1. Make Extra Principal Payments

Adding even a small amount to your monthly payment and applying it directly to the principal can significantly reduce the interest you pay and shorten your loan term.

Tip: Confirm with your lender that extra payments are applied to the principal, not future payments.

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2. Make Biweekly Payments

Instead of making one mortgage payment each month, consider making payments every two weeks.

Because there are 52 weeks in a year, this schedule results in 26 half-payments—or the equivalent of 13 full monthly payments each year.

That extra payment can help reduce your principal faster and potentially save you money on interest.

Tip: Check with your lender to make sure your payment schedule is set up correctly and that additional amounts are applied toward your principal.

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3. Use Windfalls Wisely

Tax refunds, bonuses, commissions, gifts, or other unexpected income can provide an opportunity to make a larger payment toward your mortgage.

Instead of spending the entire amount, consider putting a portion toward your principal.

Even occasional lump-sum payments can help reduce your balance and the amount of interest you pay over time.

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4. Round Up Your Mortgage Payment

Another simple strategy is to round your payment up.

For example, if your monthly mortgage payment is $1,475, you could pay $1,500 instead.

That additional $25 may seem small, but consistent extra payments can add up over the life of your loan.

Tip: Ask your lender to ensure the additional amount is applied directly to your principal.

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5. Review Your Mortgage Rate and Loan Terms

Your interest rate has a major impact on how much your mortgage costs over time.

Review your current loan terms periodically and compare them with available options.

Depending on your situation, refinancing could potentially reduce your interest rate or change your loan term.

However, refinancing can involve closing costs and other fees, so it’s important to carefully compare the potential savings with the costs involved.

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6. Avoid Taking on New Debt

Paying down your mortgage becomes more difficult when you’re continually adding new debt.

Try to avoid unnecessary large purchases financed with credit while you’re working toward becoming mortgage-free.

Reducing other high-interest debt can also free up money that could eventually be directed toward your mortgage.

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7. Create a Mortgage Payoff Plan

The most important step is having a clear plan.

Determine how much extra you can realistically put toward your mortgage each month and set a specific goal.

You can track:

• Your current mortgage balance
• Extra principal payments
• Interest saved
• Your target payoff date

Seeing your progress can help keep you motivated.