8 ways to pay off your mortgage faster

Use Accelerated Weekly Biweekly Payments

Instead of making monthly payments, consider making half of your monthly mortgage payment every two weeks. This results in 26 half-payments or 13 full payments in a year, effectively making one extra payment annually. When compounded over the life of your mortgage, this extra yearly payment goes a long way to reducing the life of your mortgage.

1. Lump Sum Payments
   Use lump sum payments to your advantage. Apply tax refunds, work bonuses, or other windfalls directly to your mortgage principal. Make sure to check with your lender to ensure there are no penalties for making lump sum payments.

2. Consider Recasting
   Check with your lender to see if they offer mortgage recasting. This involves making a lump-sum payment to reduce the loan balance, and the lender recalculates your monthly payments based on the lower balance.

3. Refinance to a Shorter Term
   If your financial situation allows, consider refinancing your mortgage to a shorter term. Shorter-term mortgages typically have lower interest rates, and you'll pay less interest over the life of the loan.

4. Round Up Payments
   Round up your monthly mortgage payment to the nearest hundred or even the nearest fifty dollars. This incremental approach can help you pay down your mortgage faster without feeling a significant impact on your budget.

5. Increase Your Regular Payments
   If your mortgage agreement allows for prepayments, consider increasing your regular payment amount. Even a small additional amount each payment can have a significant impact over the life of the mortgage.

6. Refinance your Mortgage
   At the time of this article, interest rates are at historical highs. If (and when) interest rates decline, you may be able to reduce the amount you are paying towards interest, therefore, applying more of your payment towards your mortgage principal. You will also have the option of reducing your loan term.

7. Consult with a Financial Advisor
   Consider consulting with a financial advisor to ensure that your mortgage repayment strategy aligns with your overall financial goals. They can provide personalized advice based on your specific situation.