Sounds like an easy concept—and it is. It doesn’t always have to be a lot either. For example, just paying an additional $50 per month on a $300,000, 30-year mortgage payment means the loan would be paid off in 27 years and 11 months, 2 years and 1 month early, resulting in a savings of $29,211 in interest over the life of the loan. Just be sure your mortgage company is applying the extra payment towards principal.

Many websites offer this feature, probably your own mortgage company website has it, just look for an Amortization Schedule Calculator or Mortgage Payoff Calculator. Using this method of prepayment will require discipline, but most mortgage companies offer automatic drafts where you can designate a specific amount in addition to your regular payment to be applied towards principal. Do check to make sure your particular mortgage doesn’t have any pre-payment penalties.

Tip #2: Consider shorter term mortgages

Shortening your mortgage term from a 30-year to a 20- or 15-year mortgage is a great way to pay off your mortgage faster. By refinancing, you are committing yourself to the higher payment but usually benefitting from a lower interest rate. For many who currently have very low interest rates on a 30-year loan, refinancing is probably not a good option for you right now. But you can decide how much more you can afford per month and calculate what effect this will have on your repayment term, and just pay more each month as detailed above.

Tip #3: Switch to bi-weekly payments

This is a great option when your pay schedule is also bi-weekly. By making this simple change in when you pay your mortgage, you end up making a 13th mortgage payment during each calendar year. This change alone can chop off almost 6 years from a 30-year mortgage.