Step 1: Know Your Starting Numbers
Log into your mortgage servicer account and gather: current balance, current APR, required monthly P&I payment (not including escrow), and remaining loan term. Write these down. These four numbers are the inputs to your plan.
Step 2: Calculate the Extra Payment for Your Goal
Use the extra payment calculator to find the monthly extra payment needed to reach your 5-year-early goal. Note this target amount. Then determine your realistic budget: how much extra can you genuinely sustain each month without creating financial stress? Start with that amount, even if it’s below the target — you can increase over time.
Step-by-step extra mortgage payment plan
| Step | Action | Time | Output |
|---|---|---|---|
| 1. Gather numbers | Log into servicer; note balance, rate, term, payment | 10 min | Current mortgage snapshot |
| 2. Calculate extra payment needed | Use calculator for 5-year-early goal | 5 min | Target extra payment amount |
| 3. Budget review | Identify available monthly cash above minimums | 20 min | Realistic extra payment amount |
| 4. Set up principal payment | Servicer portal: establish recurring extra payment | 15 min | Automated extra payment running |
| 5. Set calendar reminders | Annual review; increase payment after income rises | 5 min | Scheduled future adjustments |
| 6. Track annual progress | Check balance Dec 31 each year vs. projection | Annual — 5 min | Confirm on track; adjust if needed |
| 7. Apply all windfalls | Tax refund, bonus → principal immediately | As they arise | Accelerated balance reduction |
Setting Up Your Extra Payment with Your Servicer
Most major servicers (Wells Fargo, Chase, Quicken/Rocket, servicers like PHH, LoanCare, etc.) allow principal-only extra payments through their online payment portal. Look for: 'Additional Principal,' 'Principal Payment,' or 'Extra Payment to Principal.' Set up as a recurring monthly payment in addition to your required payment. Confirm on your first statement that the extra amount shows as a balance reduction, not as a credit toward next month’s payment.
After your first extra payment posts, check your statement: your outstanding balance should have decreased by (regular principal reduction + extra payment amount). If it decreased by only the regular amount, your extra payment was applied incorrectly — call your servicer.
Start with the Calculator — Find Your Number
Enter your current balance and desired early payoff timeline to see the exact extra payment that gets you there.