How Not to Make a Mortgage Prepayment
There are people who get a mortgage and then get tired of paying off the amortizations every month. They would decide, without consulting the experts, to put in as much money as they can into the account where they have to direct their mortgage payments and think that by doubling or tripling their payment, they would achieve a fast track mortgage prepayment. This is not a good move.
For one thing, once you have made an agreement with a bank, you should stick to the amount that you agreed to pay for every month. If you decide to put in more money into the payments, or make earlier payments without notifying the bank or making arrangements first, the bank would simply treat the extra payment as something which they could hold on to for the next month. In the meantime, they get to earn the interests on your money, and your mortgage payments will still be acting as if you only made the payment for one month.
In short, you are giving yourself a hard time. If you think that you should increase your monthly payments because you can afford to do so, then go to the loans officer and talk about changing the terms of your contract of agreement for payment. If you do not do this, the bank wins out while, definitely you lose out.
A word of advice: if you agree to make a certain payment every month, no matter how long it takes, just make that payment. Do not increase the payments on your own. Not only will the bank deny the extra payment, but the money you sent them can make them earn more money.
Always consult a lawyer if you intend to make changes on your contract of agreement. Do not just do it on your own. In the end, it is still beneficial if you pay according to what you and the bank agreed on, even if it will take thirty years to complete.