An additional principal payment is money you pay towards your principal balance that is above and beyond your regular monthly mortgage payment. Typically this payment can be made anytime, but for ease many people opt to make additional principal payments at the same time as their monthly mortgage payment.

To ensure the funds sent are applied to the principal balance, be sure to indicate how much you've sent and where those funds are to be applied. Your lender will not automatically know. This can be easily accomplished by indicating the extra payment on your lender supplied mortgage statement or payment coupon you send in with your monthly payment. If you make your payments online, there is most likely an option on the payment screen to indicate your additional principal payment. If not, contact your lender for instructions on how to make additional principal payments to ensure your payments are properly credited.

For Citi customers, who have registered for online account maintenance, principal payments can be made online by logging into your account from the CitiMortgage website. Once you have logged in, select make a payment. The Online Payment page will display. You can find the additional principal payment option under the "Step 2: Tell us how much you want to pay" section (illustrated below). Simply enter the amount of your additional principal payment and select submit.