Here’s how we paid off our mortgage more than 20 years earlier than expected—finishing in less than half the original term.
Buying our home was equal parts thrilling and intimidating. There was the upheaval of moving and the challenge of finding a mortgage partner we trusted. By the time we moved for the third time, we were moving four young children—so the logistics alone were demanding. Still, the biggest reward was buying a home we truly loved.
House hunting is enjoyable for me, but the buying process is a different experience. Identifying what you need in a home and finding the right lender can be difficult. My husband, Mickey, had years of experience working in the mortgage and insurance industry before transitioning to work from home, and that background helped us make smarter choices.
Finding a mortgage partner who leaves you feeling financially confident is essential. Buying a home is one of the largest financial decisions most people make, and understanding your options brings clarity and confidence.
So what practical lessons did we learn that can help you on your home-buying journey?
- Buy low and use sweat equity. We’re not afraid to tackle renovations. My husband and my dad have done countless improvements—adding porches, building features, and making cosmetic upgrades. A house doesn’t need to be perfect to be a great buy; with effort, you can transform it into something even better than you imagined.
- Don’t automatically rule out foreclosures. Our current home was a foreclosure and we saved over $100,000. It needed little to no major work, and it was a pleasant surprise when we first walked in.
- Pay your mortgage bi-weekly. Scheduling mortgage payments every other week effectively makes one extra monthly payment each year, which can shorten the loan by several years. Alone, this approach could cut a typical mortgage by roughly eight years; combined with additional principal payments, the payoff timeline can be dramatically shorter.
- Set a clear goal. We decided we wanted the mortgage paid off before our oldest child started college so the money we had been using for mortgage payments could go to tuition instead.
- Direct extra income to the mortgage. We committed to applying all extra income—bonuses, raises, tax refunds—toward the mortgage principal, and avoided big-ticket purchases like new cars, electronics, or extravagant vacations until the mortgage was paid off.
- Use windfalls wisely. Putting tax refunds or other unexpected income toward principal reductions accelerates payoff and reduces interest paid over the life of the loan. Following this strategy helped us shave more than 20 years off our mortgage timeline.
- Ask for guidance. Working with a trusted mortgage professional taught us more efficient and informed ways to save and pay down the loan. Having that expertise gave us confidence to make choices that aligned with our goals and set us up for a strong financial future.
In short: buy wisely, be willing to improve your property, use payment strategies like bi-weekly payments, apply extra income to principal, and lean on knowledgeable mortgage partners. Those steps helped us reach freedom from our mortgage years ahead of schedule—proof that deliberate planning and disciplined action can dramatically change your financial path.