10 Steps to Paying Off Your Mortgage in 10 Years

Many homebuyers take out a mortgage and spend the bulk of their lives paying it off. And while there's nothing wrong with that, you should know that the sooner you pay off your home, the less money you'll spend on mortgage interest. In fact, if you play your cards right, you may even manage to knock out your mortgage in 10 years. Here's how.

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If you don't want your mortgage payments to drag on for years, make sure to take out a reasonably low mortgage from the start. Instead of buying a home at the top of your budget, find one that will have mortgage payments you can swing with ease.

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Keeping really good track of your money will make it easier to pay off your home ahead of schedule. Set up a budget that maps out your ongoing expenses and allows you to free up extra cash for your mortgage.

The less money you spend in general, the more you'll have on hand to pay off your home. That means driving a modest car, taking less indulgent vacations, and generally being frugal in your lifestyle.

Steadily putting more money into your mortgage each month is a good way to pay it off sooner. If you're able to save $800 a month by living below your means, you might consider putting $400 a month into your mortgage off the bat.

ALSO READ: 4 Tasks to Check Off Your To-Do List Before Applying for a Mortgage

Most people pay their mortgages once a month. But if you divide your monthly payment in two and pay it every two weeks, you'll end up making the equivalent of an extra monthly payment each year. That, in turn, will help you shed that loan sooner.

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You may come into extra money during the year, like a tax refund or bonus at work. Putting that cash into your mortgage could help you pay it off quickly. That said, you may want to reserve some of your extra cash for other purposes, like funding your retirement savings or meeting other goals you might have.

The more money you're able to earn, the more you'll be able to put into your mortgage. Consider picking up a side gig to boost your earnings, whether it's driving for a ride-hailing service or doing data entry work from home.

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Refinancing your mortgage can make it even less expensive to pay off. These days, refinance rates are very competitive, and if you lower your mortgage's interest rate, you'll have an easier time whittling down your balance within a decade.

Using your home as a source of cash will help you pay down your mortgage sooner. If your local zoning laws allow for it, consider converting part of your home to a separate apartment and finding a tenant who will pay you rent.

The less interest you pay on other debts, the more money you'll have to pump into your mortgage. Be sure to steer clear of credit card balances, because those could eat up a lot of your income.

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Mortgage debt is considered the healthy type to have because it lets you build equity in an asset that can grow in value over time, the same way a stock portfolio can gain value. But there's also something to be said for not having monthly mortgage payments hanging over your head, so if you're able to pay off your home in 10 years, you'll enjoy a world of financial freedom once you hit that goal.

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