Making one extra mortgage payment a year might not sound like a huge financial move, but the long-term benefits can be significant. The strategy helps you pay off your loan early, increases the speed at which you build home equity, and, most importantly, reduces the amount of interest you pay over the life of your loan. Here’s what to know about this approach and how to make it work for your budget and goals. How mortgage repayment works Most mortgage loans are amortized — meaning the amount you owe (p ...