Strategies for Paying Down Your Mortgage Sooner

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Purchasing a home is often one of the biggest financial decisions we make in our lifetime. It comes with a sense of accomplishment and security, knowing that you have a place to call your own. However, it also comes with a significant financial responsibility in the form of a mortgage. Paying off a mortgage can take decades, and the thought of being tied down to such a long-term debt can be overwhelming. That’s why many homeowners are looking for ways to pay off their mortgage sooner. In this blog post, we will discuss some effective strategies for paying down your mortgage sooner.

1. Make Bi-Weekly Payments

The traditional mortgage payment schedule consists of 12 equal monthly payments per year. By making bi-weekly payments, you can essentially make an extra monthly payment each year. This strategy can significantly reduce the life of your mortgage, and you can pay it off several years earlier.

For example, if your monthly mortgage payment is $1,500, making bi-weekly payments of $750 would result in 26 payments per year, which is equivalent to 13 monthly payments. This extra payment can go towards paying down your principal balance, reducing the interest you owe, and ultimately shortening the life of your loan.

2. Increase Your Monthly Payments

Another effective strategy for paying down your mortgage sooner is to increase your monthly payments. Even a small increase of $50 or $100 can make a significant impact in the long run. By increasing your monthly payments, you are paying more towards the principal balance, which means less interest to be paid over time.

To see the potential savings, use an online mortgage calculator to calculate how much you could save by increasing your monthly payments. You will be surprised to see how much time and money you can save by just increasing your payments slightly.

3. Make Lump Sum Payments

If you come across some extra cash, whether it’s a bonus from work, a tax refund, or inheritance, consider putting it towards your mortgage. Making lump sum payments can significantly reduce your principal balance and, in turn, reduce the overall interest you owe. This strategy can help you pay off your mortgage sooner and save thousands of dollars in interest over the life of the loan.

4. Refinance to a Shorter-Term Loan

If you have a 30-year mortgage, consider refinancing to a shorter-term loan, such as a 15-year or 20-year mortgage. Although your monthly payments may increase, you will save a significant amount of money in interest over the life of the loan. Plus, you will pay off your mortgage much sooner, giving you financial freedom in the long run.

It’s important to note that refinancing comes with closing costs, so make sure to do your research and calculations to ensure it makes financial sense for you.

5. Avoid Private Mortgage Insurance (PMI)

If your down payment is less than 20% of the purchase price of your home, you may be required to pay for private mortgage insurance (PMI). This insurance protects the lender in case you default on your loan. However, PMI can add a significant amount to your monthly mortgage payment, which can hinder your ability to pay it off sooner.

The best way to avoid PMI is to save up for a larger down payment. If that’s not possible, you can request to have your PMI removed once you have paid down enough of your mortgage or when your home’s value has increased.

6. Make Strategic Use of Extra Income

If you receive bonuses, commissions, or any other form of extra income, consider using it towards your mortgage. These extra funds can go towards paying down your principal balance or making lump sum payments, which can significantly reduce the life of your mortgage. However, it’s essential to have a plan in place for any extra income you receive, so you don’t end up spending it on unnecessary expenses.

7. Cut Back on Other Expenses

One of the most effective ways to pay down your mortgage sooner is to cut back on other expenses. Take a look at your budget and see where you can make some adjustments. Perhaps you can reduce your dining out budget, cancel subscriptions you don’t use, or find ways to save on monthly bills. The money saved from these cutbacks can go towards your mortgage payments.

8. Consider a Bi-Weekly Payment Plan

Some mortgage lenders offer bi-weekly payment plans, which can help you pay off your mortgage sooner. With this plan, you make half of your monthly mortgage payment every two weeks. This results in 26 half-payments per year, which is equivalent to 13 full monthly payments, just like making bi-weekly payments mentioned earlier.

However, it’s important to check with your lender to see if there are any additional fees for setting up this payment plan.


In conclusion, paying off your mortgage sooner is not an impossible task. With these strategies, you can reduce the life of your mortgage and save thousands of dollars in interest. It’s important to remember that every little bit counts, so even if you can only implement one or two of these strategies, it can make a significant impact over time. And remember, the sooner you pay off your mortgage, the sooner you can enjoy financial freedom and peace of mind.

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