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Most homeowners would love to pay off their mortgage early, thus eliminating their largest debt and monthly expense.

However, many financial advisors say that you must be free of significant debt and have money in savings to start paying off your mortgage.  Rather than paying off your mortgage, you could try a few other routes with your extra money.  By not paying off your mortgage, you may get tax benefits.  Or you could invest the money and earn more money than you would save on interest by paying off the mortgage early.  Or you could put your extra money towards home improvement to increase your home’s value.

If you are in a debt-free position, it can be very rewarding to pay off your mortgage and live debt-free.   Naturally, you may want to consult your lender, but if you’re paying down your mortgage alone, use a mortgage calculator and a spreadsheet to keep track of your payments.  You may want to choose bi-weekly payments.  Or you can take your money from bonuses and make lump sum payments.  Another idea is to refinance your loan for a lower monthly payment, or refinance your 30-year mortgage to a 15-year mortgage. For some help, here’s how a UK couple paid off their mortgage in 1.5 years.  They have great tips on how cut costs to apply to the mortgage payment.

If you have debt, or just want some help paying off your mortgage, it’s wise to consult with a financial expert.  You can use a HELOC or type of home equity loan to consolidate your debts and achieve an early mortgage payoff with little adjustment to your regular lifestyle.  This type of program also helps you be more disciplined, which many people need to complete their dream of living debt-free.  It also gives you more financial flexibility and cushion room, so you have money for emergencies if you  need it.

Talk with your lender and a financial consultant to determine what is the best option for you to achieve an early mortgage payoff.