"If you've decided early repayment is right for you, here are some practical ways to do it: Make extra principal payments: Add a little extra toward the principal each month or make an additional payment once or twice a year. Round up your payments: Instead of paying $1,250, round it up to $1,300. Those small amounts add up over time."
"Switch to biweekly payments: Paying every two weeks instead of monthly results in 26 half-payments, which equals 13 full payments each year instead of 12. This works out to roughly one extra monthly payment each year. Apply windfalls: Use tax refunds , bonuses, or side hustle income to pay down your mortgage balance. Refinance to a shorter term: A 15-year mortgage has higher monthly payments but significantly less interest over the life of the loan."
Paying off a mortgage early reduces interest costs and can increase financial security. Most lenders allow early payoff, though some mortgages include prepayment penalties, so confirm terms with the lender. Practical strategies include making extra principal payments, rounding up monthly payments, switching to biweekly payments to effectively add one payment per year, applying windfalls like tax refunds or bonuses, and refinancing to a shorter term such as a 15-year mortgage to lower total interest. Evaluate higher monthly payments versus interest savings and compare alternative uses of funds before accelerating repayment.
Read at Redfin | Real Estate Tips for Home Buying, Selling & More
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