Tips to Pay Off Your Mortgage Sooner


Whatever stage of homeownership you’re at, you have probably allowed yourself to dream the possibility of paying it off sooner. The benefits are clear to see. Imagine not having to pay a monthly sum for your living arrangements. What could you do with the money you save? 

It’s useful to think long term when considering mortgages. You might not benefit straight away from a payoff strategy, but when it comes to retirement and enjoying life free from the constraints of work, you will have the security of homeownership to go with it as well as a whole lot of free cash to spend traveling the world. 

An Early Payoff Strategy 

When you set up a mortgage arrangement, you have three main options. You can choose from a fixed rate, a variable rate, or a split rate. Each has their advantages and disadvantages. A fixed-rate is good if you want security but doesn’t offer anything in terms of flexibility. Variable and split rates, on the other hand, allow you to make extra payments. 

That’s not all. Variable and split rates take advantage of fluctuating interest rates, so when the interest rate is low, you make a saving. This saving can then be reinvested into the mortgage to bring it down further. While this only works when you make savings on the interest rate, it is a very effective mortgage payoff strategy. 

Choosing the Best Rate 

The type of rate you choose will largely depend on your personality. If you like a lot of security and want consistency for financial planning, a fixed rate is a good option. You will know exactly how much you have to pay and for how long. The rate is also secure and won’t be affected by a fall in the interest rate. The drawback is they also don’t allow you to make extra payments. 

Variable and split rates are different. They fluctuate with the interest rates and allow you to contribute extra to bring down the principal sum. These are the rates you want if you’re interested in paying off the mortgage early and making big savings along the way. 

Save on Principal Interest 

The way a mortgage is calculated using a MortgageCalculator.Org; you always have interest on the principal sum. If your loan amount is for 195,000, for instance, that’s including a 5,000 deposit, and your interest rate over a fixed term is 3.8%, that means you would pay 207,000 for your home. But on a variable or split rate, the interest can be reduced or eliminated by paying in extra sums of money, using the mortgage strategy above of the tips below. 

More Payoff tips 

The mortgage payoff strategy is an excellent way to pay down your mortgage, but it isn’t the only way. Set yourself up on a variable or split rate mortgage and round up your monthly payments so that you pay it off sooner without feeling like it’s costing extra. For instance, if your monthly payment is 300, why not make it 350 or 400. The higher amount will start to feel normal. 

About Author

LaDonna Dennis

LaDonna Dennis is the founder and creator of Mom Blog Society. She wears many hats. She is a Homemaker*Blogger*Crafter*Reader*Pinner*Friend*Animal Lover* Former writer of Frost Illustrated and, Cancer...SURVIVOR! LaDonna is happily married to the love of her life, the mother of 3 grown children and "Grams" to 3 grandchildren. She adores animals and has four furbabies: Makia ( a German Shepherd, whose mission in life is to be her attached to her hip) and Hachie, (an OCD Alaskan Malamute, and Akia (An Alaskan Malamute) who is just sweet as can be. And Sassy, a four-month-old German Shepherd who has quickly stolen her heart and become the most precious fur baby of all times. Aside from the humans in her life, LaDonna's fur babies are her world.

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3 years ago

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