How to Pay Off a Mortgage Faster

Buying a house is a long-term commitment. It’s also a big investment opportunity, with a lot of incentive to accumulate equity as quickly as you can if you don’t think that you’ll be in your home for the full 30-year term of a traditional mortgage. Putting in the effort to pay off a home faster could mean more money in your pocket when you go to sell later on. It could also help you chip away at both your principal and your interest so that you’re free from your mortgage sooner rather than later—an endeavor that may be worth it for those homeowners who do plan to stay put.

If you’ve decided that you want to pay off your home faster, there are a number of different strategies that can help you make it happen. Get started by choosing one or mix and matching a few that align with your budget and goals.

How to pay off a mortgage faster

Round up your monthly payment

Make an extra quarterly payment

Pay biweekly instead of monthly

Look into mortgage refinancing

Go for a shorter term mortgage

Recast your mortgage

Allot all or a portion of all extra cash to your mortgage

Invest wisely at the outset

Is it smart to pay off your home early?

Now you know how to pay off a home faster, but is it something that’s worth pursuing? That depends on what your long-term goals are.

Some good reasons to pay down your mortgage faster include:

    • Eliminating debt
    • Freeing up cash for other uses in the future
    • Reducing the overall interest cost on your loan
    • Getting rid of your PMI (private mortgage insurance), if applicable
    • More equity, which will come in handy if you want to take out a HELOC
    • Owning your home faster

    All of these are good reasons to pay off a home faster, but it’s important that you consider them in light of the possible disadvantages. Some of the cons to paying off a mortgage quickly include:

      • Taking cash away from other investment opportunities, including retirement
      • Having less cash on hand for emergency needs
      • Possible penalties for early payment from your mortgage provider
      • Losing out if the value of your home drops

      Keep in mind that while a house is certainly an investment, it is also considered a non-liquid asset. This means that there’s no guarantee on how quickly you’ll be able to access the capital later on if you need it since it can take weeks, months, or even longer to sell—plus you don’t know if you’ll be able to sell for a profitable return.

      If you’re unsure what your best bet is, work with a financial planner to outline your current financial situation and future financial goals; then see how a faster mortgage payoff would help or hurt your plans. Note that it is certainly possible to only make higher or additional payment on occasion, and that if some months or years it doesn’t make sense to pay extra you are under no obligation to do so.

      Try our mortgage payment calculator

      Check out our mortgage payment calculator and find out how quickly you can pay off your mortgage with extra monthly or annual payments, switching to biweekly payments, or opting for 15-year term mortgage instead of a 30-year term. When you plug in the details, you’ll get an amortization table that shows you just how quickly you can pay off your mortgage with each strategy. See what makes the most sense for you, then start taking steps to put your plan into action and own your home a whole lot faster.