4 Smart Ways to Pay Off Your Mortgage Faster

Tired of watching so much of your hard-earned money go toward interest instead of your home? You don’t need a massive income boost or a complicated financial plan to get ahead on your mortgage. With a few smart tweaks to your payment strategy, you can save thousands of dollars in interest and shave years off your loan starting this year.

To help you get ahead on your mortgage and put your money to work in 2025, here are four practical tips you can start using right now:

1. Make one extra payment per year. Even a small increase can make a big difference. Try adding 1/12 of your monthly payment to each payment. By the end of the year, you’ll have made one full extra payment without feeling the pinch. That extra amount goes straight to your principal, which can cut a 30-year mortgage by four or five years and save you thousands in interest.

2. Switch to biweekly payments. Instead of paying once a month, make half your payment every two weeks. Since there are 52 weeks in a year, you’ll end up making 26 half payments, which equals 13 full payments annually. That extra payment goes straight toward your principal, helping you cut down your loan faster. Many lenders support biweekly drafts at no extra cost, so check with yours.

3. Put lump sums toward your principal. Got a tax refund, work bonus, or income from a side hustle? Put that extra cash to work by applying it directly toward your mortgage principal, not future interest. Even one or two lump-sum payments a year can significantly reduce your long-term interest costs and bring you closer to owning your home outright.

4. Consider refinancing if the math works. If you’re comfortable with a slightly higher payment, refinancing from a 30-year mortgage to a 15 or 20-year loan can be a game-changer. In 2025, shifting rates mean the right refinance could save you tens of thousands in interest. Just make sure to factor in any closing costs or rate changes before deciding, as it only works when the math is in your favor.

Paying off your mortgage faster doesn’t have to mean sacrificing your lifestyle. By making an extra payment, switching to biweekly payments, using windfalls strategically, and considering a shorter-term refinance, you can take control of your loan and reach financial freedom sooner.

If you’re looking to pay down your mortgage faster, build equity, or just want to understand how different strategies could work for your home, call me at (310) 930-5495 or send an email to bjones@kingdomrealtyteam.com. I’m excited to help you take control of your mortgage and reach your financial goals.