buyerloanmortgageMortgagespointsre-firefinancingsellerTricks of the Trade August 9, 2023

3 Ways to pay off your mortgage early

Image text: 3 ways to pay off your mortgage early


Paying off a mortgage early is a dream of many homeowners. However, economic factors can make it seem like an
unattainable goal. With some careful planning and initiative, however, there are ways to pay off your home loan
before your term limit.


1. Refinance your mortgage


If you’re considering making larger payments on your mortgage, it might make sense to investigate your refinancing
options. If you can afford to increase your mortgage payments significantly each month, you could refinance a
30-year to a 15-year mortgage. This will cut the number of interest payments in half and likely also give you a
lower rate.


2. Make extra payments


Another option is to simply increase your monthly payments. Depending on your mortgage lender, you may be able to
double your auto-pay amounts each month, streamlining the process. Otherwise, it’s possible to set up bill-pay with
most banks to automatically transfer funds to your lender.


3. Bi-weekly payments or one extra payment per year


Making bi-weekly instead of monthly payments is an option that many homeowners use to pay off their mortgages early.
Bi-weekly payments work by paying half of your monthly payment once every two weeks.


By switching from 12 monthly to 26 bi-weekly payments, you can effectively make 13 full monthly payments in a year
without seeing too much of a difference in your daily budget. Over 30 years of an extra monthly payment, you could
save nearly thousands of dollars on interest and pay off your mortgage several years early.


These are only a few options for homeowners interested in paying off their mortgage early. For more information,
speak with your mortgage lender for guidance on your specific situation.