How to Pay Off Early If I Owe Too Much on My Mortgage?

Buying a house is one of the most expensive purchases you’ll make, considering a middle-class household. Many homeowners dream of the day they no longer have to pay the monthly payments. So you might be thinking, if I owe too much on my mortgage, can I clear it early?

Today we will be discussing things you should consider before putting all your savings to pay off the lender.

Can You Pay Off a Mortgage Early?

Paying a big loan early can save you a lot of money that could have gone into interest. You won’t have to worry about a chunk of your income going every month into a mortgage.

A mortgage payment is split between principal and interest. At the beginning of a loan term, a large part of that payment is applied to interest. As time passes, more of it goes into settling down the principal. It is known as amortization, which enables the lender to get a bigger portion of their money in the initial years of repayment. To pay off your mortgage early, employ extra payments to the principal.

What are its benefits and pitfalls?


  • Saving money on interest
  • Saving money for the next thing in life.


  • Taking money from higher-interest debt to pay off a mortgage early can impact your financial stability.
  • Losing out on higher returns from other investments.

Property Solutions Group experts recommend looking at your emergency savings, financial goals, and retirement savings before making any decision.

How can you pay off your mortgage faster?

Budget for it

The key is paying more than the monthly amount due. Use a mortgage calculator to help you understand how much you need to send in every month to pay off your mortgage early.

For this extra cash to come out, you need to budget! See what costs you can cut down to meet the decided goal. Don’t spend savings or take out money from higher-interest loans.

Plan Extra Payments

What if you can’t pay extra every month? Reach out to your lender and plan when an extra payment will make the most impact on your situation.


Borrowers can opt to refinance their loan to a shorter term. You might have guessed, small repayment window means higher monthly payments.

Mortgage Recasting

You can make one large payment toward your principal balance, i.e., $5,000. The lender then amortizes the loan amount to show the new balance. You might have to pay a few hundred dollars as fees, and it won’t apply to all loan types.

What Happens after paying off a Mortgage?

After you have paid all the money to the lender, the bank won’t have a lien on your house. You will have a statement proof of mortgage repayment in full, as well as a canceled promissory note.

The lender could also inform the city or county recorder that you are the official owner of the property. Otherwise, you will have to do this yourself. From here on, you will have to handle property tax and homeowner’s insurance.

  1. We discussed how to pay off home loans early, but what happens if you are facing foreclosure or short sale? It can impact your credit score drastically. You can always sell the house quickly on your own to pay off the mortgage.

Property Solutions Group can help you! All you have to do is fill our application form on the website with property details and photographs. Our professionals will contact you within 24 hours. Connect with us here!

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