Here are some ways you can pay off your mortgage quickly.
- Pay extra towards your principle each month.
Try and find any extra way to reduce your principle each month. Every little bit counts; paying just an extra $50 a month could reduce your 30-year loan by as much as 2.5 years. Doubling that payment to $100 could reduce your payoff time by about 4.5 years. Make sure when you pay extra that you indicate your applying it to your principle balance.
- Refinance your loan.
Try reducing your payments with a lower interest rate mortgage. This will give you the extra cash flow to pay down your principle each month. In some cases you can do this for NO COST. This will help you start saving right away. You can then use the snowball effect to pay off any other debt or pay down extra principle towards your mortgage.
- Pay down your principle at the beginning of the loan when your interest is higher.
This is one of the most effective ways to pay off your mortgage early. The majority of your monthly payment schedule is front-loaded with interest for the first few years. Prepaying or paying more than required can build equity quickly.
- Shorten your term.
If you can afford a higher monthly payment, then refinance into a shorter term. We have 25-, 20-, 15-, and 10-year terms available. Usually, the rates are lower for the smaller term loans. Checkout our loan calculators, to determine your new payment.
- Make Bi-weekly payments.
Because there are 52 weeks out of the year and 12 months, If you pay half your regular mortgage payment every other week, you’ll have made 26 half-payments, or the equivalent of 13 full-monthly payments, at year’s end. The extra contribution can eliminate approximately six years from a 30-year mortgage. Check with the bank to see if they will setup a free bi-weekly payment plan. However, you can do this yourself. Paying to use an outside service is not recommended. You can accomplish the same objective by paying one extra payment per year towards your mortgage.
Find the additional payment required to pay off your loan early.
Early Payoff Calculator
Choose a program that might help you reduce your rate.
- Looking for a more traditional option? Choose from the most competitive rates available.
- Maximize your monthly income by changing the term of your loan.
- Potentially save thousands in interest over the first 5 to 7 years by selecting an ARM over a traditional fixed mortgage
- Refinance into the security and low rates of a fixed-rate government loan.
- Qualify with less stringent qualification and credit requirements.
- Access to all fixed-rate terms.
- Avoid the extensive qualification process.
- Available as a 30-year or 15-year fixed loan as well as a 5-year adjustable rate mortgage (ARM).
- No appraisal necessary.
- Marginal credit requirements.
- Lower your rate and payment if you are a spouse, military member, or qualified veteran.
- No monthly mortgage insurance (PMI).
- Fixed-rate and adjustable-rate program options, including jumbo loans.
Calculate your monthly payment and see how the principal is paid over time.
Payment Amortization Calculator
Why you should choose Starwest Mortgage for your home purchase:
- As a broker, Starwest gives you access to the most competitive rates, fees, and programs the wholesale lending industry has to offer. Why use a broker?
- No Closing Cost program
- Get loan status updates anytime, anywhere. Take advantage of our online tools.