“Paying a little extra toward your mortgage each month can have a significant impact. While your regular payments help amortize your loan, adding extra payments toward the principal can reduce both the time it takes to repay the loan and the amount of interest you’ll pay over its life.

Interest is calculated based on your remaining principal balance, so as you pay down the principal faster, the interest owed decreases. By doing this, you could save thousands of dollars in interest over the term of your loan.

Additionally, making extra principal payments shortens the overall loan term, meaning you’ll pay off the mortgage faster and build equity more quickly. As a result, you’ll have fewer total payments to make, which increases your savings in the long run. If your budget allows, this strategy is a smart way to save on interest and pay off your home sooner.”