There are many ways to shorten your mortgage, and thereby paying less for the cost of borrowing. Increase the frequency of your payments. Ask your mortgage professional to show you how you’ll save by paying biweekly or weekly, instead of monthly. If interest rates decrease when it is time to renew your mortgage, consider keeping your payments the same and applying more money to the principal.
Make prepayments or anniversary payments. Most mortgages will allow you to make payments up to 20% of the entire mortgage once a year. Double your payments whenever possible. Choose a shorter length of time to repay your loan. Ask your mortgage professional to show you how selecting a 20 year amortization period instead of a 25 year amortization period will affect your payments and interest costs. Consider choosing 15 years to repay if possible.
Source: http://www.caamp.org/mortgage101.htm
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