If you have a 30-year mortgage, it may feel as though you’ll always be in debt. However, there are effective ways to slash the time it takes to pay off a house. Even better, many of these methods don’t require spending a lot of extra money.
Still, paying off a mortgage must be balanced with other financial needs. “I wouldn’t want to recommend someone pay off their house and not have an emergency fund,” says Dave Totah, a certified financial planner with Exencial Wealth Advisors in Frisco, Texas.
With that in mind, if you already have emergency savings and are putting money aside for retirement, use one of these seven tactics to speed up your mortgage repayment.
1. Make biweekly payments. Rather than make a monthly mortgage payment, split the amount in half and send it biweekly, or every two weeks.
“You can get that mortgage paid off pretty quickly if you do that,” says Jonathan Scott, professor of finance at Temple University’s Fox School of Business. That’s because, by the end of the year, you’ll have made the equivalent of 13 monthly payments. This strategy can shave four to six years off of a typical 30-year loan. On a 15-year mortgage, biweekly payments may cut one to three years from the repayment time, depending on the loan amount and interest rate.