Double Payments to Slash Mortgage Principal—How Does That Work?

Paying off more of the principal can significantly reduce the total amount of interest you will pay.

Feel great when you pay less interest on your new home. fizkes/Shutterstock

Dear Cheapskate: Would you please explain how making double mortgage payments works to reduce the principal?—Stephanie

Dear Stephanie: Sure! Let’s say you have these loan terms: $150,000 principal at 6 percent interest for 15 years. Your monthly payments are $1,265.78.