Could someone please tell me (a 30-year loan) what the effect will be of making 1, 2 or 3 extra payments on a home/mortgage loan per year?

When extra payment is made, does one pay both P&I or just the P portion?

Mortgage interest is calculated each month on the amount of the outstanding balance at that time.

Then for any payments the amount of interest is deducted from the payment and the remainder is used to reduce the principle.

Then the next month the principle will be lower and thus the amount of instrest is lower and more the payment goes towards the principle.

If you pay extra then there is that much more money that goes towards reducing the princple and greatly accelerates the time when the mortgage is paid off.

You can find any number of mortgage interest calculators online that should allow you to play with different combinations to see the affect.

1 month extra takes @ 8 yrs off a 30 yr mtg.

Steve Verrier