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.

Becky Sanders ABR, RSPS, CREN The Litchfield Company Pawleys Island, SC (843) 446-2805 SC 58072 Becky Sanders is a South Carolinian through and through. She was born and raised in Greenville, the baby of 6 children. After graduating from the University of South Carolina she married her college sweetheart. Shortly thereafter they moved to coastal New England which is where Becky began her career in the mortgage banking industry. Several years later she and her husband made there way back down South. In 2000, they made one last move to Pawleys Island where they have lived ever since, raising a son who graduated from Appalachian State and a daughter who graduated from Clemson. In 2019, Becky decided to make a career move and become a Realtor with The Litchfield Company. “Having been in the mortgage business for so long, it was a natural transition to move over to real estate sales. Choosing The Litchfield Company was a no brainer. They are THE premier agency in the area!” Becky enjoys the outdoors, travel, golf, live music and spending time with friends and family. As a Pawleys native for over 25 years, she knows the area like the back of her hand. But it’s her core values of dependability, integrity, loyalty, and accountability that make her the agent you want to work with. Call Becky today if you’re looking for someone who is focused on clients and driven by results. Contact Me Visit my Website Send a Referral Subscribe to Newsletter