⚠️ For educational purposes only. Consult a licensed professional for personalized guidance.
Mortgage Strategies

Fixed Extra Principal Payment

Add a fixed extra dollar amount to the principal portion of your mortgage every month. Even $100–$200 extra per month can cut years off a 30-year loan.

Difficulty: ⭐ Beginner Category: Mortgage Strategies
Best for

Anyone with any room in their budget. The impact is real even at small amounts.

How to do it — step by step
1

Decide on a fixed extra amount you can afford comfortably each month.

2

When making your payment, add the extra amount and label it 'apply to principal only.'

3

Confirm on your statement that the extra is reducing principal — not being held.

4

Increase the amount any time your income grows.

Advantages & considerations
Advantages
  • Fully flexible amount
  • No lender coordination required
  • Compounds dramatically over a 30-year timeline
Worth Knowing
  • Must verify correct application on every statement
  • Impact is slower than lump-sum payments
Related systems
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