How to Pay Off Your Mortgage Faster

Paying off your mortgage faster is a great way to save money on interest and build equity in your home more quickly. Here are some strategies to consider if you want to pay off your mortgage faster:

1. Make bi-weekly payments: By making half payments every two weeks instead of a full payment once a month, you can make one extra payment per year and reduce your mortgage term by several years.

2. Round up your payments: If you round up your monthly mortgage payment, you can make an extra payment to your principal each year. This small change can have a significant impact on the total amount of interest you pay over the life of your mortgage.

3. Make extra principal payments: If you have extra cash available, you can make additional payments to your mortgage principal. Even small amounts can reduce your mortgage term and save you money on interest.

4. Refinance to a shorter term mortgage: Refinancing to a 15-year mortgage instead of a 30-year mortgage can significantly reduce the amount of interest you pay and help you pay off your mortgage faster.

5. Consider a bi-weekly accelerated mortgage payment plan: This type of plan allows you to make payments every two weeks, which can result in 26 payments per year instead of 12. This can save you thousands of dollars in interest and significantly reduce the term of your mortgage.

6. Make a lump sum payment: If you have a lump sum of money, consider making a large, one-time payment to your mortgage principal. This can reduce the amount of interest you pay and shorten the term of your mortgage.

7. Avoid refinancing for cash-out: Refinancing your mortgage to take cash out can result in a longer loan term and increase the amount of interest you pay. If you need money, consider other options such as a home equity loan or line of credit.

In conclusion, paying off your mortgage faster can save you money on interest and help you build equity in your home more quickly. Consider these strategies to help you achieve your goal of paying off your mortgage faster.

Aaron Clark - NMLS 1770738

"The Mortgage Dude"

Senior Mortgage Lender

Motto Mortgage Charged

Co. NMLS 2263902