5 Hacks to Pay Off Your Home Loan Sooner



Despite many financial experts advising homeowners not to pay off their home loan early but to invest the money elsewhere, home ownership is still one of the primary goals for most Americans. The obvious advice of making the largest possible deposit on your home in the beginning to reduce the size of the mortgage goes without saying. But you don’t have to get lost in the fantasy of owning the house outright when you can follow these tips which will help you make the dream a reality faster than you expected. 

1. Make Higher Repayments

Making higher repayments on your mortgage means you will save a lot of money. If you get a cheaper loan, make sure you can make extra payments and treat it as if the rate is two or three points higher. For example, if your rate is four per cent, and you pay it off as if it’s five per cent you’ll pay it off much sooner, and save heaps. If you only pay one extra monthly payment each year, you’ll pay your mortgage off 11 years sooner, and save thousands of dollars in interest. 

2. Make Fortnightly Repayments

The concept of a fortnightly repayment is simple. If your lender or mortgage deal allows it, pay half of your monthly mortgage repayments every two weeks. That adds up to 13 full monthly payments every year. Depending on your interest rate, this can mean your 30-year mortgage is paid off eight years earlier. Another way of reducing your loan period without feeling it in your pocket is to pay a few dollars a week extra into your home loan. The balance will reduce sooner because these payments come right off the balance. 


3. Refinance For A Shorter Term

You can refinance for a shorter term loan to pay off your mortgage sooner. If your loan is over 30 years, having it to 15 or even 10 years will make your payments higher, but you will own your home outright in a fraction of the time. But make sure you get a lower interest rate to make it worthwhile. 

4. Reconfigure Payments But Don’t Refinance

To help you reach your early pay-off goal, ask your lender to show you how much you would be paying a month at various time frames at the same interest rate. For example, if your loan is over 30 years, ask what the payment would be over 15 or 10 years, or whatever you think would better suit you. Or You could also try Bankrate’s mortgage payment calculator(1) to work it out for yourself. 


5. Make Lump Sum Payments

You can reduce the time it takes to pay off your mortgage by adding any extra lump-sum payments to your principal. If you have a windfall, inheritance, a tax refund or work bonus, you can use it to chip away at your loan. If you leave the extra cash in another account, you might be tempted to spend it on things you could do without. Even if your lump sum is only small, it will help you whittle away your loan, but always follow your lender’s rules for making principal-only repayments, in case you are charged a prepayment penalty for paying the mortgage off early.


For all your real estate needs, whether buying or renting in Deltona Florida, call 

Julie Cvercko on 386-668-8668 or email Julie@primerealestateinc.com.





  1. https://www.bankrate.com/calculators/mortgages/mortgage-loan-payoff-calculator.aspx


    Author’s Bio 


    Alex Morrison has worked with a range of businesses giving him an in-depth understanding of many different industries including outdoor blinds, financial support, and health care. As the owner of Integral Media, he is now utilizing his knowledge and experience with his rapidly increasing client portfolio to help them achieve their business goals.