3 Ways to Pay Off Your Mortgage Early

By Dan Main

Paying off your mortgage early is worth the effort. You’ll reduce your interest payments and achieve financial independence at a younger age. If you want to own your home before the term on your mortgage, review the guide below for a few effective strategies.

How to Pay Off a Mortgage Quickly

1. Make Extra Payments

Rather than sending in your mortgage payment once a month, split the payment amount in half and send it once every two weeks. In one year, you’ll have made the equivalent of 13 monthly payments. This strategy can pay off a 30-year home loan anywhere from four to six years early.

You can also put a single extra amount toward your principal once a year. Do this whenever you get any extra cash, whether that’s from a holiday bonus or a tax refund.

2. Refinance With Lower Interest Rates

ofallon mortgage Once you’re more financially stable, you can refinance your home for a shorter term. Refinancing is the process of obtaining a new mortgage to replace the original, using the new one to pay off the first loan.

Only do this if you can negotiate new, more favorable terms on the new mortgage. If you refinance once interest rates have dropped, you can afford to pay extra on your principal each month since you will pay less in interest.

3. Round Up

If you have the room in your budget, submit some extra money each month for the principal. Simply round up to the nearest hundred. This relatively small amount may go unnoticed by you, but will shave off time as the balance accumulates.

Dan Main has been the trusted mortgage loan officer of O’Fallon, MO, and the surrounding area for more than 20 years. He will sit down and explain all your financing options. He is known for his knowledgeable service, low-rate products, and fast closing times. Visit his website to use an online mortgage calculator, and call (636) 284-4144 to request an appointment.

Dan Main: NMLS # 502036
Flat Branch Mortgage Inc: NMLS #224149