How to Pay Off My Mortgage Faster

Paying off your mortgage can give you a great asset that is entirely yours. By paying off your mortgage faster, you will save on interest and be able to use that money towards something else and own your home at the same time. There are several methods and ways you can go about paying off your home mortgage faster.

Instructions

1

Pay more than the minimum on your mortgage each month. Good Housekeeping advises talking to your lender to make sure you can pay more without penalty.

2

Refinance your loan from a 30-year mortgage to a 15-year mortgage or even a 10-year mortgage. Although your monthly payments will go up, shorter-term loans also have lower interest rates meaning you will save money in the long run. Good Housekeeping notes that refinancing a $150,000 loan from 30 years to 15 years can save you over $100,000 in interest.

3

Begin new payment program ideas like the biweekly payment or the escalating plan. Good Housekeeping notes that by making payments biweekly you will pay the same amount but send one extra payment per year. That seems insignificant but Good Housekeeping notes that it can save you $37,000 in interest on a 30-year loan. The escalating plan idea is to increase your monthly payment by small amounts, as small as a dollar per month. According to Good Housekeeping, by doing this over a 30-year mortgage you can save over $50,000.