How To Pay Off Your Home Fast and Save Thousands

Transcribed from the Michal Sluka / Michael Huber YouTube Video – see below for written, condensed version.

Based on a mortgage with a 25-year amortization, $450,000 loan at 2.79%.  A 25-year amortization means that this mortgage will be paid off fully in 25 years if no changes such as refinance are made to the mortgage loan.

1) Accelerated Weekly or Bi-Weekly Payment – Instead of making 12 monthly payments during the year, you will make 52 weekly or 26 bi-weekly payments (weekly payments are 25% of a full monthly payment while biweekly are 50% of a full monthly payment.) 

This amounts to approx. one extra payment per year plus the increased payment frequency lowers the amount of interest required to be paid over the course of the mortgage.

This payment strategy will knock almost 3 years off of your amortization.  Loan paid off in approx. 22 years vs. 25 years.

2) Increase your payment amount by up to 20%.  Example-on a hypothetical $1000/month mortgage payment, you could increase that payment by any amount up to 20%.  In this case, up to $1,200 dollars.  The extra $200/month goes directly against your principal outstanding at each payment, decreasing your amortization by approx. 5 years.  20 year payoff vs. 25 year.

By Utilizing these two payment options, you will pay the above mentioned $450,000 mortgage off in 18 years and save $56,254.13.

3) Lump Sum Payment – On top of the above two features, lenders will typically allow you to put down 15-20% of your original mortgage amount against the outstanding principal.  This feature is a great way to pay off your mortgage fast if you receive bonuses from work or an inheritance that you want to apply against your mortgage.

For a $450,000 mortgage, this pre-payment feature would allow you to put $90,000/year against the mortgage principal annually.

Thank you very much for reading.  Please share 🙂

One of my hobbies is blogging about mortgages, debt and government policy.  During the day I’m a MORTGAGE BROKER!

Check out the Huber Mortgage Home Buyers Guide HERE



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