Paying Off Your Mortgage Early | Clearwater Credit Union

Paying Off Your Mortgage Early

Ahhh. There’s nothing like making that last mortgage loan payment. For many of us, that can seem like a long way off, but there are a few things you can do to help pay off your loan early, like refinancing to a lower interest rate or rounding up your monthly payments. Here are some of the common ways to pay off your home loan sooner.

Refinance 

When interest rates drop below your current home loan rate, refinancing to that lower rate may reduce your monthly payment and the interest you pay over time. Those savings may also allow you to reduce the term of your loan while still maintaining an affordable payment. Check out our Mortgage Refinance Calculator to estimate your savings.

Make Extra Payments 

This can reduce the amount you have left on your mortgage with every extra payment. Adding a full or partial extra payment every month can help you save thousands of dollars in interest payments. Try out our Mortgage Payoff Calculator to estimate your savings.

IMPORTANT: Before you start making extra payments, please email or call Mortgage Servicing to ensure we get it set up correctly to apply those extra payments to your principal balance.

Make an Extra Annual Payment 

If you can’t swing extra monthly payments, even one extra payment a year can help you pay off your loan early and save you money.

Round Up Each Payment 

By rounding up your payment to the nearest $100, you could reduce your principal quicker.

Add $1 Every Month 

Want to reduce the term of your loan by years? Add $1 per month, every month. For example, if your monthly mortgage is $1,751, pay $1,752 the first month and then $1,753 the next. Continue this trend, and you could pay your loan off years earlier.

Add Bonuses to Your Home Loan 

Whenever possible, apply holiday or annual incentives to your home loan instead of spending it on something else. Every dollar toward your mortgage will help pay it off sooner.

Let’s Do the Math 

Want help determining the best way to pay off your loan early? Our Mortgage Servicing Team can help you crunch the numbers and get everything set up correctly. Just email or call them at 406-523-3360.