How to Pay a Mortgage Off Early

Learning how to pay a mortgage off early can provide you with a lot of financial flexibility in your life. By eliminating your biggest payment, you are going to be able to do a lot of different things with your income. Here are a few strategies that you can use in order to pay off your mortgage early.


Refinancing is often looked at as one of the biggest problems that people have when it comes to paying off their mortgage. Typically, people refinance in order to get cash out of their homes or take advantage of a lower interest rate. However, you can also refinance your mortgage into a shorter loan term if you want. For example, by refinancing your loan into a 15-year mortgage instead of a 30-year mortgage, you are going to cut a significant amount of time off of the length of the mortgage. In most cases, you are going to increase your payment by only approximately $200 to $300 per month by doing this. However, you are going to pay off the loan in half of the time. In addition to this, you are going to save yourself thousands of dollars in interest charges over the life of the mortgage.

Biweekly Mortgage Payment Plans

Another great strategy that you can use to pay off your mortgage early is a biweekly mortgage payment plan. These plans are regularly offered by mortgage lenders across the country. With such a plan, you are going to make half of your monthly mortgage payment every two weeks. Many people do not see how this could help, but it essentially means that you are going to be paying one extra mortgage payment over the course of a year. By getting involved in a biweekly mortgage payment plan, you are going to be able to pay your mortgage off in approximately 7 years less than if you had made your normal payment with a 30-year mortgage. If you are considering getting involved in one of these programs, make sure that you are not paying too much for it. Many lenders want you to pay a setup fee and a regular maintenance fee just for them to deduct your payment every two weeks. 

Overpay Each Month

You can also make regular over-payments every month on your mortgage. For example, you might decide to pay an extra $50 or $100 on top of your regular monthly mortgage payment. Most people do not think that this can make much of a difference. However, small, regular over-payments are going to make a big difference in how long it takes you to pay off your mortgage. With each one of these small over-payments, you are essentially going to be cutting months off of the back end of your mortgage. Many people find that they are able to cut years off of their mortgage with this simple strategy.