Why a little extra goes a long way
Every extra dollar you send goes straight to principal, so it never accrues interest again. Early in a mortgage most of your payment is interest, which is why adding even a small amount each month can cut years off the loan and save tens of thousands in interest.
This is the tool our team uses
When a Lexington officer shows a client what $100 or $200 a month really does, this is the math behind it — total interest saved, the new payoff date, and the years shaved off. Try your own numbers, then apply and we’ll build it into your plan.
How does paying extra save so much interest?
Extra payments reduce your principal immediately, and interest is charged only on the remaining balance. Lowering principal early means every future month accrues less interest, which compounds into large lifetime savings.
Is it better to pay extra monthly or once a year?
Monthly extra payments save slightly more because the principal drops sooner, but any extra principal — monthly, yearly, or a one-time lump — shortens the loan and cuts interest.
Will my lender let me pay extra?
Almost all mortgages allow extra principal payments with no penalty. Tell your servicer to apply the extra to principal. Ask your Lexington officer if you want to confirm your specific loan.
