Better Homeowners
Helping homeowners when they buy, sell and all the years in between.

Tips to Pay Down Your Mortgage Faster - 8/27/2025

One of the biggest benefits of homeownership is the ability to build equity—the portion of your home you truly own. Equity grows naturally over time in two ways: first, as you pay down your mortgage through regular payments (amortization), and second, as your home increases in value due to appreciation.

But did you know there are smart ways to accelerate that growth? By paying down your mortgage faster, you can significantly boost your equity and financial freedom, often shaving years off your loan and saving thousands in interest. Here are several strategies to help you do just that:

  1. Apply Your Tax Refund to Principal - Instead of spending your refund, apply it as a lump-sum payment to your mortgage principal. Even one annual extra payment can make a noticeable difference.
  2. Make One Extra Payment Per Year - If you can budget for 13 payments instead of 12 each year, that extra payment goes entirely toward principal and helps you pay off the loan faster.
  3. Switch to Biweekly Payments - By making half a payment every two weeks instead of one full payment monthly, you'll make 13 full payments per year without much strain.
  4. Use Annual Bonuses or Commissions - Apply work bonuses or commissions directly to your mortgage. These windfalls can give your principal balance a serious reduction.
  5. Round Up Monthly Payments - Round up your payment to the nearest $50 or $100. Small increases add up over time and reduce the overall interest paid.
  6. Apply Cash Gifts or Inheritance - Use any financial gift, inheritance, or unexpected income to knock down your mortgage balance and boost equity.
  7. Refinance to a Shorter-Term Loan - If you refinance into a 15-year loan and continue paying your current amount (if higher), you'll speed up repayment and build equity faster.
  8. Cut Non-Essential Spending and Reallocate Savings - Track your discretionary spending and redirect small monthly savings toward your mortgage principal.
  9. Use Rental or Side Hustle Income - Apply any extra income from side gigs or rental properties directly to your mortgage to build wealth with minimal lifestyle impact.
  10. Automate Extra Principal Payments - Set up a recurring monthly transfer to make consistent additional payments without needing to think about it each time.

Your home is more than just a place to live, it's a powerful investment. By taking proactive steps to grow your equity faster, you open the door to more options later in life, whether it's refinancing, accessing funds through a home equity loan, downsizing, or enjoying a debt-free retirement. A little extra effort now can pay off in a big way down the road.

Use our Equity Accelerator  to make projections and build your plan to retire your mortgage.

Amanda Robins C2EX, AHWD, CPS Keebaugh and Company Longview, TX (903) 445-6940 647221 I am proud to be a part of a select group of real estate professionals at Keebaugh and Company, where I can serve all of your real estate needs. As a Broker Associate, a member of the National Association of Realtors and Texas Realtors, I believe in and uphold a strict Code of Ethics. As a tech savvy agent who is ready to provide you with the advantage you deserve, your satisfaction is my priority. Buying or selling real estate is the biggest transaction most people will undertake in their life, and it should not be taken lightly. If you are looking for someone who can offer personalized care with integrity to provide results you can count on, it would be my pleasure to assist you. My goal is to remain committed to providing excellent and comprehensive service. Because buying or selling a home is a major financial commitment and lifestyle decision, you should select a real estate sales agent that has a proven reputation for excellence. I am a consistent multi-million-dollar top-producing agent with the knowledge and expertise that hundreds of training hours afford. Guiding clients toward a successful sale requires attention to detail, communication, consistent follow through and efficiency. Personal: I am married to Larry, we have 2 daughters, and our home cheers on the Spring Hill Panthers. I am a transplant from the DFW metroplex but have made East Texas my home since 2005. Community Involvement: My job would be so difficult without the trust and confidence of members of my community. Therefore, I believe in reciprocating that support by giving back to our local community. Our whole family serves in various programs at our church. I am a member of the Spring Hill ISD PTA, serve as a room mom and volunteer at the Intermediate campus. I am a Photography Assistant for Now I Lay Me Down To Sleep, which provides remembrance photography to parents suffering the loss of a baby. I also serve on the Longview Area Association of Realtor’s Board of Directors, currently serving as Vice-Chair; I chair the association’s MLS Committee and sit on the Texas Realtors’ Professional Standards Committee. Contact Me Visit my Website Send a Referral Subscribe to Newsletter