Forgotten Your Password?

Need to Register?

Question Icon

Does it make a difference to either add an extra payment to principal for a loan or to just add same amount to the monthly payment

by kayak43456550 from Hendersonville, North Carolina. May 13th 2020 Reply

David R Youngs - Branch Manager & Mortgage Advisor (DavidRYoungs)
#64 ranked lender in Minnesota - 87 contributions

Good question. If you are making bi-weekly payments, you would basically be making two 1/2 payments each year (as there would be 26 payments in the calendar year). This is a great way to go about accelerating the principal buy-down of your mortgage loan. However making ONE extra payment per year or TWO extra 1/2 payments throughout the year (ideally at the beginning of the calendar year) will essentially accomplish the same thing, if you were to run the math side by side. That said, if you have additional funds available, the first place you would want to apply those funds is towards higher interest consumer debt and/or investment strategies through your financial advisor. If you do not have a financial advisor yet, then I strongly recommend having a consultation. I may be able to offer a referral, depending on your overall situation and where you live. However assuming you have an advisor, it would be good to review ALL options of your monthly cash-flow and where best to allocate it. Choosing whether to accelerate on a mortgage loan and how much to accelerate is a very specific scenario to each individual. If you would like to discuss things further, please call or text me at 651-497-6770 or email me at Thanks for your question!

May 13th 2020
Joe Metzler (JoeMetzler)
#1 ranked lender in Minnesota - 4,703 contributions

Those two things are ultimately one in the same. Anything additional goes straight to principal reductions, and is always a very wise move if possible. For example, making just one extra payment over the course of the year, bit it one lump sum, 1/12th every month, or even bi-weekly if the lender allows it on a 30-yr fixed loan will typical chop about 7-years off your mortgage loan. How cool is that? I have tools that allow me to calculate exact numbers for my customers. I lend in MN WI IA SD ND and can be reached at NMLS274132

May 14th 2020
Subscribe to our news feed.