1 in 4 homeowners are making this extra mortgage payment. Should you?

The affordability crisis may be preventing some homeowners from paying off their mortgages early. The share of Americans who are forking over additional money to pay down the principal on their mortgage fell earlier this year to the lowest level in about five years, according to a new report from Rocket Mortgage. Through the end of January, nearly 25% of the Detroit-based lender’s clients made at least one additional annual payment, down from as high as almost 30% who did so in 2022. Some people consider extra principal payments to be a savvy financial move because it’s a way to shorten a borrower’s payoff timeline by several years. “For homeowners who have room in their budget and want to reduce debt, small additional principal payments can have a surprisingly meaningful impact over time,” Bill Banfield, chief business officer at Rocket Mortgage said in a statement. But the homeowners who stand to benefit most from paying down their mortgage—those who bought homes in the 2023 through 2025 period when interest rates were higher—are less likely to make additional payments. And the rising cost of everyday expenses, alongside larger monthly housing costs, could help to explain why it…