Dear Ms. Lank: As I send in additional payments to principal on my mortgage, will that cause more of the regular monthly payment to be applied to principal as well?
Yes, that’s exactly how it works.When you cut down the debt faster than scheduled, you owe less interest than originally planned. That frees up more of each monthly payment to go toward reducing principal.A fixed-rate mortgage will end ahead of schedule, or an adjustable rate mortgage will have lower payments than it would have had otherwise.