Better to make extra principal payments or extra mortgage payments?

I am planning on paying down my mortgage early. Am I better off making an extra $500 principal payment or making an additional regular payment every other month? It seems that I pay more interest when I make extra payments, which helps on the taxes - but wondered what it would look like after a few years.Better to make extra principal payments or extra mortgage payments?
Apply it to the principal. Would you rather save a few thousand off of your AGI (reducing taxes by only a few hundred), or have tens of thousands more dollars in your pocket?





Even if you decide to move, paying down the principal gets you more equity in your home so you can take a bigger portion of the selling price.





Just because you can write off the taxes on your mortgage, does that really mean having one is better?Better to make extra principal payments or extra mortgage payments?
There are two things to consider:





Paying down your principal will reduce the amount of interest you pay over the life of your mortgage.





Making additional mortgage payments could effectively reduce your 30 Year Mortgage to a 20 Year Mortgage, and earn tax advantages.





If I were you, unless an expert chimes in on this subject, I'd ask your question of a mortgage banker. Look one up on the telephone and give them a call. You don't want ';amateur advice'; when it comes to something like this.





Good luck.
If you have an open end mortgage, you can pay down the mortgage any time. You should request an amortization from your mortgage co that will give a break down between interest/principle. On the first half on the life of a mortgage, you pay about 70% in interest. That's how they make their money.
If you have a 30 year mortgage and make an extra payment a year you will pay off your home in 20 years so in anwser to your question everthing you make extra on payment being $500 or a full extra payment everything will go to the principal. Good for you.
extra prinicpal payment because it knocks down the amount of interest you end up paying and reduce your total years of payments. you'll be able to pay off your house sooner and start saving your mortgage payments towards retirement or pay off other bills quick!
Why do you want to pay off your mortgage. Do you plan to live in the house for 30 years. If you do and don't want a house payment then pay of the interest. A 300k house will cost twice that over thirty years in interest. But I would advice not to pay it off, at some point sell it and downsize. you'll get killed in taxes each year.