Paying off a mortgage is more than just a financial goal — it brings peace of mind, reduces stress and offers greater flexibility for the future. For homeowners in their 40s and 50s, balancing healthcare costs, retirement savings, children’s education and — for some — even caregiving for elderly parents, can make the idea of paying off a mortgage early seem like an overwhelming task.
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However, with careful planning and discipline, paying off your mortgage sooner than expected is entirely achievable, according to Matthew Dunbar, Senior Vice President of Churchill Mortgage in Florida’s Southeast region.
Dunbar shares how an early mortgage payoff can be within reach with the right approach. Here are his four expert strategies for Gen X homeowners to speed up mortgage repayment and build long-term financial security.
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Review Your Expenses
The first step to paying off your mortgage faster is finding extra cash in your current budget. By reviewing monthly expenses, homeowners can identify areas where they can cut back. Dunbar emphasizes the importance of regular budget assessments, noting that even small changes — like dining out less, canceling unused subscriptions or being smarter with grocery shopping — can free up significant funds. Directing these savings toward your mortgage can make a noticeable difference over time.
“I suggest reviewing your budget quarterly or at least twice a year,” Dunbar advised. “Break your spending into three categories: ‘want to have,’ ‘nice to have,’ and ‘need to have.’ If you’re overspending on ‘want to have’ items, those are perfect areas to cut. Use those savings to pay down your mortgage or work toward other financial goals.”
It’s crucial to consider your budget as a whole, especially when planning for future expenses. Ask yourself whether your current income will cover these costs. If not, make adjustments now to reduce outgoing payments. Since unexpected changes in the stock market or financial disruptions can occur, planning ahead and staying flexible is key.
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Accelerate Mortgage Payoff
One effective way to pay off a mortgage faster is to apply savings from refinancing directly to the principal. When refinancing for a lower interest rate, many homeowners focus on the reduced monthly payment. However, if the original payment was manageable, redirecting the savings toward the principal can speed up the payoff. This simple strategy can shave years off the mortgage and reduce the total interest paid.
“If you’re comfortable with the higher payment, take those savings and apply them to your principal — it’s just simple math to help you get out of debt quicker,” Dunbar explained.
For homeowners paying mortgage insurance due to a smaller down payment, removing that cost can free up even more funds. This can often be achieved by refinancing or having the property reassessed after its value increases. Eliminating mortgage insurance and applying those savings to the principal is another powerful way to accelerate debt reduction. The goal is to reduce the principal as much and as early as possible, which lowers interest payments and shortens the loan term.
Have a Goal
A clear goal for when you want to be debt-free is essential for paying off a mortgage faster. Align this goal with your overall retirement plan. Consider adjusting the loan term to match your payoff target when refinancing for a lower interest rate.
“Have a clear retirement plan, refinance for interest savings, and make sure it aligns with your payoff goal,” Dunbar advised.
For example, if you have 23 years left on your mortgage and can refinance at a significantly lower rate, many homeowners focus on the lower monthly payment. However, a smarter approach is to continue making the same payments as before. By applying the savings from the lower interest rate directly to the principal, you reduce your balance faster and save on interest. This method helps you pay off your mortgage sooner while still benefiting from the refinance.
“Discipline is essential. Many people face financial trouble later in life because they never planned for future expenses. Proper planning and discipline are key to paying off debt faster,” Dunbar added.
Be an Advocate for Yourself
Advocating for yourself can be key to paying off a mortgage faster. Taking the initiative with your mortgage and other financial obligations can prevent unnecessary expenses, freeing up extra cash to reduce your debt and put toward mortgage payments.
“If your property taxes or insurance rates go up, don’t just accept it — reach out and ask why or explore ways to challenge the increase,” said Dunbar. He also suggested regularly comparing prices for services like cable, internet, and insurance. Small efforts add up to big results.
“You’d be surprised how much you can save just by asking questions and switching providers,” Dunbar explained. “Every penny saved is money that can go straight toward paying off your mortgage.”
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This article originally appeared on GOBankingRates.com: I’m a Gen X Finance Expert: 4 Ways To Pay Off Your Mortgage Faster
