Better Homeowners
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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.

Mary Anne Windes CCIM, CRB, CRS, GRI, RRS, e-PRO Real Estate Professionals of Destin, Inc. www.Destin-Real-Estate.com (850) 803-2211 BK583540 Mary Anne Windes, age 64, is a lifelong FWB/Destin resident. She grew up in Fort Walton Beach riding, training, and showing horses while she attended school. She earned an AA degree in Business Administration at Okaloosa-Walton Junior College and obtained her BA in Accounting from the University of West Florida with the help of a tennis scholarship. She has been married for 40 years to Capt. Kelly Windes. They have two grown children, ages 37 and 36, and four grandchildren. Mary Anne's early career in accounting started in auditing and setting up new businesses. She has put those strengths to work for her family setting up and managing 16 separate businesses including 10 various types of commercial boats, three real estate companies, a marina, and a few retail ventures, plus she's helped with several political campaigns. An active community leader, she was a two-time Chairman of the Mid-Bay Bridge Authority appointed for two terms by Governor Jeb Bush, President of the Emerald Coast Association of Realtors, Chairman of the Destin Area Chamber of Commerce, Honorary Commander of the 33rd Fighter Wing to receive the first F35 jets at Eglin AFB, Chairman of the Destin Fishing Rodeo, Chairman of the Miss Destin Pageant for 4 years, and Chairman, leader, or member of various other community boards, committees, and special projects. She has been a weekly usher at her church for over twenty years and co-teaches the Crown Financial Ministry series. Her primary vocation is real estate where she handles both commercial and residential transactions for friends and referrals. She is the broker and owner of Real Estate Professionals of Destin, an independent boutique real estate company located on the Destin Harbor for 30 years and Real Estate Professionals of NW FLA, Inc. She holds various distinguished designations in real estate that signify excellence, education, and experience. She was acknowledged for her achievements four times by receiving the coveted Realtor of the Year award conveyed by the Emerald Coast Association of Realtors for Destin in 1997, overall in 2010, for Destin in 2010, and for Commercial in 2022 as well as the Entrepreneur of the Year Award by the Women's Council of Realtors. She loves spending time with family and friends, a challenge, any type of furry pets, exercising, and Russell Stover's chocolate. Contact Me Visit my Website Send a Referral Subscribe to Newsletter