Borrowers are capable of reducing the number of years on their mortgages by making additional principal payments each month. By applying additional funds to the principal each month, this additional money will in turn reduce the principal of the loan and thus shorten the duration of the loan as well. The thirty-year fixed rate mortgage can easily be reduced to a twenty-year or even a fifteen-year mortgage contingent upon the amount of additional money you chose to apply each month towards the principal in addition to your regularly scheduled payment. Electing to allocate these additional funds to the principal allows borrowers to reduce the length of their note without being tied to the higher fifteen-year fixed rate payments in the event that their financial situation changes during the life of their loan. Should you elect to make additional payments, it is recommended that you send a separate check for the additional amount and clearly indicate that the additional payment is to be applied to the principal balance.