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There are many different types of loans out there with different interest rates that can change your mortgage payment. I'm sure you have heard someone say something like "If you add one payment per year it will knock years off your mortgage".
That statement is very true and I don't even have to show you the math behind it. Just figure out how much extra you can spend adding principal each month. Then use a mortgage calculator to show you how much you can save. I have an extra payments calculator on my site to help you figure that out.
Even if you can only add $25 dollars per month you would save about $14,000 over the course of your mortgage. So it doesn't take a lot to save money on your mortgage.
Can You Add Principal to An Interest Only Loan?
Yes. Sometimes the bank approves you for less than you think you can actually afford. Or your credit score affected the amount the bank would loan you. So the best thing to do is to get the interest only loan so the bank approves it for you and then make the extra principal payments each month.
If you really get the interest only loan you have to be very careful. After 5 years of payments the principal gets added into your mortgage payment. The interest rate is also adjustable so it will be adjusted after the 5 years as well. If the rate goes up and the principal gets added into the payment there's almost not way for anyone to continue affording it.
That's why you have to keep adding principal each month before the 5 years is up. Then the payment will be the same as the amount you have been paying the whole time. It will be the same as the amount including the extra principal you were adding. | 
