Washington Extra Payment Calculator

For a typical $460,000 mortgage (80% of Washington's $575,000 median home price) at 6.5%, adding $200/month can save you approximately $115,619 in interest and pay off your mortgage 5 years early. Your normal total interest would be $586,705, but with extra payments it drops to $471,086. 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 $460,000 Washington mortgage at 6.5%, a one-time $5,000 payment in year one saves about $10,500 in interest, while $200/month saves $115,619 over the life of the loan. Many Washington homeowners combine both strategies for maximum benefit.

Washington state law restricts prepayment penalties on residential mortgages; the state's Consumer Loan Act provides protections that effectively limit prepayment penalties on most home loans.

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 $115,619 in guaranteed savings on a $460,000 Washington mortgage. Tax consideration: With no state income tax in Washington, the federal mortgage interest deduction is your only tax benefit from mortgage interest — lowering your rate through refinancing directly maximizes your savings. If your rate is below 4%, investing in diversified funds may earn more over time. Consider your risk tolerance, tax situation, and financial goals.