[inishowen]

I don't see the upside to paying down a fixed rate mortgage a little at a time. Beyond the psychological comfort of seeing your principal number decline monthly there is no decrease in monthly payment and you are losing some of your inflation hedge. I think a better way to do it is to set up a separate account to receive these extra payments, that way the cash is available to you in case of emergency. If you never need it and the balance grows to a solid number, then you could pay down the principal and refinance for a lower monthly payment.