Monthly extra versus one check
A monthly extra is a habit. A one-time payment is a single reduction, often from a bonus. The payoff page runs them as separate alternatives so the savings are not double counted.
Either one leaves the required payment in place. You do not get a lower bill unless the loan is recast, which is a different request and sometimes a fee.
Tell the servicer where it goes
Payments can be applied to principal, to escrow, or held as an early installment. Principal is the one that cuts interest.
If the note has a prepayment penalty, the savings math is incomplete until that penalty is subtracted. The calculator does not know your note.
| Instruction | Effect |
|---|---|
| Apply to principal | Lowers balance and interest |
| Pay ahead | May not cut interest the same way |
| Escrow | Pays taxes and insurance |
Calculators
Related guides
Sources
Common questions
Is there a best day of the month?
Interest in these models is monthly or biweekly, not a daily bank formula. Sending it so it posts before the next interest calculation is the practical goal.
Can I skip a later payment because I paid extra?
Not unless the servicer agrees. Extra principal is not stored credit for a missed bill.