If I make double principal payments on my mortgage should it take more than one month off the end of the loan?
I just started my payments in Dec of ’07, and have been making double and triple principal payments every month. I’ve been keeping track with the online amortization schedule which updates after each payment. The extra payments only seem to be taking one month of the end of the loan. I always heard that paying extra take “months” off your loan which makes since to me… less principal = less interest over the life of the loan = months of savings. Can someone explain it to me in more detail…Thanks.
It’s a 20 year loan, there is no early repayment penalty, and I’m 100% sure the extra payments are going to principal.