7 Ways to Pay Off Your Mortgage Faster

Key takeaways

• Putting extra money toward principal may reduce the interest you pay over time and shorten your mortgage term.¹

• Making one extra mortgage payment a year or using a biweekly payment schedule are two ways to increase the amount you put toward your loan each year.¹

• Refinancing to a shorter term may help you pay off a mortgage faster, though the monthly payment may increase and refinancing can come with closing costs.²

• Check with your lender or servicer to make sure extra payments are handled as intended and review your loan terms for any prepayment penalty.³

• Paying off a mortgage early isn’t automatically the best use of extra cash for everyone. Consider emergency savings, other debt, retirement and upcoming expenses before deciding where that money should go.

Can you pay off your mortgage early?

Yes. You can generally pay off a mortgage early by making additional payments toward principal or paying the remaining balance in full. Before making extra payments, review your loan terms for any prepayment penalty and ask your lender or servicer how additional payments should be designated.³

More than likely, the mortgage on your home is the largest loan you’ll ever take out. With monthly payments that can last for years or even decades and interest rates that dramatically increase the total price of your home beyond the purchase price, a mortgage is a huge part of any homeowner’s budget.

Paying down principal faster may reduce the amount of interest you pay over the life of the loan. But whether accelerating your mortgage belongs near the top of your financial priorities depends on your broader financial picture.

For example, a borrower who has excess cash to pay off the mortgage but knows they’ll need those funds for future college expenses for a child, keeping the mortgage open might make more sense.

How to pay off your mortgage faster

There isn’t one fastest way to pay off a mortgage that works for everyone. The approach that makes sense for you depends on:

• Your loan

• How much extra money you can comfortably put toward it

• How mortgage payoff fits into your broader financial plan

1. Pay extra toward principal each month

One way to pay off a mortgage faster is to add something extra to your regular payment and have it applied to principal. Reducing the outstanding principal means future interest is calculated on a smaller balance, which may reduce total interest and shorten the time it takes to repay the loan.¹

You don’t necessarily have to make a large jump. You could choose a set extra amount or round up a payment — for example, from $1,875 to $1,900 — if that fits your budget.¹

Keep in mind that making an extra principal payment does not normally change the required monthly principal-and-interest payment on a fixed-rate mortgage. Instead, it reduces the balance you’re paying down over time.

“The savings comes on the backend of the loan,” Goldberg said. “Making an extra payment every year would reduce a 30-year loan by about 4-5 years depending on the rate.”

2. Make extra payments when you receive bonuses or refunds

A tax refund, annual bonus or other cash windfall can also be used to make an extra principal payment. Check with your mortgage servicer about how to designate the payment so it goes toward principal rather than being treated as an early regular payment.¹

Even an occasional extra principal payment may shorten the loan and reduce interest over time. If you’re deciding where a larger amount of extra cash should go, think about how paying off your mortgage early fits alongside your emergency savings, other debt and near-term financial goals.¹

3. Make one extra mortgage payment each year

Making an extra mortgage payment a year helps by reducing your principal sooner, which means less of your balance remains for future interest to be calculated on. How much time and interest you may save depends on your balance, interest rate and remaining term.¹

Make sure your mortgage lender knows you want that extra payment applied to your principal balance and not counted as an early regular monthly payment.

Your servicer may have specific instructions for additional principal payments, especially when you pay online. Check your next mortgage statement to make sure the payment was applied as expected.

4. Consider biweekly mortgage payments

With a biweekly payment schedule, you generally make half of your monthly mortgage payment every two weeks. Over 52 weeks, that works out to 26 half-payments, equal to 13 full monthly payments instead of 12.¹

Ask your lender or servicer whether it accepts biweekly payments and how those payments will be processed. Another option is to keep your normal monthly schedule and make one additional principal payment during the year.

5. Refinance to a shorter loan term

Refinancing a 30-year mortgage into a shorter term, such as 15 or 20 years, may move your payoff date forward. A shorter term generally comes with a higher required monthly payment, though you may pay less interest over the life of the loan.¹

Should you refinance your mortgage to pay it off sooner? Look at more than the new interest rate. Refinancing can involve origination charges, third-party fees and other closing costs, so compare the new monthly payment, loan term and total costs with your current mortgage before deciding.²

6. If you refinance to a lower payment, consider continuing to pay more

If refinancing results in a lower required principal-and-interest payment, you could choose to keep paying an amount closer to your previous payment and direct the difference toward principal. Whether that approach makes sense depends on the new rate, loan term, closing costs and how long you expect to keep the mortgage.²

Goldberg recommends looking at the benefit of the refinance rather than relying on a single rate-change rule. “In those cases, even saving 0.5% in rate could generate tremendous savings,” Goldberg said. “The benefits of refinancing are unique to the individual and require an analysis with their loan officer to make the best decision.”

The amount of time or interest you may save will depend on the terms of both loans and how much extra you continue paying toward principal.

7. Redirect room in your budget toward your mortgage

If you want to make recurring extra payments, look at your existing budget for an amount you can reasonably direct toward principal without losing sight of other priorities.

Start by looking at what you spend each month on needs, wants and savings. A budget can make it easier to see whether there is room for an additional mortgage payment without committing money you may need elsewhere.

If your income changes or another expense ends, you can revisit the amount rather than assuming the same extra payment will always fit your budget.

Is it a good idea to pay off your mortgage early?

Paying off your mortgage early can make sense for some people, but it isn’t automatically the best use of every extra dollar. The decision is easier to evaluate when you look at the mortgage alongside the rest of your finances rather than on its own.

Before making a large payment, check your loan documents or contact your lender about prepayment terms. Some mortgages may charge a prepayment penalty for paying off all or a large portion of the loan early, although these penalties do not apply to every mortgage.³

As Goldberg noted earlier, the choice comes down to your current and planned needs and whether that money has a more useful role elsewhere in your financial plan.

What happens when you pay off your mortgage early?

When you’re ready to pay the mortgage in full, don’t rely only on the balance shown on your latest statement. Ask your lender or servicer for a payoff amount. That amount reflects what is needed to satisfy the mortgage as of a specific date and may include interest through that date, unpaid fees or a prepayment penalty if one applies.⁴

After the loan is paid, check your state or local property records to confirm the mortgage lien has been released.⁵

If your mortgage servicer had been paying property taxes and homeowners insurance through escrow, you’ll also need to plan for those expenses directly after the mortgage is paid off. Federal mortgage-servicing rules generally require remaining escrow funds controlled by the servicer to be returned within 20 days of full payoff, excluding Saturdays, Sundays and legal public holidays.⁶

The bottom line on paying off your mortgage faster

Putting extra money toward principal may shorten your mortgage term and reduce the amount of interest you pay. But paying off a mortgage early is only one financial goal, and the fastest payoff isn’t necessarily the right priority for every household.¹

As Goldberg notes, having a mortgage itself isn’t automatically a negative. “While everyone should strive to pay off their mortgage as quickly as possible, having a mortgage is not a bad thing,” he said. “A mortgage can be a smart financial vehicle to open up other opportunities to leverage your wealth.”

Frequently asked questions about paying off a mortgage early

Can you prepay a mortgage?

Yes. Prepaying a mortgage means paying more toward the loan ahead of schedule, whether through additional principal payments or by paying the remaining balance in full before the scheduled end of the loan. Check with your lender or servicer about how to apply extra payments to principal and whether your loan has a prepayment penalty.³

How can I pay off my 30-year mortgage in 10 years?

Paying off a 30-year mortgage in 10 years may be possible for some homeowners, but the extra amount required depends on your remaining balance, interest rate and how far you are into the loan. Start with your current mortgage balance and compare how different additional principal payments would change the payoff date. Your lender or servicer can give you figures based on your actual loan.

What happens if I pay an extra $100 a week on my mortgage?

An extra $100 a week adds up to about $5,200 over a year. If those payments are applied to principal, they may reduce your balance faster and lower the amount of interest you pay over time. The exact impact on your payoff date depends on your remaining balance, interest rate and loan term.¹

What is the 2% rule for mortgage payoff?

There isn’t a universal rule that says you should refinance only when you can lower your mortgage rate by 2 percentage points. Instead, compare the new rate and term with closing costs, your monthly payment and how long you expect to keep the loan. Goldberg notes that even a smaller rate change may be meaningful depending on the borrower’s circumstances, which is why the full refinance should be evaluated rather than relying on one percentage threshold.²

Sources

1. Freddie Mac. (2026, January 15). Is There a Faster Way to Be Mortgage-Free? https://myhome.freddiemac.com/blog/homeownership/pay-off-mortgage-faster

2. Consumer Financial Protection Bureau. (2025, January 14). What costs come with taking out a mortgage? https://www.consumerfinance.gov/ask-cfpb/what-costs-come-with-taking-out-a-mortgage-en-153/

3. Consumer Financial Protection Bureau. (2024, September 11). What is a prepayment penalty? https://www.consumerfinance.gov/ask-cfpb/what-is-a-prepayment-penalty-en-1957/

4. Consumer Financial Protection Bureau. (2026, August 28). What is a payoff amount and is it the same as my current balance https://www.consumerfinance.gov/ask-cfpb/what-is-a-payoff-amount-and-is-it-the-same-as-my-current-balance-en-205/

5. Consumer Financial Protection Bureau. (2024, September 11). After I have paid off my mortgage, how do I check if my lien was released https://www.consumerfinance.gov/ask-cfpb/after-i-have-paid-off-my-mortgage-how-do-i-check-if-my-lien-was-released-en-206/

6. Consumer Financial Protection Bureau. Regulation X § 1024.34: Timely escrow payments and treatment of escrow account balances. Current regulation https://www.consumerfinance.gov/rules-policy/regulations/1024/34/