7 Proven Ways to Pay Off Your Mortgage Faster in 2026

1. Make One Extra Payment Per Year

The simplest strategy: make 13 monthly payments instead of 12 each year. You can do this by dividing your monthly payment by 12 and adding that amount to each payment.

Example: On a $350,000 mortgage at 6.5% for 30 years, your monthly payment is $2,212. Add $184/month ($2,212 ÷ 12), and you'll:

• Pay off your mortgage 4 years and 6 months early
• Save $76,000+ in interest
• Build equity 15% faster

Most lenders let you set up automatic extra payments — call yours and ask about "principal-only" additional payments.

2. Round Up Your Payments

If your payment is $2,212, round up to $2,300 or even $2,500. The extra goes straight to principal.

Impact of rounding to $2,500 ($288 extra/month):

• Mortgage paid off in 23 years instead of 30
• Total interest saved: $115,000+

This works because early in your mortgage, most of your payment goes to interest. Extra principal payments flip that ratio faster, creating a compounding effect.

3. Refinance to a Shorter Term

Switching from a 30-year to a 15-year mortgage dramatically reduces total interest — though your monthly payment will increase.

Comparison on $300,000 at current rates:

Savings: $233,713. The catch? Your payment jumps $598/month. Use our Refinance Calculator to see if the math works for your situation.

4. Apply Windfalls to Your Mortgage

Tax refunds, bonuses, inheritance, or side hustle income — putting lump sums toward your mortgage has an outsized impact.

Example: A single $5,000 extra payment in year 3 of a $350,000 mortgage saves you $14,200 in interest and cuts 5 months off your loan. Why? Because that $5,000 never accrues 27 years of compound interest.

The earlier you make lump sum payments, the more you save. A $5,000 payment in year 1 saves more than the same payment in year 15.

5. Switch to Biweekly Payments

Instead of 12 monthly payments, make 26 half-payments (every two weeks). Since there are 52 weeks in a year, you end up making the equivalent of 13 monthly payments.

Result: This alone can cut 4-5 years off a 30-year mortgage. Many banks offer biweekly payment plans for free — but watch out for third-party services that charge fees for this simple change.

6. Recast Your Mortgage After a Lump Sum

Mortgage recasting is different from refinancing. After making a large principal payment ($5,000+), you ask your lender to re-amortize your loan. This lowers your monthly payment while keeping your interest rate and term the same.

When to recast vs. refinance:

• Recast — You want lower payments, your rate is already good, costs $200-500
• Refinance — You want a lower rate or shorter term, costs $3,000-6,000

Not all lenders offer recasting, and it's typically not available for FHA or VA loans.

7. Eliminate PMI as Soon as Possible

If you put less than 20% down, you're paying Private Mortgage Insurance (PMI) — typically 0.5-1.5% of your loan annually. On a $300,000 loan, that's $125-$375/month that builds zero equity.

To remove PMI:

• Request removal when you reach 20% equity (it's your legal right under the Homeowners Protection Act)
• Get a new appraisal if your home's value has increased significantly
• Automatic cancellation happens at 22% equity

Once PMI is removed, redirect that money to extra principal payments for a double win.

Which Strategy Saves the Most?

Here's a side-by-side comparison on a $350,000 loan at 6.5% for 30 years:

The best approach? Combine strategies. Biweekly payments + occasional lump sums + eliminating PMI can cut a 30-year mortgage to under 20 years.