How to Pay Off Your Mortgage Faster

Short answer: The main way to pay off your mortgage faster is to pay extra toward principal, whether that's a little each month, a biweekly schedule or an occasional lump sum. The CFPB (2026) says even $100 more a month may cut several years off your loan. Before you start, check that your loan has no prepayment penalty and that your servicer applies the extra money to principal, not interest.

How Does Paying Extra Shorten Your Mortgage?

Your periodic statement shows how much of each mortgage payment goes to principal, interest and escrow.

When extra money goes to principal, the balance you owe drops faster. The Consumer Financial Protection Bureau (CFPB) tells borrowers that even modest extra payments, such as $100 more a month, may reduce the loan term by several years.

The key is where the extra money goes. The CFPB advises checking whether your loan allows extra payments and, if it does, making sure they're applied to principal rather than interest.

5 Ways to Pay Off Your Mortgage Faster

Method	How it works	What to watch for
Extra principal each month	Add a set amount to your regular payment	Confirm it's applied to principal
Biweekly payments	Pay half your monthly payment every two weeks	Third-party programs may charge fees
One extra payment a year	Make a 13th monthly payment once a year	Same principal check
Lump-sum payments	Put a windfall, such as a bonus, toward principal	A large lump sum can trigger a prepayment penalty on some loans
Reaching 80% to drop PMI	Pay down to 80% of original value, then ask to cancel PMI	Conditions apply, and FHA and VA loans have their own rules

1. Add Extra Principal to Each Monthly Payment

This is the simplest option. Pick an amount you can keep up with and add it to each payment. Your servicer has to credit full payments to your account on the day they arrive. Ask how to mark the extra amount so it goes to principal, then check your next statement to confirm the principal balance dropped by the extra amount.

2. Switch to Biweekly Mortgage Payments

With biweekly mortgage payments, you pay half your monthly payment every two weeks. Because there are 26 two-week periods in a year, you end up making the equivalent of one extra monthly payment each year.

Be careful how you set this up. Some companies offer biweekly programs for a fee. In 2015 the CFPB sued one of them, Nationwide Biweekly Administration, over a setup fee of up to $995 and processing fees of $84 to $101 for each year a borrower stayed enrolled. Before paying anyone, ask your own servicer how to make extra payments directly.

Also ask how your servicer handles payments that are less than a full monthly payment. Under federal rules, a servicer may hold partial payments in a separate account until there's enough to cover a full payment of principal, interest and any escrow.

3. Make One Extra Payment a Year

If a biweekly schedule doesn't fit your budget, you can get a similar effect by making one extra monthly payment a year, for example when you get a tax refund or a bonus. Tell your servicer it's for principal.

4. Put Lump Sums Toward Principal

Windfalls such as an inheritance or a bonus can go straight to principal. This is where a prepayment penalty matters most. According to the CFPB, a penalty could apply in some cases if you pay off a large amount of your mortgage all at once, so check your loan terms before you send a big payment.

5. Pay Down to 80% and Ask to Drop PMI

If your loan has private mortgage insurance (PMI), paying extra can help you get rid of it sooner. Under federal rules described by the CFPB (2026), you can ask your servicer in writing to cancel PMI once your principal balance reaches 80% of your home's original value, and you can ask early if extra payments get you there before the scheduled date. To qualify, you generally need to:

• Make the request in writing.
• Have a good payment history and be current on payments.
• Have no junior liens, such as a second mortgage.
• Show, for example with an appraisal, that the home's value hasn't dropped below its original value.

Even if you don't ask, the servicer generally must end PMI when your balance is scheduled to reach 78% of the original value, as long as you're current. The CFPB notes that FHA and VA loans have different requirements.

Is There a Penalty for Paying Off a Mortgage Early?

Some loans have one. The CFPB defines a prepayment penalty as a fee some lenders charge if you pay off all or part of your mortgage early. You agree to it at closing, and not every mortgage has one.

According to the CFPB (2026), a prepayment penalty:

• Usually applies if you pay off the whole balance, such as when you sell or refinance, within a set period, often three or five years.
• In some cases can apply if you pay off a large amount all at once.
• Normally isn't triggered by small extra principal payments over time, though you should check with your lender.

You don't have to dig through your closing papers to find out. Federal rules require your periodic statement to show the penalty for paying off your loan early, if your loan has one.

How Do You Make Your Final Mortgage Payment?

When you're close to the end, ask your servicer for a payoff statement in writing. Under federal rules (CFPB, 2026), the servicer generally must respond within seven business days. Use the payoff figure for your final payment.

After you pay the loan in full, you may have money left in your escrow account. Federal rules require the servicer to refund it, and if the servicer doesn't do so within 20 days of payoff, you can send a written notice of error.

Should You Pay Off Your Mortgage Early?

Paying off your mortgage early is a trade-off: every extra dollar sent to the loan is a dollar you can't use for another goal. Before you commit, ask yourself:

• Do I have savings for emergencies? Money sent to your mortgage isn't available for an unexpected bill.
• Am I getting my full 401(k) match? Our guide to how much to contribute to your 401(k) explains why to start with the full employer match.
• Do I have other debts with higher interest rates? Compare them with your mortgage rate before deciding where extra money goes.
• Does my loan have a prepayment penalty? Check your statement or ask your servicer.

There's no single right answer. A fee-only fiduciary adviser can look at your whole picture; our guide to what a financial adviser costs explains the common fee types.

The Bottom Line

To pay off your mortgage faster, send extra money to principal: a bit more each month, a biweekly schedule you set up with your servicer, one extra payment a year or the occasional lump sum. Check for a prepayment penalty first, confirm each extra payment lands on principal, and watch for the chance to drop PMI at 80%. Our mortgage payment calculator shows how the rate and term drive your monthly payment, our guide to reverse mortgage pros and cons covers another way older homeowners use home equity, and our home and mortgage guides cover other ways to manage housing costs.

Frequently asked questions

What is the fastest way to pay off a mortgage?

Paying extra toward principal, as often and as much as your budget allows, is the main lever. Before you start, confirm your loan allows extra payments without a prepayment penalty and that your servicer will apply the money to principal rather than interest.

Do biweekly mortgage payments really help?

Paying half your monthly payment every two weeks works out to one extra monthly payment a year, which can shorten the loan. Some companies charge fees to set this up. In 2015 the CFPB sued one such company over a setup fee of up to $995 and yearly fees of $84 to $101. Ask your servicer how you can make extra payments directly.

Is there a penalty for paying off a mortgage early?

Some loans have a prepayment penalty. According to the CFPB, it usually applies if you pay off the whole balance, such as when you sell or refinance, within a set period that's often three or five years. Small extra payments over time usually don't trigger it, but check with your lender. Your periodic statement must show the penalty if your loan has one.

Does paying extra on my mortgage get rid of PMI sooner?

It can. You can ask your servicer in writing to cancel private mortgage insurance once your balance reaches 80% of your home's original value, and extra payments can get you there sooner. You also need a good payment history, no second mortgage and proof the home hasn't lost value.

How do I find out exactly how much it takes to pay off my mortgage?

Ask your servicer for a payoff statement in writing. The servicer generally must respond within seven business days, and the statement should give you the exact amount to pay.

Sources

1. CFPB: Your Mortgage Servicer Must Comply With Federal Rules
2. CFPB: What Is a Prepayment Penalty?
3. CFPB: When Can I Remove Private Mortgage Insurance (PMI) From My Loan?
4. CFPB: CFPB Files Suit Against Nationwide Biweekly for Luring Consumers With False Promises of Mortgage Savings (2015)

This guide is general information, not personal advice. Your situation may differ, so consider talking with a qualified professional, such as a fiduciary financial adviser, CPA or licensed agent, before making a decision.