This 'Barbie' Star Paid Off Her Mom's Mortgage. Here's How People Like You Can Pay Off Their Mortgage Faster

Everywhere you go, you're probably seeing a lot of Barbie content. Since opening, Greta Gerwig's popular movie has generated nearly $775 million globally so far. Margot Robbie is one of the producers of the film and stars as the lead character.

Margot has been a household name for a while but wasn't always a big-name star. The actress recently shared in an interview that she paid off her mother's home loan after becoming a successful actress. Here's how everyday people like you can pay off their mortgages faster.

Margo Robbie paid off her mother's mortgage

In December 2022, Margot was interviewed by correspondent Tracy Smith for the CBS Sunday Morning show. The actress discussed how her mother helped fund her early acting endeavors by borrowing money against their home loan.

Margot kept a careful record of the money she borrowed. When she made enough money, she paid the remaining mortgage balance off as a thank you to her mother for supporting her as she built her career. She noted that anyone in her position would have done the same thing.

How to pay down your home loan faster

While most of us can't afford to pay an entire mortgage off at once, there are ways to pay down your home loan faster. By making extra payments toward the principal of your mortgage, you can save yourself money on interest and get clear of the debt sooner. No longer having a mortgage payment to worry about could allow you to tackle other financial goals.

Be sure to inform your lender that you want the extra payments applied to the loan principal, not interest. If you don't do that, your lender may apply the extra payment toward future payments instead.

Below are two strategies you may want to consider when making extra payments on your loan.

Pay extra every month

Making extra payments each month is an excellent way to get ahead on your loan. It may feel more manageable to do this because twelve small additional payments add up over a year, and it can make a big difference when considering the money saved on interest costs.

If you have a $350,000 30-year, fixed-rate home loan with a 6.5% interest rate and make an additional $100 payment toward the principal each month, you'll shave three years and six months off your loan's timeline. You'll also save more than $62,000 in interest with this strategy.

Make one additional mortgage payment yearly

Another strategy to consider is to make one extra mortgage payment per year. It may feel easier to do this during a time of year when you have extra money coming your way -- for example, a three-paycheck month or when you get a bonus at work.

If you have a $350,000 30-year, fixed-rate home loan with a 6.5% interest rate, and you make an additional $2,500 payment toward the principal once a year, you'll shave off six years and two months and save over $107,000 in interest.

Extra payments make a big difference

Any money saved on interest fees can be a benefit to your personal finances. If you can afford to pay extra toward the principal of your home loan, you may want to start doing so. You can use an extra mortgage payment calculator to determine how much time and money you'll save.

But if you have high-interest debt, like credit card debt -- it's best to eliminate this debt first. You'll save more money in interest by tackling high-interest debt first. If you're considering becoming a homeowner, check out our list of the best mortgage lenders to learn more.