5 Year mortgage loan

More than 20 million Americans own their homes outright. Some bought their homes with cash, while others whittled away at their mortgages year after year until they were gone.

Maybe you worked with a and got a deal on your home, but, like two-thirds of American homeowners, you had to take out a mortgage to finance the purchase. Since we are all about getting out of debt as quickly as possible, we hope your goal is to make the last mortgage payment sooner rather than later. So check out three easy ways to pay off your home loan early!

An Extra Habit

Each time you pay extra on your mortgage, more of each payment after that is applied to your principal balance. Here are some options for paying extra and examples of how extra payments will affect the average $220, 000, 30-year mortgage with a 4% interest rate:

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• Make an extra house payment each quarter, and you’ll save $65, 000 in interest and pay off your loan 11 years early.

• Divide your payment by 12 and add that amount to each monthly payment or pay half of your payment every two weeks, also known as bi-weekly payments. You’ll make one extra payment each year, saving you $24, 000 and shaving four years off your mortgage.

• Round up your payments so you’re paying at least a few extra dollars a month.

• Increase your payment when you get a raise or bonus.

Always check with your mortgage company before you make additional principal payments. Some companies will only accept extra payments at specific times, or they may charge prepayment penalties. And always make sure the additional money is applied to the principal and not next month’s payment.

Refinance—or Pretend You Did