How the Extra Payment Calculator Works

Every scheduled payment already splits between interest (based on your current balance) and principal. Any extra amount you add goes 100% toward principal, which immediately lowers the balance that next month's interest is calculated on - re-running the amortization formula with a smaller P for every remaining period. The compounding effect of consistently shrinking that balance is what cuts both your total interest paid and your overall loan term.

The calculator projects two schedules side by side - your original amortization schedule and one with your extra payments applied - so you can see the total interest saved and how many months/years you shave off the loan.

California rules & 2026 figures that apply

• Under the federal Homeowners Protection Act, your servicer must automatically cancel private mortgage insurance (PMI) once your loan balance is scheduled to reach 78% of the home's original value (as long as you're current), and you can request cancellation in writing once you reach 80% (NCUA, Homeowners Protection Act summary).
• The federal mortgage interest deduction caps acquisition debt at $750,000. California does not conform to that federal cap - a CA state return can still deduct interest on up to $1 million of acquisition debt on a qualified principal residence, so some CA homeowners can deduct more on their state return than on their federal return. This is general information, not tax advice - confirm your situation with a CPA (California FTB, 2025 Schedule CA (540) instructions).

Estimates only, not a commitment to lend. Figures above reflect publicly reported 2026 program limits and CA tax rules as of this writing and can change - confirm current numbers and your specific eligibility with one of our loan officers before making a decision. The Home and Commercial Loan Company, Inc. is an Equal Housing Opportunity lender, NMLS #1665729.