{"id":105788,"date":"2025-09-12T10:48:09","date_gmt":"2025-09-12T17:48:09","guid":{"rendered":"https:\/\/www.redfin.com\/blog\/?p=105788"},"modified":"2025-09-12T10:48:09","modified_gmt":"2025-09-12T17:48:09","slug":"can-you-pay-off-your-mortgage-early","status":"publish","type":"post","link":"https:\/\/www.redfin.com\/blog\/can-you-pay-off-your-mortgage-early\/","title":{"rendered":"Can You Pay Off Your Mortgage Early with Extra Payments?"},"content":{"rendered":"

Buying a home is one of the biggest financial milestones, and for many people, the <\/span>monthly mortgage payment<\/span><\/a> quickly becomes just another line in the budget. If you\u2019ve ever wondered whether paying off your mortgage early is possible, the answer is yes, and it can be a smart way to save on interest and gain peace of mind.<\/span><\/p>\n

In this Redfin article, we\u2019ll break down what early mortgage payoff really means, when it makes the most sense, and strategies you can use, like making extra payments, to pay down your loan faster. Whether you\u2019re building a life in a <\/span>house in Los Angeles, CA<\/span><\/a> or settling into a <\/span>home in Dallas, TX<\/span><\/a>, understanding your options can help you make the best financial decision for your future.<\/span><\/p>\n

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Can you pay off your mortgage early?<\/span><\/h2>\n

Yes, most lenders allow you to pay off your mortgage ahead of schedule by making extra payments, increasing your monthly payment, or paying the loan in full. In the U.S., most mortgages don\u2019t have prepayment penalties, but some do \u2013 so confirm with your lender before moving forward.<\/span><\/p>\n

How to pay off your mortgage early<\/span><\/h2>\n

If you\u2019ve decided early repayment is right for you, here are some practical ways to do it:<\/span><\/p>\n

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  1. Make extra principal payments<\/b>:\u00a0 Add a little extra toward the principal each month or make an additional payment once or twice a year.<\/span><\/li>\n
  2. Round up your payments<\/b>: Instead of paying $1,250, round it up to $1,300. Those small amounts add up over time.<\/span><\/li>\n
  3. Switch to biweekly payments<\/b>: Paying every two weeks instead of monthly results in 26 half-payments, which equals 13 full payments each year instead of 12. This works out to roughly one extra monthly payment each year.<\/span><\/li>\n
  4. Apply windfalls<\/b>: Use <\/span>tax refunds<\/span><\/a>, bonuses, or side hustle income to pay down your mortgage balance.<\/span><\/li>\n
  5. Refinance to a shorter term<\/b>: A 15-year mortgage has higher monthly payments but significantly less interest over the life of the loan.<\/span><\/li>\n<\/ol>\n

    >>Also read: <\/b>How to Lower Your Mortgage Payment<\/b><\/a><\/p>\n

    Example: How much you could save with extra payments\u00a0<\/span><\/h2>\n

    Let\u2019s say you have a $300,000 mortgage at a 6% interest rate on a 30-year loan. Here\u2019s how much faster you could pay it off, and how much interest you\u2019d save, by making extra payments:<\/span><\/p>\n\n\n\n\n\n\n\n\n
    Extra Payment Strategy<\/b><\/td>\nLoan Paid Off In<\/b><\/td>\nInterest Paid<\/b><\/td>\nTotal Interest Savings<\/b><\/td>\n<\/tr>\n
    No extra payments<\/span><\/td>\n30 years<\/span><\/td>\n$347,515<\/span><\/td>\n$0<\/span><\/td>\n<\/tr>\n
    $100 extra per month<\/span><\/td>\n~26 years<\/span><\/td>\n$296,301<\/span><\/td>\n$51,214<\/span><\/td>\n<\/tr>\n
    $250 extra per month<\/span><\/td>\n~22 years<\/span><\/td>\n$248,210<\/span><\/td>\n$99,305<\/span><\/td>\n<\/tr>\n
    $500 extra per month<\/span><\/td>\n~18 years<\/span><\/td>\n$196,275<\/span><\/td>\n$151,240<\/span><\/td>\n<\/tr>\n
    Biweekly payments*<\/span><\/td>\n~25 years<\/span><\/td>\n$287,916<\/span><\/td>\n$59,599<\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

    *Biweekly = 26 half-payments per year, which equals 13 full payments instead of 12.This produces savings similar to making one extra monthly payment each year.<\/span><\/p>\n

    >>Also read: <\/b>How Much Does Interest Rate Affect Monthly Payment?<\/b><\/a><\/p>\n

    When does paying off your mortgage early make sense?<\/span><\/h2>\n

    Paying off your mortgage early is most beneficial if:<\/span><\/p>\n