Washington D.C. Extra Payment Calculator

For a typical $459,359 mortgage (80% of Washington D.C.'s $574,199 median home price) at 6.5%, adding $200/month can save you approximately $115,583 in interest and pay off your mortgage 5 years early. Your normal total interest would be $585,887, but with extra payments it drops to $470,304. 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 $459,359 Washington D.C. mortgage at 6.5%, a one-time $5,000 payment in year one saves about $10,500 in interest, while $200/month saves $115,583 over the life of the loan. Many Washington D.C. homeowners combine both strategies for maximum benefit.

D.C. law restricts prepayment penalties on residential mortgages. Most conventional loans in DC do not include prepayment penalties, but always verify with your lender.

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 $115,583 in guaranteed savings on a $459,359 Washington D.C. mortgage. Tax consideration: Washington D.C. If your rate is below 4%, investing in diversified funds may earn more over time. Consider your risk tolerance, tax situation, and financial goals.