[stevesaldana]

To clarify, my definition of savings refers to "payments you would not have had to make". Regardless of the proportion of principal to interest, the payment is still the contractual amount you have to pay each month. If you have a fixed minimum payment, any extra payment you make is not impacting the amount due next month.

To your point, yes, next month's payment has a higher ratio of p:i, but you have not "saved" anything...yet. In the end, the extra payments you make are just going towards reducing the maturity date of the loan. You are correct that the relative impact of making these extra payments early on does have a tremendous influence on the total interest saved over the life of the loan (and determines how many minimum payments you will chop off the end of your term). I didn't make that clear in my initial comment.

[lostlogin]

Just to add to this - floating rate loans are common here, with a fixed date of mortgage ending. So an early payment in this situation leads to a lower payment next months (probably by a few cents or a dollar to 2 if you made a decent lump sum payment). It isn't much, but depending on initial mortgage setup a saving for next month can be realised.