A strategy that many investors and homeowners have used to build wealth in their own home or rental homes is to make extra principle payments which will result in the loan being pay off more quickly. Perhaps one of the simplest ways to do this is to use the original amortization schedule at the purchase of the home and make the next month(s) principle payment in addition to the normal monthly payment.
This works particularly well with rental properties are rents increase. Should one desire to make larger additional principle payments, the same process can be followed by adding up as many of the next month’s principle portion of the payment as desired and adding that amount to his regularly scheduled monthly payment. This approach is easy to follow for both the property owner and the lender. It is wise to write a separate check for the amount of the principle payment and so note on the check that this be applied to the principle. Don’t assume that the lender will always apply the payments properly. You should review your balances annually to make sure that the payments have been properly applied. Even including a copy of your original amortization schedule with additional principle payments noted by date and check number is a good idea.