Tips for Accelerating Mortgage Repayment: Extra Payments, Refinancing, Loan Terms

Table of Contents


Owning a home is a dream for many, but the burden of a mortgage can sometimes feel overwhelming. However, there are strategies you can employ to accelerate your mortgage repayment and achieve financial freedom sooner than you think. In this guide, we’ll explore some effective tips to help you pay off your mortgage faster.

Make Extra Payments: One of the most straightforward ways to pay off your mortgage quicker is by making extra payments whenever possible. Even small additional payments can make a significant difference in the long run. Consider allocating any windfalls, such as bonuses or tax refunds, towards your mortgage principal. Additionally, you can set up a bi-weekly payment plan instead of monthly payments, effectively making an extra payment each year without feeling the strain.

Refinance Wisely: Refinancing your mortgage can be a powerful tool to accelerate repayment, especially if you can secure a lower interest rate. Lower interest rates mean more of your monthly payment goes towards the principal rather than interest, reducing the overall term of your loan. However, it’s crucial to weigh the costs of refinancing against the potential savings. Calculate your breakeven point to determine if refinancing is financially beneficial for you.

Opt for a Shorter Loan Term: While a 30-year mortgage may offer lower monthly payments, opting for a shorter loan term, such as a 15-year mortgage, can significantly reduce the total interest paid over the life of the loan. Although monthly payments will be higher, you’ll own your home outright in half the time and save thousands in interest. If a 15-year term seems too steep, consider a 20 or 25-year term for a balance between affordability and accelerated repayment.

Automate Your Payments: Setting up automatic payments ensures that you never miss a mortgage payment and can even help you make additional payments without having to think about it. Many lenders offer autopay options that allow you to schedule extra payments towards the principal. By automating your payments, you eliminate the temptation to spend that money elsewhere and stay on track with your repayment goals.

Cut Expenses and Redirect Savings: Take a close look at your monthly expenses and identify areas where you can cut back. Whether it’s dining out less frequently, canceling unused subscriptions, or reducing utility costs, every dollar saved can be redirected towards your mortgage. Consider adopting a minimalist lifestyle and focus on your financial goals to stay motivated.

Utilize Windfalls Wisely: Unexpected windfalls, such as inheritance or a work bonus, provide an excellent opportunity to make significant strides in your mortgage repayment journey. Instead of splurging on luxury items, consider putting these windfalls towards your mortgage principal. While it may not be the most exciting use of the money, it will pay off dividends in the form of reduced interest payments and a shorter loan term.

Rent Out a Portion of Your Property: If your home has extra space, such as a basement apartment or a spare bedroom, consider renting it out to generate additional income. The rental income can be used to make extra mortgage payments, effectively accelerating your repayment timeline. Just be sure to check local regulations and consider the potential impact on your lifestyle before becoming a landlord.

Stay Financially Disciplined: Ultimately, accelerating your mortgage repayment requires discipline and commitment to your financial goals. Avoid taking on additional debt, such as car loans or credit card debt, which can derail your progress. Stay focused on your long-term objectives and celebrate small victories along the way to stay motivated.


In conclusion, paying off your mortgage faster is achievable with the right strategies and mindset. By making extra payments, refinancing wisely, opting for shorter loan terms, automating payments, cutting expenses, utilizing windfalls, renting out a portion of your property, and staying financially disciplined, you can accelerate your mortgage repayment journey and achieve financial freedom sooner than you ever imagined. Remember, every little bit counts, so start implementing these tips today and watch your mortgage balance shrink faster than you thought possible.

Leave a Comment

Your email address will not be published. Required fields are marked *

Scroll to Top