Easy Ways to Pay Off Your Mortgage Early 

I paid my 30 year $455K mortgage in 7 years in December 2023! Scrimped saved and made significant sacrifices for those years. No new cars little entertainment rarely went to restaurants. All bonuses, tax returns, gifts were turned over to the bank. Wife wanted to hang me. Got through it and we now own our 950k house. No mortgage, no auto loans and no card debt because we didn’t spend money. We are financially free to do whatever the heck we want now. Btw we kept up with our 401k investments the whole time. It can be done! My rich friends still have many payments and are envious. Same people who poked fun because I drove a 10 year old car. lol.

Asking a real estate agent whether you should buy a home right now is like to asking an alcoholic whether they think you should have a drink lol. Homes in my neighborhood that cost around $450k in sales in 2019 are now going for $800 to $950k. Every seller in my neighborhood is currently making a $350k profit. Simply unreal. In all honesty, deflation is what we require. The only other option is for many people to go bankrupt, which would also be bad for the economy. That is the only way to return to normal.

It's risky to force yourself into a 15 year mortgage. Keep your 30 year and just make additional principal payments

Remember extra payment to principal.... Some people don't understand that. When you make your extra payment, apply it to the principal only!

We paid off our mortgage in January. I had a 15 year at 2.25% and so many people told me not to do it since the money was so cheap. It was a tough decision, but now that it's done, I don't have to throw additional payments to the principal every month. Now, the money we make is ours and let me tell you, we have been splurging the last couple months for sure. No regrets here. Very thankful for sure!

The only thing i would say is that you don't need a 15yr mortgage to pay it off in 15 years. In fact, i would recommend people take a 30yr loan BUT pay it at a 15yr pace. This is a long period of time and you never know when hard times will come. Today, you can pay off mortgages penalty free so if you fo with 30yr loans it gives you flexibility. If you or your partner lose a job, you have the option to pay significantly lower payment. If not, you keep paying it off at a 15yr rate and get it done early.

We’re paying off our home this year after 15 yrs and at 40 yrs old. No other debt, it feels good.

One trick is to print off the 30-year amortization schedule showing each month’s principle and interest. Then whenever possible, pay extra money into the loan. After doing this a few times, then re-print the amortization schedule to see how much interest you have saved. That will encourage you keep sending in even more extra money.

Mortgage rates are currently at an all time high since 2000(23 years) and based on statistics on inflation, we might see that number skyrocket further, a 30-year fixed rate was only 5% this time last year, so do I just keep waiting for a housing crash before buying or redirect my focus to the equity market.

Round your payment up the next hundred can not a few years off the loan. I did that for 14 years and it knocked 5 years off.

We had a 5 year plan to pay the rest of our mortgage off starting Jan 2021. We ended up paying it off in 2.5 years. Once you start seeing the balance come down fast, it's addicting. Once, I even put my $100 Christmas money from my parents on it when the balance was around 400K. We tried putting at least 7 payments per month on it, regardless of the size.

Thank you for all the great information, Rachel! Because of listening to all the great videos coming out on Ramsey, I have been encouraged/my husband and I have been encouraged to pay off our mortgage early. We have about a week and a half to finish.🎉🎉🎉🎉🎉🎉🎉🎉

Hear, hear. I bought in 2022. I’ve lived here around 18 months, but I’m” 6.5yrs” on my amortization chart.

The future belongs to those who believe in the beauty of their dreams. Success is a state of mind. I think I'm blessed because if not I wouldn't have met someone who is as spectacular as Expert Mrs Lucy Mary Liam.

I'm down to my last $21,400 on my home, if I follow my plan I'll be paid off in 2029 that will be around 13 years early, original pay off date was 2043

The key is to don't buy an expensive house. A 3 bedroom 2 bathrooms is good enough. Nothing over $300k otherwise you will pay for longer.

If you're already in a low rate mortgage, don't refinance. Just look up a 15 year mortgage online and see what the monthly payment would be and pay that extra amount toward principal on your current mortgage. Just pretend you're in a 15 year by paying the amount a 15 year would be. The years will just fall off your 30 year fixed.

I finally cleaned up my act and am maxing out retirement IRA by this June for both my wife and I. After that, 4x principle payments each month through the end of the year. Can't wait to see the balance drop.

Thank you for this video! This is helpful information ❤ I absolutely love your company, the values and the character of your family and the employees at Ramsey Solutions. Such a blessing to others.

Another 31 months left if we are healthy and keep up with the plan. Can’t wait to be debt free and enjoy more with kids and hubby.

My grandma paid her house off four years early in 1987. Freeing up the house payment only released $120 a month. So getting this done very early is very worthwhile. 26 years of inflation doesn't give you much money when you're done with the house.

Thank you so much for your motivational videos. May I ask- does it matter what day of the month you make an interest only payment?

First comment! Love your videos! Always providing great advice!

I would not refinance a loan from 30 to 15 year if you are good about paying extra towards the loan. People always make it sound like it is free to refinance, but nothing is free and those costs are $$. Sure the bank will just 'wrap those closing costs into the loan' but that will cost even more.

I pay my principle payments WEEKLY just for the peace of mind that I did the payment create the discipline and to stay on track I treat my extra principle money like a another bill I see the light to the finish line

Owned my condo 5 years, re-fi’d in 2021 to a 30-year, made extra payments from Day 1. Saw in Oct. interest was 50% of my remaining balance if I stick to the 30-year schedule! Nope! Double my mtg. each month, straight to Principle. Should be done in 7-years.

My payment is so low (under 10% of take home pay) and at 3.3%. Right now CD’s pay better. Not including taxes, my payment is $850. It just doesn’t make sense right now to pay off early. It will naturally be gone in 7 years.

When I bought my first home, I used a simple trick of setting up an automatic payment where I had rounded the payment amount up to the nearest $100, with the extra, of course, going to the principal. You'll never miss that little amount, but over time it does make a difference. Then I started making significant additional payments when I could, ultimately resulting in paying it off in about 6 years. The payment difference between a 30 year and a 15 year mortgage is often very little--plan to pay at least that difference each month. Get a raise? put that on the mortgage. It all adds up very quickly.

I make 13 principle payments a year and pay one quarter of my mortgage weekly. I have solar panels, so I have had no electric bills for 23 months. Also, the federal tax credit for solar is 30%.

Timely video. Yes home ownership is expensive!! We buolt our house in 2022 and it was double what we predicted would cost us. A big factor was the cost of labor and material had sky rocketed. We anticipated on having a loan but not close to what our loan came out to be. We sold our old home put money into building the new one but still had 249k. Signed up for 30 yrs but paying it as if its a 15yr. Thankfully our rate was locked at a decent number 3.85% before it shot up everywhere to 6-7%. We are putting extra $650 monthly. Would like to add more once we built our emergency fund back up.

🙋🏼‍♀️Hi Rachel. I have a question about the 25%. Is this percentage on net income, for the mortgage only, or adding in utilities and any other monthly charges that have to do with the home? Your video comes at a time when I’ve been crunching numbers. My focus has been on paying down(and off) other debt and we’re almost there. But now I’m looking at amortization calculators with the goal of paying off by or before retirement. And you are so right about having a savings for maintenance and unexpected home repair. In the past we’ve had to finance a furnace HVAC and water heater replacement. Now our roof, as it is 20yrs old.

I love these tips. I have a question please: Instead of making an extra payment per quarter, can I just pay extra per month? In other words, if my payment is $1200/month, can I pay an extra $400 per month, instead of making an extra payment at the end of a quarter? Is there a difference?

Working on this...my balance is 203k and plan to add at least 100 to 200 each month, and add more when I can

I bought in 2009 and my mortgage at that time was 45% of our take home pay. We were not making much income and borrowed for the 3.5% down payment. It was a terrible decision at that time that payed off in the long run. Eventually our income grew and now we have a mortgage that is lower than a studio apartment. It was right when the market crash and we got the deal of a life time. It was by far the riskiest thing I’ve ever done

Love the video

I'm trying to reduce from 5 to 3 years or 2.5...not sure if it will be possible, but that would mean my mortgage, for which I put 0% down (I didn't know Dave then) will be over in 22.5 years.

It is humbling to think that at least part of your childhood was spent with the broke Dave Ramsey. Your family has come so far and helped so many others with the journey. Thank you!

Live here in Canada and try whatever you said ,let me see if you can pay off even a credit card!

Interest rate is currently at 4.75%(8th rate hike since March last year) Inflation at 7% and mortgage rates is at over 7.5% but yet minimum wage remains the same and my retirement portfolio has suffered tremendously these past years, so my question is how do senior citizens retire and live off such unstable economy. The long term game is obviously not for me at this point.

You’re always better off with a 30 year and paying additional principal as if it’s a 15 year. If you run into any issues like an emergency or job loss you can always just pay the 30 yr payment until you find a new job. But what if you’re stuck at the 15 year payment and not paying the full amount puts you on a path to foreclosure? Get a 30 year and treat it like a 15. The math maths almost identically. The Ramsey methods are very flawed.

Great advice.

Couldn’t you make your 30-yr mortgage down to a 15-yr mortgage with extra payments, particularly if you have a 2.25% interest rate?

Hi! Why isnt the EveryDollar budgeting app available in Canada?! Regards, Android user

i bought my house in 2017 4.1255% i was only payin round up to the nearest hundred started out about 59.and some change my extra on principle eventually got to 33.and some change so in middle if 2023 i bumbed it anither 50 bucks and starting in jan2024 im bumpun 50 each time putss me at 240 extra almost but u dint really see it helping uts so far😝

Thanks for explaining the obvious

Enjoy your videos Rachel ! My prepayment plan one extra payment per year. If you have a $1200 principal and interest payment put $100 extra in every month. I believe that pays a 30 year mortgage off in 18 years. If you do that on a 15 year mortgage it really pays down principal. My first house in 1978 9/34 rate second house 1985 a 12.50 rate.

I dont plan to pay off my mortgage early. My interest rate is only 2.75 percent. My money makes more staying in savings these days. Im retired, so my money has to work hard.

I will have my house paid off in less than 4 months. I have a goal for 4 months because my insurance renewal comes in September. Currently it's 7k and that is more than double what it was a year ago. FEMA rezoned my home to a flood zone, so the Mortgage company required it. So I have decided to pay it off completely and get my insurance on my own. They want me to pay off the total before they will refund my escrow.. totally ridiculous!!! I don't care if I have only a few dollars in the bank. I am paying it off!!!

About a year left on my mortgage to be paid off. Started with 30yr. but will pay off in 15yrs. (Extra Payments)

can the every dollar app handle more than one bank account? I have two checking accounts and two credit cards (those are paid off every month).

Personally I dont mind a 30 year mortgage - yes its higher interest but I like the flexability short term having the extra cash now.

You didn’t mention paying twice a month instead of once a month. We pay half of the mortgage payment on the 5th and the other half in the 15th. This builds in the extra yearly payment.

I have a 3% mortgage interest rate and suddenly became liquid from the sale of a business and i am confused if i should pay off my mortgage or invest in the stock market.

How did you do that? I pay principle and interest on the 15th of current month for the 1st. I also add another $200 a month towards principle. Just did the math. I refinanced on 8/21 at $318k and now owe $280k. My payment is $1740 a month. If I times that by 13.5 years I’m payed off. How can I pay it sooner? In 7 yrs as you?🙏💪

Can't you accomplish the same thing by paying extra on the principal every month without being locked into a higher payment in the event an emergency arises and also you don't have to pay the extra couple grand it will cost to refinance.

Papa Dave says if you invest in stocks you will get a 12% return year over year. Why pay off your mortgage? Fun fact: $330,000 in stocks would net you $11,530,000 @ Dave’s 12%. A $330,000 30/yr mortgage will cost you $327,490 in interest @ 5.27%. The reason why Dave advocates to pay off your house is because Dave really doesn’t believe that you will make 12% in the stock market every year. But he wants to sell you hope (and books, and investor pros who pays Dave handsomely to be on his silly “vested” list).

7k canadian left after 17yrs. Need that extra money

@4:20 why the heck would you refinance a loan if your just trying to pay it off earlier? You're going to have to pay a couple hundred at minimum just to get it refinanced, it also forces you into paying it off rather than just paying down extra principal each month.. I barely see any reason to refinance an existing mortgage if you just plan on paying it off earlier anyway. If the interest rate isn't significantly lower it's pointless, also if you plan on paying it off faster than 15 years it's also pointless. Additionally, if the mortgage is literally going to be paid off in 20 years because you've owned it for 10 already it makes even less sense. Who do they expect the people who have no debt, tons of investments, that have a freshly bought 30 year mortgage house? It wouldn't surprise me if the average person who is looking at paying off their mortgage is already 10-15 years into owning their home.

Hi Rachel, I bought my first home 4 years ago. I have a 20 year fixed rate mortgage at 1.37% (I know it’s crazy low). I currently have 169.000€ left on the mortgage. My current mortgage payment is €640.40 (€192.84 in interest, €447.56 in principal). I know debt is debt and you would want it to be paid off quickly, however I would be getting more interest on my money in the bank than it would be to pay off the mortgage. Would you say it is wise for me to start paying off the mortgage or just do that after the 20 year fixed is over (currently still 16 years left)?

I find a whole lot of comfort in my mortgage. I sold my home several years ago and invested the money in mutual funds. A couple of years later I bought another home. Instead of buying it out right with the money from my first home, I took out a 30 yr mortgage at 3%. The $350K I would have put in the house continues to generate about 8%. I am now about $200K ahead due to the mortgage. Please stop telling people to act on comfort; i.e., emotion and instead use rational thinking in managing their money.

The pic i clicked on said escrow was 0. Does that mean i shouldn't buy insurance and pay my taxes! I'm kidding, cept that was misleading to me!!!!

What is better, make extra pays every two weeks or do a big one once a year??

I'm Married 51 year old if I payoff my house early and it's my only Asset what can we do at Tax time not to payback so much if we don't have anything to claim

While agreeing in principle, strategy and rationale to pay off your mortgage early, the cover image for this video showing a total payment of $0 is misleading. The Escrow line item that would have been for funds to cover taxes and homeowner insurance is still your responsibility. It doesn't go away after paying off your mortgage. Only the principal and interest goes to $0.

@rachelcruze isn't some of what you said outdated in this real estate market of The Last 5 Years? Reports of shown that Americans are spending 50% of their income on home ownership because of the inflated housing prices, low inventory, and inflated rates. So a 25% of income housing expense doesn't sound realistic.

We have a 15 yr mortgage at 2.2% interest rate with 10 yrs to go. With such a low interest rate does it make sense to pay it off early rather than invest that extra payment?

6:53 typo!

Wow, what a revelation. Pay more per month in order to pay your mortgage loan faster. How come I did not think about it?

Why would you refinance from a 30 year mortgage to a 15 year mortgage? Closing costs on that would be $20k or more. There is no benefit to that. Just pay extra towards the mortgage

On track to pay off in 8 years, 10 months total.

“I’ll show you the math” . . . did you forget? I’m waiting, Rachel

One simple reason not to. I have a 2.5% 30 year fixed mortgage 😂

You spelled doller wrong @6:50

Do you still invest 15% in mutual funds during retirement?

Why rush to pay down mortgage? If house prices continue to rise + inflation, you are better off repaying it the longest time the bank allows. The extra money per month can be invested and will give you better ROI than paying down home. Plus, you never own it outright, you always owe property tax/insurance

If you pay as if you're in a 15-year mortgage, but you're really in a 30-year mortgage, is it the same as if you were truly in a 15 year? Hope this makes sense. Good luck

You can pay like you have a 15 year mortgage but have the leverage to not do that if you have an emergency.

I'm single, bought a house because rent is more than my house payment, but, my payment is half my income. I'm going to have to get a second job....rent and house payments are ridiculous. I put down a huge amount but still....living paycheck to paycheck.

Update thé short for this 1:41

I live in an apartment to pay off my mortgage.

Refinancing after having a mortgage for a while is a horrible idea. The reason is because you start ALL over again day one paying interest again. Just like in the beginning because it is the beginning. Don’t ever refinance. Figure out another way. Just don’t do it. Even if the rate is lower. Just pay more on your mortgage each month. I know because we refinanced a couple of times until I finally decided never again. Now we will have the house paid off about 7 years earlier because we are so king it to that mortgage every month.

Advice starts at 3:27

Why not take out a 30 year loan for a cheaper monthly payment and use the money you are saving from a higher 15 year payment and invest that extra extra money and then before the first 15 years are up you will probably have enough invested to pay off your 30 year mortgage in Less time than your 15 year mortgage and probably with money left over.

Exactly you become a bit obsessed with the goal. 😂

All of this advice was great except the 15yr refinance. That's a horrible idea. One big emergency and your credit and savings account are done. Never give away your leverage and options.

You never own your home outright. You still have to keep paying tax on it every year.

Left when the 15yr mortgage.

You really think rates will ever be below 3% again?

with all this inflation ...

Having a dad worth about $600m helps I imagine.

You shouldn't yell at anyone

So this only applies to 5-10% of the population?

Let's face it, there's nothing easy about paying off early. You must have extra funds available and discipline to do it. It's a great strategy, but not easy.

$1.2m home with $800k mortgage, minimum repayments were $4k/mth. We chose to pay $8k per month for the last 7yrs and are on track to pay off in 3 more years. I hope we make it, times are tough and job security is starting to look shaky 😢

''easy way to pay off your mortgage'' do not have one. do WHAT EVER IT TAKES TO PAY CASH...

Free version of Every Dollar isn’t user friendly but they only know the pay version.

Is it me or does Rachel have a great tan rn? 🥵🔥

if your rate is lower than 5% NEVER pay mortgage , who will give you money at that rate

You and George are doing the same content….

#1 have your daddy pay it off for you