Could You Pay Off Your Mortgage Faster?

Dated: September 20 2019

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If you're like most people, you'd love to pay off your house faster - but is that really possible without doubling up on payments? Check out these three tips that could help you pay down your principal and own your home outright before you're technically supposed to.

Could You Pay Off Your Mortgage Faster?

This isn't financial advice - we're real estate agents, not financial advisers - but here's what we've heard from our clients:

  • Make an extra payment each year
  • Pay a little extra each month
  • Switch to a shorter-term mortgage

Let's take a closer look at each of these.

#1. Make an extra payment each year

If you make an extra payment each year, in 12 years, you will have made an entire year's worth of additional payments. That can have a huge impact on how much money you pay in interest, and it can result in you paying off your entire loan faster.

#2. Pay a little extra each month

Even tacking on a small amount to your payment each month can make a big difference. Let's say you pay an additional $100 on your mortgage every month for a year - and at the end of the year, you've paid down an additional $1,200. Over time, that really adds up.

#3. Switch to a shorter-term mortgage

Refinancing to a shorter-term mortgage can have plenty of benefits. First, you might get a lower interest rate; second, you'll have to pay off your mortgage sooner than you originally expected to.

You should always talk to a financial adviser before you make any changes to your financial plan.

Blog author image

Chip Boyer

Chip is the IT Manager for Alex MacWilliam Real Estate. He handles the technology needs of the company as well as helping agents in their day to day problem solving.....

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