The lender then pays these obligations on behalf of the borrower when they are due. As long as you do not run afoul of any pre-payment penalties which may be in your loan, paying extra each month can reduce the term of the loan. For example, making the equivalent of one extra payment each year can take eight years off a 30 year term. At the end of the year, the borrower has made 26 half payments, or 13 full payments, or one more payment than required. One extra payment per year made in this manner can reduce a 30-year loan term by eight years.
All programs are subject to change.