California Extra Payment Calculator

For a typical $628,000 mortgage (80% of California's $785,000 median home price) at 6.5%, adding $200/month can save you approximately $122,989 in interest and pay off your mortgage 3 years and 10 months early. Your normal total interest would be $800,979, but with extra payments it drops to $677,990. Use the calculator above to see your exact savings.

Both strategies save money, but a lump sum applied early in your loan has the most impact per dollar because it reduces the principal that accrues interest for years. Monthly extra payments offer more consistent savings and are easier to budget for. On a $628,000 California mortgage at 6.5%, a one-time $5,000 payment in year one saves about $10,500 in interest, while $200/month saves $122,989 over the life of the loan. Many California homeowners combine both strategies for maximum benefit.

California law prohibits prepayment penalties on owner-occupied residential loans after the first 36 months, and most lenders do not include them on conventional California mortgages.

This depends on your mortgage interest rate versus expected investment returns. At 6.5%, extra payments offer a guaranteed "return" equal to your interest rate — that's $122,989 in guaranteed savings on a $628,000 California mortgage. Tax consideration: California's high state income tax (up to 13.3%) makes the mortgage interest deduction particularly valuable, but the $10,000 SALT cap may limit the combined benefit for homeowners in high-tax brackets. If your rate is below 4%, investing in diversified funds may earn more over time. Consider your risk tolerance, tax situation, and financial goals.