Washington - It’s a strategy that crosses the mind of many borrowers when they take on a home loan: Make an extra mortgage payment or two every year and save tens of thousands of dollars in interest.

The move can shave off costs for a home loan and ensure it’s paid off faster. Even one additional payment a year can translate into big savings.

On a $250,000, 30-year mortgage with a fixed rate of 4 percent, making an extra payment every year would save the homeowner roughly $27,724 over the life of the loan. It would also cut the amount of time needed to pay back the loan by four years and one month.

Even so, there are potential financial drawbacks to consider. Borrowers who can afford to make extra mortgage payments tie up cash that could be put toward retirement or used for emergencies.... Read More: VIN