Mortgage Prepayment Robert McListerNovember 4, 2011General0 min read Tweet Share 0 LinkedIn 0 An mortgage payment that is optional and made earlier than necessary. Mortgage prepayments are applied directly to principal, thus saving you interest for the remainder of your amortization period. Like news like this?Join our CMT Updates list and get the latest news as it happens. Unsubscribe anytime. SUBSCRIBE! Thank you for subscribing. One more step: Please confirm your subscription via the email sent to you.