The Simple Trick to Pay Off Your Mortgage Years Early

Let’s take a closer look at one of the simplest ways to save money on your mortgage over time: making one extra payment each year.

For example, let's consider a $300k, 30-year mortgage at 6%. If you applied a $300k tax refund toward your loan each year, you’d pay the mortgage off almost 8 years sooner — and save more than a $100k in interest.

Now let’s say instead you paid a little extra each month. Putting an additional $200 toward the principal every month on that same loan would pay it off almost 7 years early and save over $90k in interest.

Another option some people consider is bi-weekly payments — paying half your normal payment every two weeks. That ends up being one extra payment each year and can shorten the loan by about six and a half years. Just keep in mind, not all loan servicers allow bi-weekly payments.

The big takeaway is that even small, consistent extra payments can make a huge difference over time.

And remember — it’s always okay to ask. We’re here to help you get home.