4 Ways To Pay Your Mortgage Faster

Tired of watching so much of your hard-earned money go toward interest instead of your home? You don’t need a massive income boost or a complicated financial plan to get ahead on your mortgage. Even small monthly adjustments can make a big difference.

I recently spoke with a homeowner who thought refinancing was the only way to pay off their loan sooner. They had no idea that a few simple changes could save them over $30,000 in interest and cut nearly ten years off their term.

To help you get ahead on your mortgage and put your money to work in 2025, here are four practical tips you can start using right now:

1. Make one extra payment per year. Even one extra payment a year can make a big difference. You can do this by dividing your monthly payment by twelve and adding that amount to your payment each month. Over the year, that equals one full extra payment, often trimming four to five years off a 30-year loan. Automating the payment makes it easy and consistent.

2. Switch to biweekly payments. Instead of paying once a month, make half your payment every two weeks. Since there are 52 weeks in a year, you’ll end up making 26 half payments, which equals 13 full payments annually. That extra payment goes straight toward your principal, helping you cut down your loan faster and the schedule often feels more manageable. Many lenders support biweekly drafts at no extra cost, so check with yours.

3. Apply windfalls strategically. Got a bonus, tax refund, or side income coming in? Don’t let it sit in your checking account. Apply it directly to your principal balance. Even one or two principal-only payments a year can significantly reduce your total interest and shorten your loan term. Be sure to label these payments as “principal reduction” so they are applied to your balance, not future interest.

4. Consider refinancing if the math works. If you can handle slightly higher payments, switching from a 30-year to a 15 or 20-year term could save you tens of thousands of dollars in interest. Just watch your closing costs and rate changes closely. This strategy works best when the math is clearly in your favor, but if it fits your budget, refinancing can be a powerful way to reach mortgage freedom sooner.

Paying off your mortgage faster is simpler than it seems. With a few smart moves like adding an extra payment, switching to biweekly payments, using windfalls wisely, or refinancing, you can save thousands and reach financial freedom sooner.

If you’re looking to pay down your mortgage faster, build equity, or just want to understand how different strategies could work for your home, call me at (203) 648-4043 or send an email to AndySachs@AroundTownCT.com. I’m excited to help you take control of your mortgage and reach your financial goals.