How to Pay Off a Mortgage Early

Your house is one of the largest investments that you will make in your lifetime. Paying off your mortgage is an exciting and exhilarating event that will make all of your hard work seem worthwhile.

Step 1

Establish a budget for your monthly expenses. To do this make a list of all the bills that you must pay each month like utilities, car payment, credit cards, student loans, food and mortgage. Next to each of these bills write the amount of money that you need to spend on these items and then tally the totals. This is how much money you typically spend each month.

Step 2

Determine how much extra money you have to spend each month after you pay your usual bills. To do this simply take your monthly income and subtract your budgeted expenses.

Step 3

Calculate how much of your extra money you want to spend paying down your mortgage. To do this you may want to take into consideration seasonal expenses or entertainment.

Step 4

Add your pre-determined amount of money to your usual mortgage payment.

Step 5

Get a second job.

Step 6

Use the income from your second job exclusively for paying off your mortgage.

Step 7

Reduce your monthly expenses by not buying items that you don't need to survive. For example cancel cable television, ride your bike to school or work instead of driving, take the bus to work instead of driving, reduce or eliminate your entertainment budget, buy generic foods and use coupons.

Step 8

Use the extra money from your budget reduction to pay down your mortgage.

Step 9

Refinance your mortgage for a fifteen year period instead of the typical 30. The payments will be slightly higher but you will save thousands of dollars in interest and you will pay off your mortgage in half the time.


Even adding fifty to one hundred dollars a month to your mortgage payment can speed up the rate of paying off your mortgage dramatically. Use "found" money to pay down your mortgage. For example bonuses, gifts, lottery winnings, etc. can all be used to pay down your mortgage without impacting your monthly budget.


Before you pay off your mortgage early make sure that doing so is in your best financial interest.