Texas Extra Payment Calculator

For a typical $252,000 mortgage (80% of Texas's $315,000 median home price) at 6.5%, adding $200/month can save you approximately $97,880 in interest and pay off your mortgage 7 years and 10 months early. Your normal total interest would be $321,412, but with extra payments it drops to $223,532. 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 $252,000 Texas mortgage at 6.5%, a one-time $5,000 payment in year one saves about $10,500 in interest, while $200/month saves $97,880 over the life of the loan. Many Texas homeowners combine both strategies for maximum benefit.

Texas has unique constitutional protections for homeowners — home equity loans have specific restrictions including limitations on prepayment penalties under Section 50(a)(6) of the Texas Constitution.

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 $97,880 in guaranteed savings on a $252,000 Texas mortgage. Tax consideration: With no state income tax in Texas, the federal mortgage interest deduction is your only tax benefit — but Texas's high property taxes make overall housing costs significant, making rate reduction through refinancing especially impactful. If your rate is below 4%, investing in diversified funds may earn more over time. Consider your risk tolerance, tax situation, and financial goals.