Ways to Pay Off your Mortgage Sooner

Principal payments

Making payments to your principal amount is a helpful way to pay off your mortgage earlier. If you’d like to make a payment with additional principal and/or escrow, you may:

• Pay an amount under $10,000 (excluding the monthly payment owed) 
• Pay an amount of $10,000 or more using certified funds 

Keep in mind, if your account is past due, you must become current before any funds can be allocated to additional principal or escrow. But once you’re ready, you can make payments online or with a check. 

For online payments, sign into your account at myloan.servicedbycarrington.com, navigate to the “Payment” tab on the left, and select “Only Additional Principal and Escrow.” From there, you can determine how much you’d like to contribute to your principal and/or escrow. 

For check payments, simply include the message “For additional principal” in the memo line. This way, we’ll know where to allocate your funds (if you’d like, the memo can also include escrow). Once you’re finished, just determine the correct mailing address to send your check. 

Refinance

You might be able to get lower monthly payments by refinancing your loan. For more information on your next moves, check out the information we have to boost your mortgage IQ!

Rounding up

Another helpful way to make incremental reductions to your mortgage is by rounding up on your payments to the next $100 amount. If your payment due is $823, instead pay $900. Try making your monthly payments this way, and, after a year, determine whether the benefit of these rounded payments is worth extending.

Unexpected income

Outside of your monthly budget, any sources of unexpected income can be contributed to your mortgage. Think about items such as tax returns, job bonuses, or even money you have saved for a rainy day. All of these options are at your disposal, and won't cut into your regular finances.