Owning a home is one of the biggest investments you’ll ever make, and building equity is a smart way to grow your wealth over time. But what if you could speed things up?

By taking a few strategic steps, you can pay off your mortgage sooner and build equity faster—putting you in a stronger financial position for the future.

Here’s how to get ahead on your mortgage without sacrificing your financial stability.

What Is Home Equity?

Before we dive in, let’s talk about what equity actually is.

Home equity is the portion of your home you truly own. It’s calculated as the difference between your home’s market value and what you owe on your mortgage.

For example, if your home is worth $500,000 and you owe $350,000 on your mortgage, your equity is $150,000.

The more equity you build, the closer you are to owning your home outright—and the more financial flexibility you’ll have.

1. Make Bi-Weekly Payments

Switching from monthly to bi-weekly payments is one of the easiest ways to build equity faster. Instead of making 12 payments a year, you’ll make 26 half-payments—equivalent to 13 full payments annually.

That extra payment might not sound like much, but over time, it can significantly reduce your mortgage balance and the interest you pay.

“It’s a small change that can shave years off your mortgage.”

How to Do It:

Contact your lender to set up bi-weekly payments. Make sure the extra payment is applied directly to your principal, not future interest.

2. Put Lump-Sum Payments Toward Your Principal

If you come into extra money—like a tax refund, bonus, or inheritance—consider using it to make a lump-sum payment on your mortgage.

Lump-sum payments go directly toward your principal, reducing the amount of interest you’ll pay over the life of the loan. Even a small one-time payment can make a big difference.

For example, putting $5,000 toward your principal on a $400,000 mortgage could save you thousands in interest.

How to Do It:

Check your mortgage terms for prepayment privileges. Some lenders allow lump-sum payments up to a certain percentage of your loan amount each year without penalties. Plan to make lump-sum contributions whenever you can, even if it’s just a few hundred dollars.

3. Increase Your Regular Payments

Many lenders allow you to increase your regular mortgage payments by a certain percentage without penalties. Even boosting your payments by an extra $50 or $100 per month can help you pay off your mortgage faster.

For example, if you’re paying $1,800 per month and increase it to $1,900, that extra $100 will go directly toward your principal. Over time, this adds up.

How to Do It:

Contact your lender to see how much you can increase your payments. Start small and gradually increase as your financial situation improves.

4. Refinance to a Shorter Term

If you’re financially stable and want to pay off your mortgage even faster, consider refinancing to a shorter term.

For example, switching from a 25-year mortgage to a 15-year term will significantly increase your monthly payments, but you’ll pay less interest overall and build equity much faster.

“A shorter term means less interest and more ownership.”

What to Consider:

Make sure your budget can handle the higher payments comfortably. Work with a mortgage broker (like me!) to find the best refinancing options for your situation.

5. Avoid Skipping Payments or Extending Your Term

Life happens, and it can be tempting to skip a payment or extend your mortgage term to reduce monthly costs. But doing so can slow down your equity-building progress and cost you more in the long run.

Every skipped payment adds to your interest costs and pushes back your payoff date.

How to Avoid It:

Build an emergency fund to cover unexpected expenses, so you don’t have to rely on skipping payments. Stick to your original payment schedule whenever possible.

6. Shop Around for a Lower Interest Rate

Lowering your interest rate through refinancing or renegotiating your mortgage can save you thousands—and help you pay off your loan faster.

Even a small decrease in your rate (e.g., from 5% to 4%) can make a huge difference in your monthly payments and how much goes toward your principal.

How to Do It:

Keep an eye on interest rates and consider refinancing when rates drop. Compare options with the help of a mortgage broker to ensure you’re getting the best deal.

Final Thoughts

Building equity faster isn’t about making huge sacrifices—it’s about making smart, strategic choices that align with your financial goals.

Whether it’s switching to bi-weekly payments, putting extra cash toward your principal, or refinancing to a shorter term, there are plenty of ways to get ahead on your mortgage. The key is consistency and planning.

If you’re ready to explore your options or want personalized advice, let’s chat. I’m here to help you make the most of your mortgage and build equity faster.

Ready to take control of your mortgage and get closer to full homeownership? Reach out today, and let’s create a plan to make it happen.