{"id":28934,"date":"2021-12-30T12:27:27","date_gmt":"2021-12-30T20:27:27","guid":{"rendered":"https:\/\/www.homelight.com\/blog\/?p=28934"},"modified":"2026-04-05T21:35:34","modified_gmt":"2026-04-06T04:35:34","slug":"buyer-how-to-pay-off-mortgage-faster","status":"publish","type":"post","link":"https:\/\/www.homelight.com\/blog\/buyer-how-to-pay-off-mortgage-faster\/","title":{"rendered":"Your Homebuyer\u2019s Guide to How to Pay Off Mortgage Faster"},"content":{"rendered":"

When you signed on the dotted line for your 30-year mortgage<\/a>, it probably felt equal parts daunting and surreal. On one hand, three decades is an awfully long financial commitment \u2014 but on the other, it\u2019s not as though you\u2019re absolutely locked in with no possible way out. You can always sell your home, or refinance using a loan with better terms, or perhaps you\u2019ll stumble into a windfall of cash that will eliminate all your debts with a flourish. (Hey, you never know!)<\/p>\n

Taking on a mortgage is no casual agreement \u2014 which is why the loan qualification<\/a> process is so stringent \u2014 but you\u2019ll nearly always have options. And perhaps one of the most exciting is the prospect of paying off your mortgage early.<\/p>\n

Many homeowners have questions when it comes to how to pay off a mortgage faster, including concerns about whether it\u2019s actually a good idea or not. To help address these quandaries, we\u2019re exploring strategies for paying off your mortgage early, and looking into the pros and cons \u2014 all with lots of research and the help of financial experts.<\/p>\n

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<\/a> Source: (Dino Reichmuth \/ Unsplash)<\/figcaption><\/figure>\n

Why pay off a mortgage early?<\/h2>\n

Paying off your mortgage faster may seem like an obvious advantage \u2014 you\u2019ll eliminate a big monthly payment and save potentially thousands of dollars on interest charges<\/a>.<\/p>\n

The money you\u2019ll save by not having to make a mortgage payment each month will free up cash to use for literally anything else, from home renovation projects<\/a> to far-flung travels, funding a new hobby, or bolstering your retirement account.<\/p>\n

Generally speaking, mortgages get paid off early either because a homeowner prioritizes paying down the mortgage as quickly as possible, or because they sell the home.<\/p>\n

Homeowners who sell their home<\/a> while still holding a mortgage will pay it off with the proceeds of the sale \u2014 even if they end up taking on a new loan with the purchase of another property.<\/p>\n

Early payoff due to sale is actually quite common \u2014 a recent report<\/a> by the National Association of Realtors\u00ae indicates that 87% of buyers finance their purchase<\/a>, and that sellers typically live in their home for 10 years before selling. This means that even if someone has a 15-year mortgage, there\u2019s a good chance they\u2019ll sell the home before the loan fully matures.<\/p>\n

(And yes, some homeowners pay off their mortgage early because they\u2019ve won lottery money, hit it big in Las Vegas, or inherited money from a relative. But for practical purposes, we\u2019ll skip using these examples as strategies!)<\/p>\n

What do financial experts think about early mortgage payoff?<\/h2>\n

Regardless of why<\/i> someone might pay off a mortgage faster than is required by the terms of the loan<\/a>, the questions that most folks have involve the how do I<\/i> and should I even<\/i> factors.<\/p>\n

Experts are, as with seemingly every topic related to personal finance, divided on their stance about early mortgage payoff.<\/p>\n

Staunch believers in carrying no debt, regardless of how \u201cgood\u201d a debt<\/a> it may be considered, advocate for paying off a mortgage as soon as possible, no matter the accompanying sacrifice. But if you tightened your metaphorical belt to save for a down payment<\/a>, you already know how challenging \u2014 and often unsustainable \u2014 those drastic spending cutbacks can be.<\/p>\n

Other financial experts, however, actually caution against paying off a mortgage early.<\/p>\n

\u201cIt\u2019s not always a good idea,\u201d says Alex Williams, a certified financial planner. \u201cAs a homeowner, you can claim the amount you pay in mortgage interest on your taxes<\/a> to lower your taxable income. If you pay off your mortgage early, you lose this benefit.\u201d<\/p>\n

Whether this will make a big difference to your own annual tax situation may be a conversation to have with your accountant or tax advisor, but it\u2019s certainly worth keeping in mind as a possible downside of early payoff.<\/p>\n

Another aspect Williams wants homeowners to be aware of is the fact that your money may be put to better use in other investments.<\/p>\n

\u201cKeep an eye on the stock market \u2014 the average stock market return<\/a> over a decade is about 9%, so you might be better off investing the money instead,\u201d he says.<\/p>\n

With mortgage interest rates at historic lows<\/a>, this advice is nothing to sneeze at, especially if you paused contributions \u2014 or even borrowed money against your retirement savings \u2014 for your down payment when purchasing your home.<\/p>\n

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<\/a> Source: (Jeremy Bezanger \/ Unsplash)<\/figcaption><\/figure>\n

Pros and cons of early mortgage payoff<\/h2>\n

Unless money is no object for you, there\u2019s much to consider<\/a> when deciding whether to prioritize paying off your mortgage early.<\/p>\n

Advantages of early payoff<\/h3>\n