How to Save Thousands in Interest and Pay Off Your Mortgage Faster

Owning your home outright may seem like a distant dream, but with a few simple strategies, you can significantly reduce the total interest you pay and become mortgage-free years ahead of schedule. Whether you're just starting your mortgage journey or already a few years in, these easy-to-implement tips can make a huge financial impact without drastically changing your lifestyle.

1. Round Up Your Monthly Mortgage Payments

One of the simplest ways to chip away at your mortgage faster is by rounding up your monthly payments. Let’s say your current mortgage payment is $734—if you consistently round it up to $800, you’ll be contributing an extra $66 each month directly to your principal.

Over time, this modest adjustment can result in massive savings. In fact, making this change could save you more than $48,000 in interest and help you pay off your mortgage 7.5 years earlier!

Why It Works:

• Extra payments reduce the principal balance

• Less interest accrues over time

• You shorten your amortization period

2. Apply Your Tax Refund to Your Mortgage

Instead of spending your tax refund, consider putting that lump sum directly toward your mortgage principal. It’s a one-time effort with long-term benefits.

For example, if you have a $100,000 mortgage and apply a $1,000 tax refund, you could save over $8,600 in interest and reduce your mortgage term by over a year.

Tip:

Most lenders allow annual pre-payments without penalties—double-check your mortgage terms to ensure you’re maximizing this option.

3. Consider a Shorter Loan Term, Like a 15-Year Mortgage

If your budget allows, opting for a 15-year mortgage instead of a 25- or 30-year term can be a game-changer. While the monthly payments are slightly higher, the amount of interest you save is substantial.

For example, on a $100,000 mortgage at 8% interest:

A 30-year term may seem more affordable initially.

But choosing a 15-year term could save you over $92,000 in interest—with your home paid off in half the time.

Benefits of a Shorter Term:

Builds equity faster

Saves you tens of thousands in interest

Offers peace of mind knowing your home will be paid off sooner

Final Thoughts

Paying off your mortgage doesn’t have to be complicated. Small, consistent efforts like rounding up payments, applying lump sums like tax refunds, or even committing to a shorter loan term can all lead to substantial financial benefits.

Remember: every extra dollar you put toward your mortgage reduces your principal, shrinks your interest burden, and brings you one step closer to financial freedom.


Need guidance?

Contact your friends @ The Goldmark Group
416 556 9828 - 519 556 9828
info@thegoldmarkgroup.com