How to Pay Off Your Mortgage Early – Six Easy Ways!

Oct 29, 2021 | Budgeting, Get Out of Debt

Are you tired of being weighed down by your mortgage? Do you dream of being debt-free and owning your house outright? You're in luck, friend! Keep on reading and we'll show you how to pay off your mortgage early and finally taste that freedom!

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Getting the keys to your first home can be an unbelievably exciting moment! Until the excitement wears off and you realize you're now tied to this massive debt… ouch! Considering most home mortgage terms are thirty years, it can seem nearly impossible to get out from under that weight. In fact, you may not have ever even thought it was a possibility… That is, until now!

We're here to show you that your dream of being mortgage-free IS possible and it doesn't have to take you thirty years to get there! We've compiled all the things you need to know to learn how to pay off your mortgage faster and make that dream a reality. Let's do this!


Hands handing the key to a house over from Fun Cheap or Free.

For most of us, the mortgage is our largest debt and it can seriously weigh heavy on our financial lives! Talk about a stressor. Do you long for freedom—to be out from under the pressing weight of your mortgage? We feel you! Keep on reading for all the ins and outs so you can learn how to pay off your mortgage faster!


Before we get into the nitty-gritty of how to pay off your mortgage faster, we need to discuss some of the potential cons of doing so! You may be ready to get out of the weight of debt your mortgage presents, but most financial experts actually recommend funneling that extra cash into a retirement fund or investing it, so it can grow instead. Here are a few things to consider before deciding to pay off your mortgage early.

  • How Long You Will Be There – If you're planning to move after a few years, most experts say it's not worth trying to pay down a mortgage early. Invest that money instead or keep it in savings.
  • What You Will Be Sacrificing – If you are sacrificing putting money into other accounts, like your emergency savings account, it's better that you don't. It is much more valuable to have several months' worth of income saved up in case of a worst case scenario. Read more about why you need an emergency savings account in this post!
  • Possible Penalties – Before you plan to pay off your mortgage faster, check with your bank to be sure you won't be penalized for doing so.

After consideration, if you're still ready to pay off your mortgage faster and get out of debt, keep reading for the best ways to do just that!


There are lots of options when it comes to paying off your mortgage ahead of schedule. Keep reading for our best tips and tricks to make it happen!


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There are several ways to make extra mortgage payments, some you'll hardly even notice! Here are our favorites:

  • Bi-Weekly Payments – Instead of making payments once a month, split your monthly amount in half and pay that amount every two weeks. Since some months have five weeks, you'll actually end up making an extra payment by the end of the year! You'll end up paying a little bit more over the course of the month, but you won't even notice it.
  • Round Up Your Payment – You can also round your payments up in order to make small extra payments regularly. If your mortgage payment is $1,432, round that up to $1,500 and pay that amount monthly instead. It may not seem like much at the time, but it will save you big on interest in the long run! 
  • Make a Bonus Payment – Try to make at least one bonus mortgage payment a year. Do that on top of rounding up or paying biweekly and you'll really make a dent in that debt! 
  • Lump Sum Payment – If you've suddenly come into a lump sum of money (think tax return, commission, etc.) that you want to put toward your mortgage, make sure it can be applied to principal only so you can save on interest in the long run!

These easy ways to make extra payments will help you start chipping away at that debt in a big way! Need some tips coming up with extra money to put toward the payments? Check out our post on how to turn your side hustle into a profit!


Refinancing your mortgage can be a great option for those who may be eligible for a lower interest rate. If your goal is to pay off your mortgage quickly, you can refinance for a shorter term. This will mean higher payments monthly, but big savings in interest over the life of your loan!


Another option for some may be to recast your mortgage. In order to recast your loan, you must make a substantial lump sum payment. Unlike refinancing, recasting your loan keeps your existing interest rate and term intact. After considering your lump-sum payment, a recast lowers your monthly payment to reflect your remaining balance over the same term.

This may not be ideal if you are trying to pay off your mortgage faster, but it's a great way to lower payments and save on interest! Recasting isn't an option for every loan, so check with your bank to see if you're eligible.

No matter what your reason is for wanting to pay off your mortgage early, use these tips and your dream of being mortgage-free will be a reality before you know it. You can do this!

What is your biggest motivating factor for paying off your mortgage early? Share with us in the comments below!

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