A frequently asked question among mortgage holders seems to be “is it better to make an additional principal payment every month, or can we make one lump-sum payment each year?” According to bankrate.com “The interest savings comes from reducing the outstanding loan balance. It doesn’t make much difference which approach you take because with either one you’re reducing your loan balance by an extra $2,400 each year. Bankrate’s Mortgage payment calculator doesn’t allow for biannual payments, but it will let you compare between making additional principal payments monthly or annually. One simple table illustrates an example of the two approaches.”