4 Ways To Pay Your Mortgage Faster

By David Brough

Hey there, I'm Dave Brough, and I'm proud to be the owner of Anthony REALTORS. As a seasoned Fort Wayne Realtor, I've learned that putting clients first, staying accessible, and being a great listener and communicator are the keys to success.

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. With a few smart tweaks to your payment strategy, you can save thousands of dollars in interest and shave years off your loan starting this year.

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 so easy that you’ll barely notice it.

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. Many lenders support biweekly drafts at no extra cost, so check with yours.

3. Put lump sums toward your principal. Got a bonus or tax refund coming? 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. Just be sure to label these payments as “principal reduction” so they hit your balance, not future interest.

4. Consider refinancing if the math works. Refinancing can still be a good option for some homeowners. Switching from a 30-year to a 15 or 20-year term can save tens of thousands of dollars in interest. Be sure to monitor your closing costs and rate changes closely. If the payment fits your budget and the break-even point is reasonable, 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 260-308-4335 or david@anthonyrealtors.com. I’m excited to help you take control of your mortgage and reach your financial goals.