How Can You Pay Off Your Mortgage Without Breaking the Bank?



If you want to pay off your home mortgage quicker, there are a few ways you can do so without breaking the bank.


I don’t know about you, but if I had a home mortgage I’d want to get rid of it as quickly as possible. Did you know there are some great ways you can pay off your home mortgage without breaking the bank?

There are many ways to get rid of your home mortgage.

The first and most common is paying it in 13 installments per year. For example, if you have a 30-year, $200,000 loan at 4.5% interest and you pay that extra 13th payment, you’ll save $27,000 over the life of that loan and pay it off four-and-a-half years sooner.

If you want to be more aggressive and pay the loan off even sooner, you can make one extra payment per quarter. Instead of doing one extra payment per year, you’d make four extra payments. For that same loan, you’d save $65,000 in interest and pay it off 11 years sooner.

If you think you can’t pay either of those amounts, you can also do a refinance. Refinancing is bad in the sense that it pushes all of your interest up to the front of your loan, so you’re repaying a lot of interest again. However, you can change that 30-year loan to a 10- or 15-year loan, force yourself to make the payment that way, and pay it off quicker.

You don’t have to pay a whole payment, either. One of the cool things we ask people to do when they make a payment each month is look at their amortization schedule.

Let’s say your payment is $1,000 and the principal portion of that is $100. All you have to do is write a $1,000 check for your house payment, write an additional check for $100, and say you want that applied to your principal. Next month when you write your $1,000 house payment check, the principal will rise slightly to $110. Again, write that extra $110 check. If you can consistently do that, you’ll pay off your 30-year loan in approximately 17 years.

If you have any questions about paying off a home loan or would like to speak to a mortgage professional, don’t hesitate to shoot me an email. I’d be happy to help you.