How to Pay Off a 30-Year Mortgage in 15 Years
Shave 15 years off your home loan and save over $100,000 in interest charges. Learn simple principal prepayment strategies you can start today.
A standard 30-year fixed-rate mortgage is the most common home loan, but it carries a major drawback: over three decades, you will pay hundreds of thousands of dollars in compounding interest to the bank. Fortunately, you don't have to wait 30 years to own your home free and clear. Shaving your timeline in half is entirely achievable.
1. Make Extra Monthly Principal Payments
The simplest way to pay off a mortgage early is to add a fixed amount of extra cash to your principal payment every month. Because 100% of this extra payment goes directly to reducing your principal balance, it decreases the balance upon which subsequent interest is calculated, triggering compound savings.
2. The Bi-Weekly Payment Strategy
Instead of making one monthly payment, pay half of your regular payment every two weeks. Since there are 52 weeks in a year, you will make 26 half-payments, which equals 13 full payments instead of 12. This simple schedule adjustment slices 4 to 5 years off a 30-year mortgage.
3. Make One Extra Payment Every Year
If you receive an annual bonus or tax refund, you can allocate those funds as a one-time lump-sum prepayment each year. Making just one extra payment annually has a massive impact when started early in the mortgage cycle.
Use our interactive Mortgage Payoff Calculator or the Mortgage Extra Principal Calculator to calculate your new payoff timeline and total interest savings.