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Housing costs count toward a major chunk of your budget. For some families, payments pile up until chunks become unbearable and impossible to pay. But there are ways to work on your mortgage, piece-by-piece and chunk-by-chunk. Essentially, the more you spend the more manageable your mortgage on a monthly basis! Paying off your mortgage as fast as you can might not sound like a priority, but by making it one you can potentially save thousands over the life of your mortgage. Maybe even more if you’re only paying the minimum on a costly home! Let’s go over some methods that will help you start slowly paying off your mortgage, saving yourself a long-term hassle and lightening the load on your financial burden.

Make Smaller, Extra Payments

Minimum payments might be a feat for some, but try to consider your options! Jot out both yearly and monthly budgets to make wiggle room for any extra dollars that could be paid into anything accruing interest in your life. Use a mortgage calculator to estimate your average mortgage payments. Don’t overreach for the maximum payment, look for additional funds you can set aside in case of a rainy day. Pennies here and there may not seem much, but they’ll save thousands on the life of your mortgage, having little to no impact on your overall budgets. Putting saved money towards a principal interest will help you save not just on the overall amount, but on extra amounts that go towards rate. Lenders consider these things when putting together lower rates and accelerated payment schedules. It also helps with negotiations towards refinancing!


Some like to see more concrete numbers when it comes to your mortgage payment. You can talk to your lender about refinancing your terms, writing out a new plan based on updated rates, monthly payments, and longer or shorter terms. One great way to repay your mortgage early is to request your terms to be shortened, either from the traditional 30-year rate to a 20, 15, or even 10-year rate! A good way to severely lower how much your paying is to play with these rates as you go over time. What happens to your mortgage if you borrow on a 4.0% rate. For example, if you borrow $60,000 on a $100,000 house you could be spending roughly $286 a month on a 30-year mortgage. Overall, you’ll be paying a total of $102,960 over the course of a 30-year term. On a 15-year mortgage, your payments will be $444, spending $79,886 through those 15 years! While $444 isn’t quite double $286, you’ll be spending roughly 2/3 the total amount in half the time! So consider using the full amount of your budget to sign on a 15 or 10-year mortgage. Signing on to a 15-year mortgage may cause you to spend more monthly, but paying it off in half the time is an easy possibility that could ultimately save you tens of thousands in long-term payments. You could even receive an additional lower rate, so apply online today to see how refinancing works!

Additional Payments

One negative to refinancing your mortgage to a shorter term is the risk you inherit. What if something in your life happens where you can’t afford doubling payments? Some lenders allow you to halve the risk and qualify for additional payments on your interest. On top of your monthly, mandatory payments to your interest could help to chip away at how much you’re going to spend! Budget to cover additional payments as you’re paid, perhaps every other week as you’re paid, or split larger payments over the course of a year. Splitting payments across longer periods are another great way to gain the benefits of a 15-year mortgage, without locking in the commitment of new rates a long-term change can bring. There are many other ways to shave off points and dollars during the extent of your mortgage. Who knows? Following these steps could even completely buy off your house! Do you have questions? Send them to our professional specialists online! If you want an answer a little more quickly, contact us on Twitter or Facebook today!