Paying off your mortgage early might feel like climbing a financial Mount Everest, but trust me—it’s worth it. I’m not some financial wizard, just a frugal mom of two who juggled kids, blogging, and fixing up an old farmhouse, all while tackling one big, scary goal. Spoiler alert: We did it in four years. And you can do it, too. Here’s how.
Why Paying Off Your Mortgage Early Matters
Imagine what you could do if you weren’t sending a chunk of your paycheck off every month. Financial freedom feels like a breath of fresh air—a little less stress, a lot more options. Plus, when you look at how much interest you’ll shell out over 30 years, it’s downright terrifying. Go ahead, check your statement and see the total interest you’ll pay. I’ll wait.
Now, wouldn’t you rather keep that money?
Paying off your mortgage early doesn’t just save you money—it gives you freedom. Freedom to eat out without worrying, save for your kids’ college, or maybe even just retire a little earlier.
Step-by-Step Guide to Paying Off Your Mortgage Early
Before we go any further, let’s get into the nitty-gritty of how this works. Here’s our roadmap (and the one you can tweak to fit your life).
1. Calculate How Much You Can Pay Extra
Start with a mortgage payoff calculator to see what an extra $100, $300, or $1,000 each month does to your loan. For example, if you have a $200,000 mortgage with a 30-year fixed rate at 4%, adding $300 per month could save you over $64,000 in interest and shave off 11 years!
2. Budget for Extra Payments
If the idea of “finding extra money” makes you roll your eyes, I get it. Here’s what worked for us:
- Living below our means—no surprise vacations, no upgrading our cars.
- Allocating side hustle income (like blogging profits) directly to the mortgage.
- Cutting down discretionary spending. Meal planning to avoid overspending at the grocery store saved us hundreds.
Even $100 extra a month matters. If you’re paid biweekly, try this hack: Split your monthly mortgage payment in half and pay every two weeks. That adds an extra payment each year and shortens your term without you even noticing.
3. Avoid Lifestyle Inflation
My husband’s income paid the bills, saved a little, and covered our needs. When my blog started earning extra, we didn’t treat that income as “fun money.” We directed it all to the mortgage. Sure, upgrading your life as your income grows is tempting, but staying consistent with your payments leads to bigger rewards.
4. Use Additional Income Wisely
We got lucky with a new affiliate program that boosted my blog income—this was a game changer for us. Whether it’s a raise, a bonus, or a side gig, treat anything extra as a golden opportunity to make a dent in your debt.
5. Start Small, Then Scale Up
Our first goal was an extra $100 per month. Over time, that grew to $300, and eventually, as my side hustle picked up, we were able to put thousands towards the mortgage. Don’t get discouraged if it feels small at first—small wins add up fast.
6. Plan for Setbacks
We hit a snag when our mortgage payment went up by $300 a month because of a tax miscalculation when we moved into our farmhouse. At first, I thought this would crush our plan, but we kept going. Some months, the “extra payments” were more modest, but sticking to the plan—no matter how small the amount—made a difference.
When this happened, I had no choice but to do a no-spend month. It was a game-changer and inspired me to help others. When things get tight or we have a big money goal, I’ll do a no-spend month.
7. Review and Adjust Regularly
Life changes, and so should your plan. We’d check our budget every few months to see how much extra we could afford and adjust accordingly. Flexibility is key.
Common Challenges and How to Tackle Them
What If I Can’t Afford Extra Payments?
Start by revisiting your budget. Cut out low-priority expenses, take on a small side hustle, or redirect tax refunds and bonuses. Even small adjustments like ditching a streaming subscription add up over time.
Should I Refinance to a 15-Year Mortgage?
If refinancing makes sense for you, it’s worth considering. A shorter term usually means lower interest, but your monthly payments will be higher. If refinancing isn’t an option, tackle your 30-year mortgage like it’s a 15-year loan by simply adding extra payments.
What If My Mortgage Has Prepayment Penalties?
Check with your lender—most modern loans don’t have these penalties. Federal laws often prohibit them, but it’s always a good idea to call and confirm.
Tools to Help You Get Started
- Mortgage payoff calculators to plan your payment schedule.
- Budgeting apps like Mint or YNAB to stay on track.
- Spreadsheets to track your extra payments and progress over time. Watching your principal drop is incredibly motivating!
Living Below Your Means: The Key to Freedom
This was our secret weapon. From 2016 to 2020, we lived like we were still broke—even when my blog income turned full-time. We cooked instead of dining out, DIY’ed instead of hiring help, and skipped expensive vacations. It wasn’t glamorous, but it worked.
Listen, my girls didn’t go on their first REAL vacation until last year, 2024!
Sure, now that we’re debt-free, we could loosen the reins. But honestly? I still don’t want to go out to eat every week. Financial freedom is way better than a frozen steak dinner that costs you triple the price.
How Much Was Our Mortgage?
People often ask for the exact amount we paid off, but here’s the thing—it doesn’t matter. Your mortgage might be double ours, or it might be less. Comparing numbers is pointless because the principles work no matter what. Focus on your income, your budget, and your goals.
The Emotional Benefits of Paying Off Debt
Beyond the numbers, paying off our mortgage changed our lives in ways I didn’t expect:
- Less stress. Knowing we own our home outright is a huge relief.
- More options. We finally had the freedom to make choices not dictated by money.
If you’re a Christian, I’ll share one other thing that kept us moving forward—we prayed through every roadblock. Whether or not prayer is your thing, staying focused on your purpose makes the bumps in the road much easier to handle.
The Payoff—Literally
When we made our final payment, it felt surreal. It wasn’t easy, but it was worth every small sacrifice. The bank did NOT want us to make that payment!Now, instead of throwing money at our mortgage, we invest, save, and have breathing room for life’s unexpected moments.
We even planned our first BIG family trip to Jamaica this year!
Do I regret even a second of the hard work? Not for a minute.
Takeaway: Start Your Journey Today
Financial freedom is within reach—you just have to start. Here’s your plan:
- Use a calculator to figure out your payoff strategy.
- Start small with extra payments.
- Celebrate small wins along the way.
Remember, every dollar counts. Your mortgage payoff might take longer or shorter than ours, but if you stay consistent, it will happen. And trust me, the freedom on the other side is so worth it.
Got questions or want to share your progress? Drop them in the comments—I’d love to cheer you on!
Upside Down Taco Nachos in the Ninja Foodi
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