The simplest way to make an extra payment

The most straightforward method is to contact your mortgage servicer — the company that sends you the monthly bill — and ask them how they accept extra payments toward principal. Most servicers let you send a check, make an online payment, or set up an automatic transfer, and they will explore the money to your loan balance rather than to next month's regular payment.

When you send the payment, include a note or use the payment memo line to specify that the extra amount should go toward principal, not toward future payments. Some servicers have a specific form or process for this, so calling ahead saves confusion. The phone number is on your mortgage statement.

Do not assume that paying extra with your regular monthly payment will automatically reduce your principal. Many servicers will straightforward credit it toward your next month's payment instead. That is why the explicit instruction matters — it tells them to shorten your loan, not to skip a month.

Key Takeaways

  • Contact your mortgage servicer to learn their specific process for extra principal payments, since methods vary between companies.
  • Always specify in writing that extra money should go toward principal, not toward your next regular payment.
  • You can make extra payments monthly, annually, or whenever you have the money — there is no set schedule.
  • Extra payments reduce the total interest you pay over the life of the loan and shorten how long you owe the mortgage.
  • Some servicers charge a small fee for extra payments, so confirm the cost before you commit to a regular schedule.

Payment methods your servicer likely accepts

Most mortgage servicers offer at least three ways to send extra money. Online payment through your servicer's website or app is usually free and shows up within one to three business days. You can typically set this up in minutes and choose the exact amount and date.

Automatic bank transfers or recurring payments are another option — you authorize your servicer to pull money from your checking account on a date you choose, usually monthly. This removes the step of remembering to send a payment each time, though you should confirm there is no fee for this service.

Mailing a check is slower but still works. Write the check to your servicer, include a note stating the money is for principal reduction, and mail it to the address on your statement. Allow two to three weeks for processing.

What happens after you send the payment

Your servicer will post the extra payment to your account, reduce your principal balance, and recalculate your remaining loan term. You will see the change reflected in your next statement, which will show a lower balance and, if you are on a fixed-rate mortgage, the same monthly payment amount.

The benefit appears over time: less principal means less interest charged on future payments. If you make extra payments consistently, you will pay off the loan years earlier and save thousands in interest. A single extra payment of $5,000 on a 30-year mortgage might save you $10,000 or more in total interest, depending on your interest rate and how early in the loan you make the payment.

Keep copies of your statements showing the reduced balance. If you ever dispute the payment or need proof that you made it, your statement history is the clearest record.

Timing: when to make extra payments

You can make extra payments at any time — there is no rule about when or how often. Some people send one large payment once a year. Others send a small amount monthly. Some wait until they receive a bonus or tax refund and put the whole amount toward principal.

The earlier in your loan you make the extra payment, the more interest it saves you. A $500 extra payment in year one of a 30-year mortgage saves more interest than the same $500 payment in year 20. But any extra payment reduces your total interest and shortens your loan, so the timing that works for your budget is the right timing.

If you are paid biweekly, some people make a half-payment every two weeks instead of one full payment monthly. This results in 26 half-payments per year (13 full payments) instead of 12, which is an extra payment annually without changing your budget much. Ask your servicer if they support biweekly payments, since not all do.

Fees and costs to watch for

Most servicers do not charge a fee for extra principal payments, but some do — usually a small amount per transaction, often $5 to $25. Online payments are more likely to be free than mailed checks. Before you set up a regular schedule of extra payments, call and ask whether your servicer charges a fee and what it is.

If there is a fee, you can decide whether it is worth paying. A $10 fee on a $500 extra payment is 2 percent of the payment, which is small. A $10 fee on a $100 extra payment is 10 percent, which is larger. The fee does not change the fact that the extra payment reduces your principal, but it does reduce how much of your money actually goes toward the loan.

Some servicers waive fees if you make payments through their website or app rather than by phone or mail. Ask about this when you call.

What to do if your servicer makes it difficult

A small number of servicers have made extra principal payments harder than they should be, either by charging high fees, requiring a specific form, or processing payments slowly. If your servicer is one of them, you have options.

First, ask to speak with a supervisor or the customer service department that handles loan modifications. Explain that you want to make an extra principal payment and ask them to walk you through their process. Sometimes the first person you reach does not know the fastest route.

Second, check whether your servicer has a website form specifically for principal reduction requests. Some companies bury this option, but it exists. Look under "Make a Payment," "Loan Management," or "Payment Options."

If your servicer continues to refuse or charge unreasonable fees, you can file a complaint with the Consumer Financial Protection Bureau (CFPB) at consumerfinance.gov. The CFPB handles complaints about mortgage servicers and takes them seriously. A complaint does not reverse a past fee, but it creates a record and can prompt the servicer to change their policy.

How extra payments affect your monthly bill and loan term

Making extra principal payments does not lower your monthly payment amount on a fixed-rate mortgage. You will still owe the same amount each month. What changes is how much of each payment goes toward principal versus interest, and how many months you will owe the mortgage in total.

For example, on a $300,000 loan at 6 percent over 30 years, your monthly payment is about $1,800. If you add $200 extra each month toward principal, your payment stays $1,800, but you will pay off the loan in roughly 23 years instead of 30. You will have paid about $150,000 less in total interest.

If you have an adjustable-rate mortgage, the monthly payment amount can change when the interest rate adjusts, but extra principal payments still work the same way — they reduce your balance and shorten your loan.

Frequently Asked Questions

Can I make an extra payment without calling my servicer first?

You can send a payment, but calling first is worth the time. A five-minute call tells you whether there is a fee, what form the servicer prefers, and how to write the payment memo so it is applied correctly. Without this information, your payment might be credited toward next month instead of principal.

What if I want to pay off the entire loan early?

Contact your servicer and ask about paying off the loan in full. They will give you a payoff amount, which is the exact balance plus any accrued interest through the date you plan to pay. This amount is different from your current statement balance because interest accrues daily. Once you pay the payoff amount, the loan is closed and you own the home free and clear.

Does making extra payments hurt my credit score?

No. Extra principal payments reduce your debt and show responsible borrowing. Your credit score may actually improve slightly over time as your loan balance decreases. There is no downside to paying extra.

Can I undo an extra payment if I need the money back?

Once an extra principal payment is posted to your account, it is permanent — you cannot reverse it. The money is now part of your loan payoff. If you think you might need the money within the next few months, it is safer to keep it in savings rather than send it to your servicer.

What if I have a second mortgage or home equity line of credit?

Each loan has its own servicer and its own account. Extra payments on your first mortgage do not affect your second mortgage or home equity line. If you want to pay down multiple loans, you will need to contact each servicer separately and make extra payments to each one.