How to Pay Off Your Mortgage 5 Years Early

Want to save $50,000 in interest and own your home outright sooner? Discover actionable financial strategies to rapidly accelerate your mortgage payoff.

The Secret is the Principal

The key to paying off your mortgage early is making extra payments directly toward the principal balance. Because mortgages are heavily front-loaded with interest, reducing the principal balance early on has a massive compounding effect on the total interest you pay over the life of the loan.

Strategy 1: Bi-Weekly Payments

Instead of making one full payment a month (12 payments a year), divide your payment in half and pay it every two weeks. Since there are 52 weeks in a year, you will make 26 half-payments, which equals 13 full payments. That one extra payment a year can shave 4 to 5 years off a 30-year mortgage!

Strategy 2: Round Up Your Payments

If your monthly payment is $1,345, consider rounding it up to $1,500 and instructing your lender to apply the extra $155 to the principal. You likely won't miss the small difference in your monthly budget, but the long-term savings are tremendous.

Run the Numbers

Want to see exactly how much time and money you can save with extra payments? Check out our Mortgage Calculator to visualize your accelerated amortization schedule and take control of your debt.