Owning a home has always been part of the American dream—but the idea of spending 30 years in debt can be intimidating. While a mortgage isn't as high-interest as credit card debt, it's still a major financial commitment.

What if you could pay it off much faster?
It’s possible—with the right strategy and discipline. Here's how to do it.

Related: Different Types of Mortgages

The Formula to Pay Off Your Mortgage in 5 Years

On paper, it’s simple: make a plan and stick to it. You’ll need to increase your monthly payments or make them more frequently, which may require cutting spending or increasing your income.

Set Your Target Date

Start by setting a specific goal date to be mortgage-free. A five-year goal is great, but even better is having quarterly checkpoints and a halfway milestone to track progress.

Once you have your deadline, calculate how much you'll need to pay each month. You can ask your lender for an amortization schedule to understand how each payment impacts your principal and interest.

Make Larger or More Frequent Payments

Try making an extra mortgage payment each month. If you get paid biweekly, consider making a payment from each paycheck. You could also add a lump sum payment annually with saved funds.

Even small tweaks help—rounding up your payment to the nearest $10 or $100 adds up over time.

Put 20% Down

If you haven’t purchased yet, the smartest thing you can do is put at least 20% down. This helps you avoid mortgage insurance and keeps your loan smaller—making it much easier to pay off quickly.

Related: Can You Buy a House Without Money Down?

Cut Back on Your Spending

man paying using cc

If you want to redirect more money to your mortgage, you'll need to cut monthly expenses. Cancel unused subscriptions, reduce dining out, and pause luxury spending.

Remember, these cuts don’t have to be permanent—once you’re mortgage-free, you can ease back into old habits.

Stick to a Budget

The easiest way to stay on track is to create a budget and stick to it. Budgeting helps you see where your money goes, reduce waste, and prioritize savings.

You might be surprised how quickly small purchases add up.

Boost Your Income

If cutting expenses isn’t realistic, consider finding new income streams. Whether it’s turning a hobby into a side hustle (like selling crafts on Etsy) or offering freelance services in writing, programming, or design—every extra dollar helps.

When You Shouldn’t Pay Off Your Mortgage in 5 Years

Being mortgage-free is appealing, but it’s not always the best financial move. Sometimes, a 7- or 10-year payoff is smarter, depending on your situation.

You Don’t Have Other Savings

As a homeowner, unexpected costs come up all the time. If you don’t have a 6-month emergency fund, prioritize that first before accelerating your mortgage.

pink piggy bank with coins

You Don’t Have Retirement Savings

If you haven’t started funding your retirement, this should come first. The earlier you invest, the more compound interest you gain. In some cases, prioritizing retirement makes more sense than rushing to pay off your mortgage.

You’re Adding to Other Debts

Avoid using credit cards or loans to pay off your mortgage early. The interest rates on other debts are usually higher, and missing other bills to make extra mortgage payments can hurt you financially.

Related: Refinancing With Bad Credit

Did you know that refinancing your mortgage can help lower your interest rate?
Learn more with Mares Mortgage and explore your options today!