How to Pay Off Your Santa Cruz Real Estate Mortgage Early

Posted by Lauren Spencer on Wednesday, January 27th, 2010 at 8:17am.

Few things sound better than paying off a thirty-year Santa Cruz real estate mortgage early.  Not only will you be free of mortgage payments, you could also save thousands of dollars in interest payments over the life of the loan.  Here are four ideas to help you pay off your mortgage early:

1. Apply any windfall monies you receive to your mortgage balance.  Be sure to indicate that this is an extra payment and should be applied exclusively to your principle. 

2. Make bi-weekly mortgage payments.  Making exactly one-half payment every two weeks will add up to a total of twenty-six half payments per year.  Or, thirteen whole payments each year instead of twelve.  That’s the secret to paying off a Santa Cruz real estate mortgage early with bi-weekly payments.  The interest rate itself isn't reduced, but the amount of money you pay in interest on the principal is. 

3. Overpay a fixed amount every month.  By sending in an extra fixed amount as an additional principal payment every month, you'll reduce the length of time it takes you to pay off your mortgage. By sending in a fixed amount every month, you can easily automate this process.

4. Use a pre-payment calculator to figure out other ways to pay your mortgage off early.  The free pre-payment calculators available on the internet can also help you determine how quickly you can become mortgage free.

Before implementing any of these methods to pay off your Santa Cruz real estate mortgage early, contact your mortgage lender to find out if you'll be incurring any additional fees.  It's also a good idea to ask your mortgage lender if there are any specific instructions you need to follow to be sure your payments are processed correctly.

Thinking about buying a home that you can pay off quickly?  Call me now at 831.662.6522 or email me at for more information.



Bi-weekly mortgage payments

Overpay a fixed amount

pre-payment calculator

About Lauren Spencer

Award-Winning Santa Cruz REALTOR®

Lauren Spencer is your local real estate expert, specializing in Santa Cruz real estate and surrounding communities—this is where she lives, works, and plays too. Let her know your questions about the community and county and she'll be happy to fill you in on all you want to know! Lauren Spencer has consistently been voted best local REALTOR in Santa Cruz and is always happy to offer her advice and expertise. Call her at: 800.226.4717.

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