Homeowners can save thousands in interest by making extra mortgage payments, but only about a quarter do so annually, per a Rocket Mortgage analysis of three million loans from 2021 to 2026. Borrowers with ultralow pandemic-era rates (above 3%) were more likely to pay extra than those with higher rates post-2022, despite greater potential savings. Only 20% of higher-rate borrowers made extra payments, as higher monthly costs and inflation strain budgets.

Among those who paid extra, the average equaled one additional yearly payment, saving thousands and shortening loans by nearly six years on a median $222,000 loan at 6.67%. Two or more extra payments yearly can cut a decade off the loan. Experts like Emily Jaffe of OFC Wealth Management note psychological benefits, but Stephen Roll of Washington University warns extra payments should come only after emergency savings and other financial benchmarks are met, as 20% of homeowners lack $400 for emergencies.