Tips on how to pay mortgage off faster

Rental Property Investor · Newark, NJ · Member since 2023 · 57 posts · 23 votes

Hello to all, hope all is well. I have a mortgage and I am looking at my balance and doing the math the lenders are winning with the interest. How can I pay mortgage so it will be in my favor and see a drastic decrease in my mortgage instead of paying tons in interest. Thanks

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Nicholas L.Pro Member

Flipper/Rehabber · Pittsburgh · Member since 2018 · 6k+ posts · 5k+ votes

11mo

@Trevor Neale

it's a valid question but i don't think it's how most of us think about this.

yes, over the long term the bank gets a ton of interest. on the other hand, a 30-year fixed mortgage gets you 1. a fixed payment and 2. the ability to free your cash up for other things.

if paying off debt is a priority that's great - only you can decide what you're comfortable with. the flipside is, anything extra you put against the mortgage is cash you're not investing elsewhere, whether that's real estate or index funds or bonds or groceries.

hope this helps

happy to continue the dialogue

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Ricardo R.Pro Member
Property Manager · Michigan Ctr, MI · Member since 2016 · 663 posts · 581 votes
11mo
Hey Trevor — totally get where you’re coming from. It’s frustrating when you realize how much of your payment is just feeding the bank’s interest for years.

If you want to see that balance drop faster, here’s what actually moves the needle:
- Go biweekly instead of monthly. You’ll sneak in one extra full payment a year without really feeling it. Over time, that can shave years off your mortgage.
- Toss extra money at the principal whenever you can. Even $100–$200 more a month adds up fast. Make sure you tell the lender it’s for principal only.
- If your rate’s high, look at refinancing into a shorter term. The payments go up, but you’ll wipe out a ton of interest long-term.
- Or, if your rate’s good, ask about a recast. You make a lump-sum payment, and the lender lowers your monthly amount based on the new balance. It’s usually cheap to do.
- Keep a calculator handy. When you actually see how much time and money you knock off by paying a bit extra, it gets pretty motivating.
You don’t need to do anything crazy — just consistent small hits to the principal. If you want, share your balance, rate, and term, and I can show roughly how much faster you could pay it off with a few small changes. Trevor, I really hope this helps you a bit and speeds up your pay down, I sent you a DM on BP... it's one of the reasons I do this, I hope you can assist. Thank you in advance.
[email protected]810-844-1104
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Nicholas L.Pro Member
Flipper/Rehabber · Pittsburgh · Member since 2018 · 6k+ posts · 5k+ votes
11mo
@Trevor Neale
it's a valid question but i don't think it's how most of us think about this.
yes, over the long term the bank gets a ton of interest. on the other hand, a 30-year fixed mortgage gets you 1. a fixed payment and 2. the ability to free your cash up for other things.
if paying off debt is a priority that's great - only you can decide what you're comfortable with. the flipside is, anything extra you put against the mortgage is cash you're not investing elsewhere, whether that's real estate or index funds or bonds or groceries.
hope this helps
happy to continue the dialogue
8 Reply
- Dan H.Pro Member
  Investor · Poway, CA · Member since 2015 · 7k+ posts · 8k+ votes
  11mo
  Quote from @Nicholas L.:
  
  @Trevor Neale
  it's a valid question but i don't think it's how most of us think about this.
  yes, over the long term the bank gets a ton of interest. on the other hand, a 30-year fixed mortgage gets you 1. a fixed payment and 2. the ability to free your cash up for other things.
  if paying off debt is a priority that's great - only you can decide what you're comfortable with. the flipside is, anything extra you put against the mortgage is cash you're not investing elsewhere, whether that's real estate or index funds or bonds or groceries.
  hope this helps
  happy to continue the dialogue
  
  I will add a little to Nicholas’ good answer.
  Leverage is what historically has made real estate (RE) a good/great investment. Unleveraged real estate historically has not produced returns that exceed the S&P. In addition, RE is not as passive as the S&P. RE Investing, to be worth the effort, should produce a return far in excess of the S&P and other passive options.
  By paying down the loan, you are reducing your leverage.
  A property with 0% LTV appreciates 10%, the return from appreciation is 10%.
  A property with 80% LTV appreciates 10%, the return from appreciation is 50%.
  Prior to my rates being far lower than the rates I can get today, I spent a certain amount of time and effort to maintain high leverage on my various RE investments.
  The reality is conventional home loans is some of the cheapest money anywhere. Any competent investor should be able to achieve long term returns higher than the conventional home rate.
  Good luck
  4 Reply
Theresa HarrisPro Member
Member since 2019 · 15k+ posts · 11k+ votes
11mo
I find doing the longer term mortgages and then increasing payments works well. Ricardo already covered most of the things you can do.
I know paying interest can be annoying, but I'd also suggest you look at what your rates are and what you'd get if you put that money elsewhere. Eg if you have 3% on your mortgage, but can get 5% in a savings account-your money will have a bigger impact saving it. How debt adverse you are, also plays a role. So if you saved it, once you got to a set number, use some of it to pay down the mortgage.
2 Reply
Trevor Neale
OP
Rental Property Investor · Newark, NJ · Member since 2023 · 57 posts · 23 votes
11mo
@Nicholas L. Totally understand and thanks a lot . Any extra cash flow I try to put extra. Thanks
0 Reply
Trevor Neale
OP
Rental Property Investor · Newark, NJ · Member since 2023 · 57 posts · 23 votes
11mo
@Theresa Harris ahhhhhhh, got it . That's great ideas
0 Reply
Marcus Auerbach
Investor · Milwaukee - Mequon, WI · Member since 2010 · 5k+ posts · 7k+ votes
11mo
The math does not support paying off a mortgage earley as @Theresa Harris explained.

If you grandfather had bought a house in 1960 brand new for $15,000 would you have wanted him to pay that off faster or to take the extra money and buy some CocaCola shares for you?
1 Reply
Elealeh Fulmaran
Specialist · Member since 2025 · 483 posts · 270 votes
11mo
You win the interest game by shortening the loan’s life and lowering what’s charged, not by magic. Do three things: automate one extra principal payment each month or switch to biweekly so you make roughly one extra payment a year; throw all windfalls and any annual escrow or tax refunds as principal‑only curtailments; and shop a refinance only if the rate drop and costs lower your break‑even in a timeframe you’ll keep the loan. Keep 3–6 months of reserves first so you don’t reverse course on a bad month. Quick move: set a fixed extra principal amount you can sustain starting this payment.
2 Reply
- Trevor Neale
  OP
  Rental Property Investor · Newark, NJ · Member since 2023 · 57 posts · 23 votes
  11mo
  Quote from @Elealeh Fulmaran:
  
  You win the interest game by shortening the loan’s life and lowering what’s charged, not by magic. Do three things: automate one extra principal payment each month or switch to biweekly so you make roughly one extra payment a year; throw all windfalls and any annual escrow or tax refunds as principal‑only curtailments; and shop a refinance only if the rate drop and costs lower your break‑even in a timeframe you’ll keep the loan. Keep 3–6 months of reserves first so you don’t reverse course on a bad month. Quick move: set a fixed extra principal amount you can sustain starting this payment.
  Thx so much
  0 Reply
Jules Aton
MD/DC · Member since 2024 · 1k+ posts · 1k+ votes
11mo
What is the interest rate? There are some instances where it makes sense to invest in other avenues if the you can anticipate higher returns. For me 5% or less is generally when I would not pay off early.
1 Reply
- Trevor Neale
  OP
  Rental Property Investor · Newark, NJ · Member since 2023 · 57 posts · 23 votes
  11mo
  Quote from @Jules Aton:
  
  What is the interest rate? There are some instances where it makes sense to invest in other avenues if the you can anticipate higher returns. For me 5% or less is generally when I would not pay off early.
  3.2%
  0 Reply
- Jules Aton
  MD/DC · Member since 2024 · 1k+ posts · 1k+ votes
  11mo
  Quote from @Trevor Neale:
  
  Quote from @Jules Aton:
  
  What is the interest rate? There are some instances where it makes sense to invest in other avenues if the you can anticipate higher returns. For me 5% or less is generally when I would not pay off early.
  3.2%
  
  I would not pay extra toward that mortgage.
  4 Reply
- Dan H.Pro Member
  Investor · Poway, CA · Member since 2015 · 7k+ posts · 8k+ votes
  11mo
  Quote from @Trevor Neale:
  
  Quote from @Jules Aton:
  
  What is the interest rate? There are some instances where it makes sense to invest in other avenues if the you can anticipate higher returns. For me 5% or less is generally when I would not pay off early.
  3.2%
  
  Do not pay that off early.
  My preferred money market is still much higher than that rate, S&P. FAANG. my return on RE investments is far over 25%/year.
  If you cannot achieve over 3.2% investing, I will give you 3.5% on any money you want to pay off early so that you can make 0.3% more than what you are getting charged. I would be happy to provide you documentation that I am zero risk (high credit score, high net worth, never late on any payment proved by my credit report).
  I cannot state strong enough not to pay that loan down early.
  Good luck
  3 Reply
Charlene Livers
Virginia Beach, VA 23452 · Member since 2024 · 88 posts · 14 votes
11mo
Theresa summed it up pretty well.
1 Reply
Henry Lazerow
Real Estate Agent · Chicago, IL · Member since 2017 · 2k+ posts · 2k+ votes
11mo
Leverage is what makes real estate investing amazing. I would never pay off a mortgage early and actually cash out refi as often as I can.
2 Reply
Mike Dymski
Investor · Greenville, SC · Member since 2016 · 5k+ posts · 13k+ votes
11mo
With a rate of just 3.2% (and even lower after taxes), you’re coming out ahead while the lenders are taking the loss. Inflation has been running well above your cost of debt, which means the lender is essentially paying you to borrow their money. You’ll keep repaying the loan with increasingly inflated dollars, while your debt balance stays fixed in nominal terms.
2 Reply
G. Brian DavisPro Member
Investor · Hatboro, PA · Member since 2016 · 3k+ posts · 867 votes
11mo
Hi @Trevor Neale nice to meet you here on BP! im gonna say what mostly everyone did here. The most effective way to get ahead is to make extra payments directly toward the principal. Even one extra payment per year can cut your loan term dramatically and, in many cases, reduce your total interest by nearly half.
You could also, consider refinancing to a shorter term, it will increases your monthly payment but dramatically reduces total interest.
1 Reply
Austin Plough
Homeowner · Western Slope, CO · Member since 2023 · 42 posts · 21 votes
11mo
Hello @Trevor Neale,
That is a sweet rate you have! You are sitting real good for what is available these days.
Is the extra cash earned from OT or other way? Might you be able to implement a house hacking strategy to bring in more to help offset your monthly obligation?

1 Reply
- Trevor Neale
  OP
  Rental Property Investor · Newark, NJ · Member since 2023 · 57 posts · 23 votes
  11mo
  Quote from @Austin Plough:
  
  Hello @Trevor Neale,
  That is a sweet rate you have! You are sitting real good for what is available these days.
  Is the extra cash earned from OT or other way? Might you be able to implement a house hacking strategy to bring in more to help offset your monthly obligation?
  
  From cash flow
  0 Reply
JD MartinBusiness Member
Moderator
Rock Star Extraordinaire · Northeast, TN · Member since 2015 · 10k+ posts · 16k+ votes
11mo
No way should you be paying that rate off early unless you are about to retire and get significantly less income and need the money, or are about to die and want to leave your heirs a paid for house. Otherwise you can take the extra payment and make 4-5% with no work, basic investing.
Podcast Guest on Show #243
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1 Reply
Allan C.
Rental Property Investor · Member since 2018 · 826 posts · 810 votes
11mo
Wait a few years and you’ll understand why most folks are telling you to stay leveraged. Your older you will thank the current you for listening to these folks who have years of experience.

FWIW, I would get all of my assets on a 100 yr interest-only loan if I could. As you gain experience investing, you’ll realize that your opportunity cost is higher than most interest rates that you’ll come across.
2 Reply
Priyank Yagnik
Real Estate Agent · Plano, TX · Member since 2022 · 9 posts · 5 votes
11mo
Listen to Dave Ramsey for 1 month on YouTube or Podcast!
0 Reply
- Dan H.Pro Member
  Investor · Poway, CA · Member since 2015 · 7k+ posts · 8k+ votes
  11mo
  Quote from @Priyank Yagnik:
  
  Listen to Dave Ramsey for 1 month on YouTube or Podcast!
  
  Dave Ramsey advice is for the masses who cannot manage to constrain spending to their budget and accumulate large debt. His advice is good advice for those people, which is a lot of people.
  His advice is marginal for those barely financially competent.
  His advice is hindering to those with a pretty good or better understanding of financing. That includes many BP users who have little or zero bad debt.
  In this case I preach what I say as my debt is over 800x my 2024 income (I question if my debt ratio is the highest of all BP users). I have this crazy debt ratio without any bad debt (no credit card debt, no car loans, no personnel loans, no toy loans (I have various ritually every toy: 7 cars, 2 boats, a motor cycle, beach house - still missing a plane)).
  Dave Ramsey’s advice is correct for many/most Americans but is hindering to most BP users.
  
  best wishes
  
  2 Reply
Adam MaciasPro Member
Real Estate Consultant · Fort Collins, CO · Member since 2022 · 291 posts · 178 votes
11mo
Earn more income. It's the only way to pay anything off faster. Focus on earning more income.
0 Reply
Jordan Outen
Member since 2025 · 18 posts · 6 votes
11mo
Look into refinancing if the interest rate is high. Pay bi weekly or throw extra money in your monthly payment, that'll help you pay off the interest quicker while adding to your equity quicker. Remember your monthly payment is principal and interest put together and each month you pay, more of your payment goes to principal than it does for the interest.
0 Reply
Bill Goodland
Rental Property Investor · Allentown PA, United States · Member since 2016 · 567 posts · 442 votes
11mo
Quote from @Trevor Neale:

Hello to all, hope all is well. I have a mortgage and I am looking at my balance and doing the math the lenders are winning with the interest. How can I pay mortgage so it will be in my favor and see a drastic decrease in my mortgage instead of paying tons in interest. Thanks

Whats your interest rate? And what is your goal?
For most on biggerpockets, I think our goal is to grow our net worth and cash flow. If your goal is to pay as minimal interest as possible, then pay as much money towards your principal as early and as often as you can.
If your goal is to maximize growth while minimizing risk, I would take a careful look at your interest rate, what your expected return is in real estate and consider using extra funds to buy cash flowing assets as a discount and use that to fund your payments and lifestyle without overleveraging.
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