| We paid off our mortgage early thanks to these 3 strategies

Three strategies that can help homeowners pay off their mortgages early.

Using Bankrate’s calculator, let’s say you have a 30-year fixed-rate mortgage for $400,000, with an interest rate of 6 percent. If you make your regular payments, your monthly mortgage principal and interest payment will be $2,398.20 for the life of the loan, a total of $863,354.

But if you’re not doing the math, refinancing can increase your overall interest costs, even if you have a lower monthly payment. This is especially true if you’re several years into your mortgage and a lot more of your payment is already going toward the principal.My husband and I also never used a refinance to tap our home’s equity. We didn’t want to use home as an ATM.We refinanced a few times to lower our interest rate when the difference was at least two percentage points.

When mortgage rates dipped below 3 percent in 2016, we refinanced from a 30-year fixed rate loan to a 15-year fixed term, accelerating our payoff plan.With a mortgage recast, you make a lump-sum payment toward the principal. Your mortgage is then recalculated based on the new, lower outstanding balance.Your remaining monthly payments reflect the new amortization schedule. However, the interest rate and loan terms stay the same.

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