The simple mortgage habit that could save you years of payments

“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,” said Bill Banfield, Chief Business Officer at Rocket Mortgage.

“One simple approach is making the equivalent of one extra payment each year. On a 30-year mortgage, that can eliminate years of payments and save tens of thousands of dollars in interest.”

For brokers advising clients on financial health beyond the close, the data offers a ready-made conversation framework. Switching to biweekly payments — which produces 13 monthly installments per year rather than 12 — is among the most accessible entry points for borrowers who want to replicate the effect without making large lump-sum contributions.

Rocket found that two additional payments annually can shorten a 30-year term by a full decade.

Mortgage applications for newly built homes slipped in July, with the Mortgage Bankers Association (MBA) reporting a 5.7% year-over-year decline and a 1% month-over-month drop.https://t.co/I2RiisWjyg

— Mortgage Professional America Magazine (@MPAMagazineUS) August 20, 2026

Rate era shapes who pays extra

The analysis uncovers a behavioral divide tied directly to origination timing. Homeowners who secured ultra-low rates between 2020 and 2022 — when the 30-year fixed averaged near or below 3% for an extended period — are more likely to make extra principal contributions than those who entered the market after rates climbed.