I’ve been asked by quite a few users about the benefits of adding additional principal payments to the loan with each month’s payment. Logically, since you will be paying double the amount of principal each month, you will, in the end, pay off your mortgage in half the time.
As you get further into the term of your loan, your additional principal payments will become larger each month. The reason for this is that during the first few years of your loan, a majority of each payment goes toward interest, leaving just a small percentage going toward the principal. This switches as you get deeper into your loan term, payments to principal become larger and payments to interest become smaller.
In the end, making double principal payments to accelerate your mortgage loan payment basically serve to make your principal amount (and the resulting interest payments) decrease much more rapidly than with standard monthly mortgage payments.