Extra principal is the flexible version
The payoff calculator compares the current schedule with an extra monthly amount and, separately, with a one-time payment. It does not add those two gifts together.
The required payment usually stays the same. You are choosing to send more, and you can stop. Check the note for a prepayment penalty before assuming it is free.
A shorter term forces the payment
Refinancing from a remaining 27 years into 15 years raises the required payment and cuts interest if you complete it. That only helps if the new payment is one you can keep making.
Biweekly only matches the interest savings when each half-payment is applied to the loan. A draft that is held and posted monthly may not.
| Path | Required? |
|---|---|
| Extra monthly principal | No |
| One-time principal | No |
| Refinance to a shorter term | The new payment is required |
Calculators
Related guides
Sources
Common questions
Should I invest instead?
That depends on the after-tax return you actually earn and on whether you want a risk-free reduction in loan interest. The pay-off-versus-invest guide sets up the comparison. It does not pick a winner.
Does extra payment change escrow?
No. Mark the extra amount as principal. Otherwise it can sit in a suspense account or be treated as a future payment.