Assessment

• Review the state of your current mortgage. Consider where in the amortization schedule you stand, how much money at the end of the month you have after all bills have been paid, what percentage your mortgage payment is vs. your monthly net income, and your interest rate. Before attempting to pay down your mortgage on your own, exhaust all opportunities to refinance your loan for a lower rate or shorter term -- both of which will reduce your payments.
  
  

How to Pay

• Enroll in biweekly payments. This program pays half of your mortgage payment every two weeks. It accelerates the payoff because you'll end up making 26 half-payments each year -- equating to 13 full mortgage payments. So, without feeling the hurt of additional payments, you'll end up taking a month of payments off your mortgage each year faster than without biweekly payments. Just make sure your lender does not charge extra for this plan -- you can set it up for free at your bank.
  
  

Using Other Resources

• Aside from paying extra payments, you must use outside funding to pay down a mortgage. The best way to do this is to pay your entire tax refund against your principal mortgage balance. For example, if your mortgage payment is $1,000 on a $175,000 mortgage and your tax return is $4,000, you'll be knocking three full mortgage payments off the term of your loan.