4 Ways To Pay Off My Mortgage Faster

By
Mortgage and Lending with GMH Mortgage Services LLC NMLS #126036

For most people, the mortgage payment is the biggest monthly expense. Whether you’re facing retirement or still working, it would be nice to be free of this debt. Although you probably can’t pay it off in one lump sum, it is possible to pay off your mortgage sooner than expected.

Here are four strategies to try.

1. Make Bi-Weekly Payments

You could shave eight years off a 30-year mortgage simply by breaking down your monthly payments into two payments instead of one. You’ll pay the same amount each month while the interest paid over the length of the loan is reduced. 

2. Make Principal-Only Payments

If you look at your mortgage payment slip, you’ll notice that the majority of your monthly payment goes toward interest. Slash years off your mortgage by making occasional principal-only payments on top of your regular payments. Consult your lender to see how many of these are allowed per year. If they’re limited, maximize each opportunity by making as large a principal-only payment as you can manage.

3. Refinance When Rates Drop

If your mortgage originated when interest rates were high, refinance it now that rates are still historically lower. You may need to pay closing costs, but you’ll still end up dramatically lowering the amount of interest you are paying on your mortgage. While you’re at the refinancing game, consider getting into a shorter term length. This tactic will probably increase your monthly payment, but if you can afford it, it’s a good strategy for paying down your mortgage quicker.

4. Pay Extra Each Month

If you can afford it, pad your monthly payment with a little extra as often as possible. Just paying $50 or $100 extra will enable you to get rid of your mortgage a little faster. Find the extra money by cutting back on small niceties, such as subscriptions, take-out food and more. You won’t notice the lack of small conveniences, but you will certainly notice a shortened mortgage loan term.

When you work to pay off your mortgage faster, you essentially save thousands of dollars in interest over the life of the loan. Implement one or more of these ideas to become mortgage-free just a little bit sooner.

If you are interested in refinancing your home, be sure to contact your trusted home mortgage professional.

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For help or questions contact:

Joe Gonzalez

Senior Loan Consultant -  NMLS #126036
GMH Mortgage Services, LLC
625 W. Ridge Pike, Building C, Suite 100 | Conshohocken, PA  19428 | Direct: 610-355-8039 |  Cell: 610-739-6563

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Topic:
Home Buying
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Pennsylvania Montgomery County Conshohocken
Tags:
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Rainmaker
640,225
John Juarez
The Medford Real Estate Team - Fremont, CA
ePRO, SRES, GRI, PMN

Excellent advice, Joe Gonzales. For those who have the extra cash, paying down a mortgage is an excellent use of funds that could have been spent on the extra latte or two or three or ....

And it is really building up savings since the equity grows that much faster.

Apr 09, 2019 08:25 PM #2
Rainmaker
1,263,011
Carol Williams
Although I'm retired, I love sharing my knowledge and learning from other real estate industry professionals. - Wenatchee, WA
Retired Agent / Broker / Property Manager

Hi Joe,
Great points.  I don't think most people realize how much additional equity they can build over time by practicing the tips you suggested.  My husband and I used each one of those strategies over the years. I've done a lot of playing with various scenarios on ammortization tables over the years and it's fascinating. 

Apr 10, 2019 09:29 AM #3
Rainmaker
1,385,067
Kat Palmiotti
Grand Lux Realty, Monroe NY, 914-419-0270, kat@thehousekat.com - Monroe, NY
The House Kat

Paying extra really does speed up the process.

Apr 13, 2019 03:13 AM #4
Ambassador
1,788,512
Debb Janes EcoBroker and Bernie Stea JD
ViewHomes of Clark County - Nature As Neighbors - Camas, WA
REALTORS® in Clark County, WA

Happy to say we are mortgage free. What a wonderful feeling too. I appreciate these tips, Joe. It's almost like magic. Ha. 

Apr 13, 2019 07:34 AM #5
Rainer
359,107
Jana Holmstrup
Jana Holmstrup - CEO - Kings Mortgage Services, Inc. - Visalia, CA

Great advice that we also used to pay off our mortgages.  Getting people to focus on what's going to principal - and then doubling that amount - will get you in a habit and get it paid off quick!  Each time you can do that, it knocks a month off the term.

Apr 16, 2019 06:33 PM #6
Rainmaker
246,643
Doug Kaller
Academy Mortgage, Reno, NV - Reno, NV

Following these tips will not only pay off your loan faster but should you sell, you will have more equity for a down payment on your next home. The added equity also may result in a lower interest rate or costs should you refinance. Your first tip was bi-monthly payments. There is a cost for setting up a bi-monthly payment program. I prefer adding 1/12th each month to your payment. This will achieve the same result without the added cost. 

Apr 17, 2019 09:56 AM #7
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Joe Gonzalez

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