How One Extra Mortgage Payment a Year Could Save You Over $200,000

When most people think about saving money on their mortgage, they imagine refinancing, chasing lower rates, or waiting for the market to shift. But what if there were a simpler way?

💡 Here’s the truth: making just one extra mortgage payment per year could save you more than $200,000 over the life of your loan—without changing your interest rate or loan type.

The Power of One Extra Payment

Let’s look at an example using a typical Edmonds-area home purchase:

• Home Price: $900,000

• Down Payment: 20%

• Loan Amount: $720,000

• Interest Rate: 6.75%

• Monthly Payment: $4,670

Scenario A: Standard 30-Year Mortgage

• Interest Paid: $961,166

• Payoff Time: 30 years

Scenario B: One Extra Payment per Year

• Interest Paid: $742,592

• Payoff Time: ~24 years

The Results

• Savings: $218,574

• Years Off Your Loan: 6 years

• Impact: Huge!

🤯 A small change can make a massive difference in your long-term financial freedom.

Why This Works

Mortgages are front-loaded with interest. That means in the early years, a large chunk of your monthly payment goes toward interest rather than principal. By adding just one extra payment per year (whether spread out monthly or as a lump sum), you reduce your balance faster and pay less interest over time.

This strategy is especially powerful in Edmonds and the greater Seattle area, where home prices are higher and mortgages tend to be larger.

Tips for Making It Happen

✔️ Divide into 12 parts – Add 1/12th of a payment each month, so you barely notice the difference.
✔️ Use windfalls – Apply tax refunds, bonuses, or extra income directly toward your mortgage.
✔️ Stay consistent – The real magic is in the habit, not just the one-time move.

Thinking About Buying in Edmonds?

Smart financial moves like this one can help you feel confident about homeownership. If you’re planning to buy this year, I can help you:

• Build a road map to fit your budget and goals.

• Access tools to match you with homes that align with your financial comfort zone.

• Navigate Edmonds real estate with clarity and strategy.

👋 I’m Beata Miklos, a local Edmonds real estate agent with over 20 years of experience helping buyers and sellers make smarter moves in every kind of market.

📩 Reach out today to start your Edmonds home-buying strategy.