Reply #4: None that I know of. [View All]

[Burma Jones]

Any extra principal you pay goes to reducing the term of your loan, and thus, the interest you pay on it. We pay a couple hundred extra per month which goes right to the principal. The accelerated payment option basically does the same thing, but less. If you were to stick an extra $50 or so per month in your mortgage payment, you save a lot in interest in the long run.

Alternatively, if you have the discipline to save a couple hundred a month in, say, an IRA, you do even better. So the only pitfall I can think of is opportunity costs associated with taking potential investment money and using it to reduce what should be your cheapest debt.