare payoff strategies.