The Best Methods for Paying Mortgage Loans Fast

Paying off your mortgage early can save you tens of thousands of dollars.


Unless you win the lottery or hit a huge jackpot on a Las Vegas slot machine, you need a plan if you are going to pay off your mortgage early. How quickly you repay it depends on how much extra you can pay each month, and how much the total mortgage is. There are strategies that can help you pay it off early and save tens of thousands of dollars over the life of the mortgage.

Biweekly Payments

Many companies pay their employees biweekly, or every other week. An example is when you are paid every other Friday. This is different from being paid semimonthly, for example, when you are paid on the 15th and the 31st of each month. Because there are 52 weeks in a year, and you are paid every other week, you are paid 26 times. If you save half of your mortgage payment from each paycheck, you will have 26 half-payments, which equals 13 full payments. Making just this one extra payment can reduce your mortgage by five to seven years. Some mortgage companies have this option available, but others will require you to administer it yourself or hire an outside company to do it for you. Beware of excessive fees a biweekly mortgage payment company might charge.


Refinancing your loan can help you pay it off quicker. If you refinance into a shorter term loan, from a 30-year to a 15-year, you will pay it off in half the time. Often shorter term loans have lower interest rates. You can also keep your loan a 30-year and apply the savings to paying down the loan balance each month. If your principal and interest payment is $800 each month and you refinance the loan into a $650 payment, keep making the $800 payment each month. Paying the $150 difference each month will accelerate your loan’s payoff.

Regular Extra Payments

Budget regularly scheduled extra payments. If your monthly budget allows, apply a little extra each month. Pay as much as you can afford. If you are paid bonuses or commissions on a quarterly or annual basis, you can use these funds to make regular extra contributions to your mortgage as well. Ensure you have liquid savings as you build equity in the home. In an emergency, it may be hard to access the equity in your home quickly unless you have a home equity line of credit.


Let your family members know you want to pay off your home, and instead of holiday or birthday gifts, ask for cash to apply to your mortgage. Foregoing large parties and expensive gifts by applying those funds to your mortgage can reward you with taking years off your mortgage and saving thousands of dollars of interest.

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