4 Proven Ways to Pay Off Your Mortgage Faster And Save Thousands in Interest

Most homeowners don’t realize how much small tweaks to their mortgage payments can change their financial future. My personal rule of thumb: aim for at least 8% equity in your home as quickly as possible after buying. Why? Because when you go to sell, that 8% often covers commission and closing costs — keeping you from bringing money to the table.

Here are four strategies — three classics and one little-known insider tip — that can help you pay off your mortgage faster, build equity, and save thousands.

1. Make One Extra Payment Per Year

If your payment is $2,400, set aside one extra full payment each year.

• Annual total with the extra payment: $31,200 (13 × $2,400)
• Baseline annual total: $28,800 (12 × $2,400)

On a $300,000 loan at 6%, this alone can shorten your loan by about five years.

2. Add 1/12 to Each Monthly Payment

Divide your monthly payment by 12 and tack it on.

• $2,400 ÷ 12 = $200 extra per month
• New monthly payment = $2,600
• Annual total = $31,200

This method achieves the same as making one annual extra payment — again, about five years saved.

3. Switch to Biweekly Payments

Instead of $2,400 once a month, pay $1,200 every two weeks. Because there are 26 biweekly periods in a year, you’ll make 13 payments instead of 12.

• Annual total = $31,200

This strategy also trims roughly five years off the mortgage.

4. Recasting — The Insider Trick

Recasting means you make a lump sum payment (often $3,000+), and your lender re-amortizes the loan at the same interest rate but with a lower balance.

• Key Benefit: Your monthly payment drops.
• Catch: It usually doesn’t shorten your payoff date unless you keep paying the old, higher amount.
• Why it matters: It improves your loan-to-value ratio, freeing up options for refinancing, pulling a HELOC, or simply easing monthly cash flow.

Why This Matters

Every extra dollar toward your principal reduces your interest, accelerates your equity growth, and gives you more flexibility if you ever need to refinance, pull a HELOC, or sell.

For many of my clients in the Greenville–Spartanburg market, these strategies mean the difference between hoping to build equity and having a clear, predictable path to wealth.

If you’d like me to run these numbers on your mortgage and show you exactly how quickly you could hit that 8% equity benchmark, reach out today. Let’s build your path to smarter decisions, better deals, and confident moves.