From Yahoo Finance: 2024-06-12 17:01:00

Paying off a mortgage early is a homeowner’s dream, but it usually takes decades. To speed up the process, consider making biweekly payments. These extra payments can shave years off your loan and save you thousands in interest. Another option is to make one extra payment per year, reducing your principal balance faster.

Refinancing your mortgage to a lower rate or shorter term can also help you pay off your loan faster. By securing a lower rate, you can reduce your interest costs and potentially shorten your payoff time. Consider rounding up your mortgage payment or using windfalls to make additional payments towards your principal balance.

Recasting your mortgage is another strategy to pay off your loan early. By making a lump sum payment towards your principal balance, you can re-amortize your loan and potentially reduce your monthly payments. However, not all lenders offer recasting, and there may be fees involved.

When considering paying off your mortgage early, ensure it aligns with your financial goals. It can be a smart move if you need to free up cash flow and have no prepayment penalties. However, if your interest rate is extremely low, you may be better off investing your extra funds for higher returns. Always consult with a financial advisor before making any decisions.

Read more: 7 ways to pay off your mortgage faster