How to Pay Off Your Mortgage Early
Owning your home free and clear is a powerful feeling — and you can get there years sooner. Here's how, plus when it's smarter not to.
Ways to pay it off faster
- Add extra to principal each month. Even $100–$200 extra goes straight at the balance and can cut years off the loan. See the impact on the mortgage calculator.
- Make biweekly payments. Paying half your payment every two weeks results in one extra full payment per year — almost painlessly.
- Throw windfalls at it. Tax refunds, bonuses and raises can knock down the balance fast.
- Refinance to a shorter term. A 15-year loan has a higher payment but far less total interest. Compare on the mortgage calculator.
- Recast after a big lump-sum payment to lower your required monthly payment while keeping the shorter payoff.
Should you pay it off early — or invest instead?
It comes down to your mortgage rate versus what you could earn investing. If your rate is low (say 3–4%), investing the extra money at an expected ~7% may build more wealth over time — see the compound interest calculator. If your rate is high, or you simply value the security of being debt-free, paying it down is a guaranteed return and real peace of mind. There's no wrong answer — it's math and emotion. (More on this trade-off in pay off debt or invest?)
Before you overpay, check these
- Get the full 401(k) match first — that beats any mortgage payoff.
- Have a solid emergency fund — don't pour every dollar into the house and leave yourself cash-poor.
- Clear any high-interest debt first.
- Confirm there's no prepayment penalty on your loan.
Run your mortgage numbers
Mortgage Calculator
See how extra payments or a shorter term change your payoff.
Open calculator →Compare refinance rates
A lower rate or shorter term could accelerate your payoff.
Compare lenders →Frequently asked questions
Is it smart to pay off my mortgage early?
It depends on your rate. If it's low and you'd otherwise invest at a higher expected return, investing may build more wealth. A high rate, or the peace of mind of being debt-free, favors paying it down.
What's the easiest way to pay it off faster?
Add a little extra to principal each month, or make biweekly payments — that quietly adds up to one extra full payment a year.
Should I pay off the mortgage before investing for retirement?
Get your full 401(k) match and a solid emergency fund first. Beyond that, it's a personal trade-off between guaranteed savings and potential market growth.
