One effective strategy for reducing your mortgage principal is to use windfalls, such as bonuses, tax refunds, or inheritances, to make extra payments towards your mortgage. By applying these windfalls directly to your mortgage principal, you can significantly reduce the amount of interest you pay over the life of the loan.

For example, if you receive a $5,000 bonus at work, applying this amount towards your mortgage principal can save you thousands of dollars in interest payments over the long term. Additionally, making extra payments can help you pay off your mortgage faster, allowing you to build equity in your home more quickly.

References:

• Investopedia - Making Extra Mortgage Payments
• NerdWallet - How to Pay Off Your Mortgage Early