Yes, by paying extra on your mortgage every month, you are reducing your balance faster. The smaller your mortgage balance, the less interest you pay each month. With less interest paid, that leaves more of your monthly payment to reduce the mortgage balance even faster. Depending on your mortgage balance, extra payments could shave years off your loan term. However, keep in mind that paying extra to reduce your balance will not change your monthly payment. That same minimum monthly payment is due until the loan is paid off.