Easy Ways to Pay Off Your Mortgage Early

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Today, I’ll share four simple ways to pay off your mortgage early.

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[MattsMkia]

Prices are too high. With rates not subsidised in ’24 and mortgage still high, currently seeking alternatives to maximise savings without an RV move or taking a loan. I’m seriously contemplating the latter.

[billtsompanidis]

I paid my 30 year $455K mortgage in 7 years in December 2023! Scrimped saved and made significant sacrifices for those years. No new cars little entertainment rarely went to restaurants. All bonuses, tax returns, gifts were turned over to the bank. Wife wanted to hang me. Got through it and we now own our 950k house. No mortgage, no auto loans and no card debt because we didn’t spend money. We are financially free to do whatever the heck we want now. Btw we kept up with our 401k investments the whole time. It can be done! My rich friends still have many payments and are envious. Same people who poked fun because I drove a 10 year old car. lol.

[tz]

We paid off our mortgage in January. I had a 15 year at 2.25% and so many people told me not to do it since the money was so cheap. It was a tough decision, but now that it's done, I don't have to throw additional payments to the principal every month. Now, the money we make is ours and let me tell you, we have been splurging the last couple months for sure. No regrets here. Very thankful for sure!

[mithicash]

The only thing i would say is that you don't need a 15yr mortgage to pay it off in 15 years. In fact, i would recommend people take a 30yr loan BUT pay it at a 15yr pace. This is a long period of time and you never know when hard times will come. Today, you can pay off mortgages penalty free so if you fo with 30yr loans it gives you flexibility. If you or your partner lose a job, you have the option to pay significantly lower payment. If not, you keep paying it off at a 15yr rate and get it done early.

[Cardinal]

We’re paying off our home this year after 15 yrs and at 40 yrs old. No other debt, it feels good.

[Matthew-wzng]

Round your payment up to the next hundred can knock a few years off the loan. I did that for 14 years and it knocked 5 years off.

[billwilliams]

One trick is to print off the 30-year amortization schedule showing each month’s principle and interest. Then whenever possible, pay extra money into the loan. After doing this a few times, then re-print the amortization schedule to see how much interest you have saved. That will encourage you keep sending in even more extra money.

[Kyriecat]

Remember extra payment to principal.... Some people don't understand that. When you make your extra payment, apply it to the principal only!

[alindalt]

Took us 18 years on one income, but we did it!! Just last Thanksgiving, we were officially debt free... Meaning the mortgage!

[TheodoreMateoh]

Its worse here, our economy is like a flailing fish, fighting for its life. The normal state of the U.S. economy is actually very bad. Because of this it goes into convulsive spasms fighting to grow any way it can out of desperation. Tricks, gimmicks, rule changes try to stimulate the economy and prevent it from falling but they only bring temporary relief to people since, when you factor in inflation we are declining.

[todd]

We had a 5 year plan to pay the rest of our mortgage off starting Jan 2021. We ended up paying it off in 2.5 years. Once you start seeing the balance come down fast, it's addicting. Once, I even put my $100 Christmas money from my parents on it when the balance was around 400K. We tried putting at least 7 payments per month on it, regardless of the size.

[Riggsnic_co]

Asking a real estate agent whether you should buy a home right now is like to asking an alcoholic whether they think you should have a drink lol. Homes in my neighborhood that cost around $450k in sales in 2019 are now going for $800 to $950k. Every seller in my neighborhood is currently making a $350k profit. Simply unreal. In all honesty, deflation is what we require. The only other option is for many people to go bankrupt, which would also be bad for the economy. That is the only way to return to normal.

[jgjg]

If you're already in a low rate mortgage, don't refinance. Just look up a 15 year mortgage online and see what the monthly payment would be and pay that extra amount toward principal on your current mortgage. Just pretend you're in a 15 year by paying the amount a 15 year would be. The years will just fall off your 30 year fixed.

[ScottJ_Moses]

Hear, hear. I bought in 2022. I’ve lived here around 18 months, but I’m” 6.5yrs” on my amortization chart.

[tressalewis]

Thank you for all the great information, Rachel! Because of listening to all the great videos coming out on Ramsey, I have been encouraged/my husband and I have been encouraged to pay off our mortgage early. We have about a week and a half to finish.🎉🎉🎉🎉🎉🎉🎉🎉

[ManMindsetMoney]

It's risky to force yourself into a 15 year mortgage. Keep your 30 year and just make additional principal payments

[Maddie-lvsg]

I would like to mention that I am 68 and I have a paid-off mortgage. Yes, it reduces stress but it makes me feel so secure that if myself or my husband gets sick and can not work we can afford to survive with a roof over our heads.

[bradleygraves]

I finally cleaned up my act and am maxing out retirement IRA by this June for both my wife and I. After that, 4x principle payments each month through the end of the year. Can't wait to see the balance drop.

[jackieroberts]

Old lady here (70). My hubby surprised me about 5 years ago by paying off the house with some investment money. I was shocked but he realized how important it was to me. Now even he says he feels better! And, that monthly payment is gone. The grass really does feel different.

[howellomaha]

I would not refinance a loan from 30 to 15 year if you are good about paying extra towards the loan. People always make it sound like it is free to refinance, but nothing is free and those costs are $$.
Sure the bank will just 'wrap those closing costs into the loan' but that will cost even more.