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Question: I'd like to know more about mortgage payments. If I pay one or two extra payments each year how much faster can I payoff my house? I have a 30-year mortgage.

Answer: Here’s an example of how extra payments can shorten your loan:

Mortgage amount: $200,000
Monthly payment: $1,199 ($1,000 interest, $199 principal)
Interest rate: 6 percent

If you pay an extra $1,199 payment (which is all principal) three months after you get the loan it will cut five months from your payoff date. If you pay one extra payment of $1,199 every year, you would shorten the loan by five years and six months. Paying extra earlier in the loan is the fastest way to shorten your loan because more of your payment goes to pay principal.

Use an online mortgage calculator to get exact figures — try Bankrate.com.

And beyond the numbers, it just plain feels good. It is a long process. But once started, you'll become addicted to the thought of paying it off.

Make sure you get a loan history from your lender each year to confirm that they are applying the extra principal payment correctly. You can usually get this with a simple phone call. It is wonderful to see the principal plummet every year.