Refinancing 15 yrs mortgage → Paying it off in 13 yrs!

I refinanced my 30-year mortgage just one year in,

switching it to a 15-year term.

 

One of my favorite financial strategies is

paying off my mortgage as quickly as possible.

 

This time, I opted for a 15-year mortgage,

which is half the length of a typical 30-year mortgage,

but I’m aiming to pay it off even faster.

 

As I’ve emphasized in other posts,

you can also use the power of compound interest to pay off debt faster

and more effectively.

 

Compound interest doesn’t only work to grow your money;

It can also help you reduce debt more quickly!

 

 

 

As of August 31st,

the remaining balance on my refinanced mortgage and the monthly payment are

as follows

 

Loan Amount: $496,000

Interest Rate: 5.865%
Monthly Principal & Interest:   $4,149.44

 

I plan to use an additional $300 each month to pay down the principal.

 

The key here is

to start paying the extra principal right from the beginning of the mortgage.

 

Don’t delay even for a month

—just treat it as if the extra $300 is part of the regular payment, bringing the total to $4,449.44.

 

By finding an extra $300 each month,

which could easily be spent on something else,

and putting it toward the mortgage, you can pay it off a year earlier.

 

That means gaining true financial freedom one year sooner in life

 

 

With a 15-year mortgage, the impact might not seem as significant,

but for a 30-year mortgage, you can really see how much the overall term shortens.

 

You can check exactly how many months or years you can cut off

based on the extra principal payments by visiting this website I often use:

 

https://www.mortgagecalculators.info/calc-additionalpayment.php

Extra Mortgage Payment Calculator - Accelerated Home Loan Payoff Goal