Why Is Prepaying A Portion Of My Mortgage Important?

Prepaying some of your mortgage is a great way to save money. You can prepay the principal to reduce the life of a fixed-rate loan; however, when you do prepay, the amount of the monthly mortgage payment remains the same. On the other hand, when you prepay the principal of an adjustable rate mortgage, the life of the mortgage stays the same, but the monthly payments are reduced at the next adjustment date.