Making timely mortgage payments helps you build equity in your home and can boost your credit score, preventing you from falling behind on your loan. Many lenders provide various options for payment, including online and phone payments.

How to pay a mortgage

Your mortgage payments are typically due monthly, but you can opt to pay more frequently if you prefer. To stay organized, it’s crucial to choose the payment method that suits you best. Here are five options for paying your mortgage and what to consider for each one.

1. Pay your mortgage online

For most homeowners, the simplest way to pay their mortgage is through their lender or loan servicer’s website. Online payments are quick, free, and efficient, allowing you to choose when to make your payment. This method also helps you keep a record of your transactions and ensures timely payments by the due date. Additionally, some lenders offer free mobile apps, enabling you to manage your account and pay your mortgage directly from your phone.

2. Pay your mortgage with automated withdrawals

Setting up automated withdrawals from your checking or savings account is another convenient way to ensure your mortgage is paid on time each month. This arrangement allows your lender to automatically deduct your mortgage payment on a designated day each month.

“Automatic payments via ACH withdrawal are the easiest way to handle monthly mortgage payments,” says McBride. “They occur without any action required from the homeowner, even while on vacation. The only drawback is the need to maintain sufficient funds in your account to avoid overdrafts.”

Additionally, automated withdrawals can be beneficial for homeowners looking to make extra or biweekly payments, which can help pay off the mortgage sooner and reduce the total interest paid over the loan’s term.

3. Pay your mortgage using a credit card

Using a credit card to make mortgage payments can be appealing, especially if your card provides attractive rewards or cash back. However, many mortgage lenders do not support this method.

“Most lenders don’t accept credit card payments for mortgages, and those that do often charge a service fee that negates any rewards you might earn,” explains McBride.

4. Pay your mortgage by phone

Making your mortgage payment over the phone is another option, especially if you missed mailing your payment by the due date or haven’t set up online payments.

You can locate the phone number on your monthly statement or on the lender’s website. Before calling, have your mortgage account number and banking details, including your routing and account numbers, ready.

Payments made by phone are usually processed quickly. However, be sure to check with your servicer about any fees associated with this payment method.

5. Pay your mortgage in person or by mail

If your mortgage servicer is local, you may have the option to make payments in person using a check or money order. Money orders are secure since they don’t contain personal information, but they typically have a limit of $700 to $1,000.

Alternatively, you can use a certified check or cashier’s check, which have no limits.

When mailing a check, be sure to include your mortgage account number, as just providing your home address may not be enough, even if it matches what’s on file with your servicer.

Keep in mind that mailing your payment requires you to account for the time it takes for the payment to arrive and be processed by the servicer.

How to pay off your mortgage faster

Paying off your mortgage faster can lead to significant interest savings over the life of your loan. However, it’s important to consider your financial situation; for example, if you have high-interest debt, it may be wiser to prioritize paying that off first.

To accelerate your mortgage payoff, focus on reducing your principal balance. Here are several strategies:

  • Make Bi-weekly Payments: By opting for biweekly payments, you’ll effectively make 13 monthly payments in a year instead of 12, helping to reduce your loan term and interest costs.
  • Pay Every Four Weeks: Paying every four weeks rather than monthly results in approximately one extra payment each year, which can add up significantly over time.
  • Add Extra to Monthly Payments: If you have some additional funds available each month, consider applying that extra amount to your mortgage payment to reduce the principal faster.
  • Make Lump Sum Payments: If you receive a windfall, like a bonus or inheritance, you can apply that directly to your mortgage balance. This may trigger a mortgage recast, which can lower your monthly payment.

Ensure that your mortgage servicer applies any extra payments to the principal, and check your mortgage agreement for any potential early payment fees.

What if I’m late making a payment?

If you anticipate being late on a mortgage payment, contact your mortgage servicer as soon as possible. Explain your circumstances and inquire if they can waive any late fees. Proactive communication can be very helpful.

Most lenders typically allow a grace period for late payments, often around 15 days.

If you expect to miss several months of payments, consider requesting forbearance from your servicer. Forbearance allows your servicer to temporarily reduce or suspend your mortgage payments for a specified period. If your financial challenges are permanent, discuss other relief options, such as a loan modification. Many servicers are willing to collaborate with borrowers to help them stay on track with their mortgage payments.