There are a few easy ways to make extra principal payments that can save you a ton of money in interest expenses and get you mortgage-free sooner than you thought possible. Here are a few simple strategies you can use:

1. Round Your Monthly Payment Up

The results of this simple strategy can save you a fortune and drastically reduce the length of your mortgage.

For example, if your monthly mortgage payment is $734, rounding it up to $800 per month could save you over $48,000 in interest and reduce your mortgage term by 7.5 years!

2. Make One-Time Pre-Payments Using Your Income Tax Refund

This is an easy way to save money and shorten your mortgage. If you have a $100,000 mortgage and apply a $1,000 tax refund as a one-time prepayment, it could save you more than $8,600 and cut 1 year and 1 month off your mortgage!

3. Choose a 15-Year Mortgage

If you can afford it, a 15-year mortgage can drastically reduce your total interest paid. With a $100,000 mortgage at 8% interest over 15 years, your monthly payment might be about $200 more—but you’d save a massive $92,083 in interest compared to a 30-year loan!

Using these strategies is the easiest way to reduce your interest expenses and shorten your mortgage period.