Make one large principal-only payment once per year — typically using a tax refund, bonus, or savings surplus. Applied correctly, a single lump sum can knock years off your mortgage.
People who receive annual bonuses or tax refunds and want to maximize their impact.
Identify your annual lump sum source: tax refund, work bonus, savings surplus.
Apply it as a separate principal-only payment to your mortgage.
Confirm with your lender exactly how to designate it as principal — not a regular payment.
Check your updated amortization schedule to see exactly how much time was saved.