Dave Ramsey's 5 Ways to Pay Down Your Mortgage More Quickly

Many people treat a mortgage as something they simply carry for decades without much thought. Dave Ramsey takes a different view. He has helped thousands of people get out of debt, and his core message is straightforward: the less you owe, the more freedom you have for what matters most.

Although many financial experts focus first on credit cards and personal loans, Ramsey also puts the mortgage on the list. Paying it off ahead of schedule can be a major financial win, and you do not need a large windfall to begin.

Here are five of his methods for reducing a home loan faster.

1. Send Extra Money Toward Principal

One of the fastest ways to shorten a mortgage is by making extra payments toward the principal, according to Ramsey Solutions. You can add a small amount each month or make a larger lump-sum payment when you can. Just be sure your lender applies the extra funds to principal rather than interest.

Every dollar that cuts down the principal is a dollar you will not owe interest on for the rest of the loan. Even small monthly additions can reduce the payoff period by years.

2. Move to Bi-Weekly Payments

Most borrowers pay their mortgage once a month. Switching to every-other-week payments can increase what you contribute over the course of a year, often without much noticeable strain on your budget.

Normally, that means 12 monthly payments each year. With bi-weekly payments, you make 26 half-payments annually, which adds up to 13 full payments, or one extra payment per year.

For example, if your monthly payment is $2,000, you would send $1,000 every two weeks instead of one $2,000 payment each month. That extra annual payment can save thousands in interest and trim years from the loan.

3. Free Up More Space in Your Budget

Ramsey also recommends reviewing your budget closely. Are you spending on things that do not add much value? That can include subscriptions, dining out, entertainment, and other optional expenses.

If so, cutting those costs and redirecting the money to debt can make a real difference. Even modest savings can add up over time if you want to pay off your mortgage sooner.

4. Refinance Into a 15-Year Loan, or Pay It Like One

Ramsey often suggests a 15-year mortgage because it reduces the total interest paid over the life of the loan.

If refinancing from a 30-year mortgage to a 15-year mortgage does not make sense, you can still make your payments as if you already had a 15-year loan. The extra amount can go directly toward principal.

5. Put Windfalls Toward the Mortgage

It can be tempting to spend extra money as soon as it arrives. Whether the money comes from a raise, a bonus, or another source, a financial windfall can be a good chance to make progress if you avoid lifestyle inflation.

Rather than spending heavily on something like a new car, direct most of that extra cash to the mortgage principal. The advantage of this approach is that it usually does not require major changes to the budget you already follow.

The Bottom Line

You do not have to use every strategy at once. Start with the one that best fits your budget, whether that means sending a bonus straight to principal or adding an extra $50 each month. As the balance falls, finding the next dollar often becomes easier.