Tips to Pay Off Your Mortgage Faster

Paying off your mortgage earlier frees up cash and reduces the total interest you pay. The following strategies are practical and commonly used by homeowners to shorten loan terms without breaking their budgets.

1. Make extra principal payments

Adding a modest extra amount each month directly reduces the loan balance. For example, adding $100 to a 30-year mortgage can save thousands in interest and shave years off the term. Use the calculator to see precise savings for your loan.

2. Make one extra payment per year

Rather than monthly extras, some borrowers add one full payment each year. This is an easy method to accelerate payoff without monthly strain. If your lender allows specifying that the extra amount goes to principal, you'll maximize the benefit.

3. Switch to biweekly payments

Biweekly payments split the monthly amount in two and result in 26 half-payments per year (13 full payments). That extra payment reduces the principal faster and cuts the loan term.

4. Refinance to a shorter term

If rates fall significantly and refinancing fees are low, moving from a 30-year to a 15- or 20-year loan can save a substantial sum. Make sure the payment is affordable in your budget.

5. Use windfalls for principal

Apply bonuses, tax refunds, or inheritances to principal. These one-off payments accelerate the payoff timeline and reduce overall interest.

Practical tips

• Confirm no prepayment penalties before extra payments.
• Direct extras explicitly to principal — lenders sometimes misapply payments.
• Keep a balanced emergency fund before allocating large sums to loans.

Use our mortgage calculator to model any of these strategies and see the exact impact on your total interest and payoff date.