If i pay extra for my mortgage payment, will that extra go to my principle?

Whenever you make an extra payment, you need to specify that is is an extra payment of PRINCIPAL, otherwise it might go to escrow, early payment for next month, etc. It's on the coupons, and you fill in the line or check off a box. Paying extra principal in first 5-10 years of your loan can have huge impact over life of your loan, because almost all of your payment is going to interest otherwise. It will reduce total dollar amount you pay over time and it will reduce the length of time you pay. It's a wonderful thing to do whether it's $200 a month or a lump sum of $1000 from Christmas bonus or even smaller increments. As long as it is accompanied by coupon, it doesn't have to be by separate check, but you need something stating that it is extra PRINCIPAL. Some loans have prepayment penalties, not many now existing, but if yours does, there are limitations on prepayments or penalties for prepayment, usually for a set time period. Read your loan docs carefully, and ask. You can make ...  more