Hill Mortgage

Bringing Dreams to Reality

How to Pay Off Your Mortgage 10 Years Early Without Extra Payments

by

If you’re like most homeowners, the idea of paying off your mortgage early sounds amazing—more freedom, fewer monthly expenses, and peace of mind. But what if you could shave 10 years off your mortgage without making extra payments each month? Sounds too good to be true? It’s not! There are smart strategies that don’t require more money out of pocket, just a little planning and a fresh approach.

As a mortgage originator, I have helped many clients explore options that save them time and interest. Here’s how you can, too.

  1. Refinance to a Shorter Term:
    One of the most effective ways to pay off your mortgage faster without technically making extra payments is to refinance into a shorter loan term. For example, switching from a 30-year loan to a 20- or 15-year term automatically shortens the repayment period. Your monthly payment might go up slightly, but you’ll save thousands in interest and be mortgage-free much sooner.
  2. Biweekly Payments (Without Paying Extra):
    Here’s a simple trick: set up biweekly payments instead of monthly. You make half your monthly payment every two weeks. Since there are 52 weeks in a year, you end up making 26 half-payments, or 13 full payments, instead of 12. That one extra payment each year can cut several years off your loan term, without you needing to budget for more money each month.
    Many lenders allow you to set this up automatically, so it runs in the background with no extra effort on your part.
  3. Recast Your Mortgage:
    A mortgage recast allows you to re-amortize your loan after making a lump-sum payment. While this option does require one larger payment up front, it won’t increase your monthly payments like refinancing might. Instead, it lowers them, and you continue paying your original amount. The extra you are paying above the required minimum helps shorten the loan, even though you are not technically increasing monthly payments.
    Ask your lender if recasting is an option with your loan type—it is available for many conventional loans.
  4. Use Windfalls Wisely:
    Tax refunds, bonuses, and gifts can be powerful tools. Instead of adding more to your monthly budget, apply these lump sums toward your principal. You will not feel it in your everyday cash flow, but it can significantly reduce the interest and length of your loan.
  5. Review Your Loan Regularly:
    Stay in control by reviewing your mortgage annually. Check your loan balance, interest rate, and remaining term. If interest rates drop, refinancing may become a better option. Or if your financial situation changes, you might be ready for more aggressive payoff tactics.

Paying off your mortgage 10 years early does not have to mean giving up your lifestyle or straining your wallet. With smart moves like biweekly payments, recasting, or refinancing to a shorter term, you can save thousands and gain financial freedom sooner than you thought.

Will Multiple Mortgage Applications Hurt Your Credit Score?

by

When you are ready to buy a home, it is natural to shop around for the best mortgage rate and terms. But you may have heard that submitting multiple loan applications can damage your credit score and throw a wrench in your homebuying plans. Here is the truth behind hard inquiries, rate shopping, and how to protect your credit while securing the best deal.

Understanding Hard Inquiries vs. Soft Inquiries
Whenever a lender runs your credit, whether for a credit card, auto loan, or mortgage, they generate a hard inquiry on your report. Hard inquiries can lower your score by a few points and typically stay on your report for up to 12 months, but they fade after about two years. Alternatively, if you check your own credit or prequalify through some websites that promote no affect to your credit score, it will generate a soft inquiry and will not affect your score.

Rate Shopping Grace Periods
Credit scoring models from FICO and VantageScore recognize that savvy borrowers comparison-shop for the same type of loan. To prevent penalizing you for smart shopping, they group multiple mortgage (and auto) inquiries within a short window, usually 14 to 45 days, and will count them as a single inquiry. This means you can apply to several lenders within a couple of weeks without a significant hit.

  • FICO: 14-day window for newer models; 45 days for older versions.
  • VantageScore: 14-day window across all versions.

How Much Will Your Score Drop?
You can expect a single hard inquiry to typically cost you 5–10 points on a FICO score. If you keep all your mortgage applications within the allowed window, they will count as one inquiry and only incur that initial drop. If you miss the 14-day window applying for several loans over a 2-month period, you can expect it to trigger multiple inquiry hits, intensifying the effect.

Keep in mind that there are other factors that will play into this like credit utilization, payment history, length of credit history, and more that will carry more weight than a handful of inquiries. If your overall credit profile is strong, a temporary 5–10 point drop will not usually affect the outcome of the loan.

Best Practices for Mortgage Shoppers

  1. PreQualify First: Work with a mortgage professional that uses soft pull prequalification tools to see your likely rates without affecting your score.
  2. Apply Quickly: Have a plan in place to aggressively shop within a two-week span to bundle inquiries into one.
  3. Check Your Credit: Review your credit report before applying to correct any errors (e.g., misreported late payments, incorrect balances, accounts that you do not recognize, etc.).
  4. Mind Your Other Credit: Avoid opening new credit cards or taking out auto loans during this window; they generate hard pulls too. It’s best to refrain from any purchases during the approval process.
  5. Lock in Your Rate: Once you find a competitive offer, lock your rate to avoid having to re-apply and ensure your hard inquiry clock stops.

Multiple mortgage applications will hurt your credit if they are spread out over too long a period. By focusing your shopping within the 14-day window, you will only face a single, minor score dip. Pair smart timing with a strong credit profile, and you can secure the best mortgage deal without sacrificing your score.

What’s Ahead For Mortgage Rates This Week – June 2nd, 2025

by

The PCE Index release—the Federal Reserve’s preferred inflation indicator—has shown favorable results. However, the overwhelming sentiment remains one of uncertainty due to the ongoing trade wars. With these conflicts still in full swing, inflation is expected to rise in the near future at a faster-than-anticipated pace. Following the recent trade truce with China, consumer sentiment has improved, though the long-term impact remains uncertain. As expected, consumer spending has declined noticeably, as the tariffs have led to short-term price increases.

PCE Index
The cost of living barely rose in April — and the rate of inflation slowed even closer to prepandemic levels — but it’s unclear whether the recent progress can be sustained as the trade wars drag on. The back-to-back monthly inflation readings were the softest since the pandemic in 2020. The 12-month rate of inflation, meanwhile, slowed to 2.1% from 2.3% and also matched the lowest level since the pandemic.

Consumer Sentiment
A survey of consumer sentiment improved in late May on some signs that the tariff war with China might not be as damaging for the economy as feared. The second of two readings of the consumer sentiment survey rose to 52.2 from 50.8 in early May, the University of Michigan said Friday. That matches the sentiment level in April.

Consumer Spending
Americans became more cautious spenders in April after the Trump administration jacked up U.S. tariffs and the stock market plunged. Now the big question is what they will do next as the trade wars die down. Personal spending rose a modest 0.2% last month, the government said Friday, matching the forecast of economists polled by The Wall Street Journal.

Primary Mortgage Market Survey Index

• 15-Yr FRM rates saw an increase of 0.02% for this week, with the current rate at 6.03%
• 30-Yr FRM rates saw an increase of 0.03% for this week, with the current rate at 6.89%

MND Rate Index

• 30-Yr FHA rates saw a decrease of -0.08% for this week. Current rates at 6.45%
• 30-Yr VA rates saw a decrease of -0.07% for this week. Current rates at 6.47%

Jobless Claims

Initial Claims were reported to be 240,000 compared to the expected claims of 230,000. The prior week landed at 223,000.

What’s Ahead

A strong release week is upcoming with expected manufacturing reports from ISM, S&P Global Manufacturing to denote where producers stand. Following that is the Beige Book and Non-farm Payrolls. This will help indicate the direction of inflation and response to the tariff policies.

NMLS# 309812/1795430/1636790 CA DRE# 01332532/01520243

Licensed by the CA Department of Real Estate

Equal Housing Opp

Our Location


350 Main Street, Ste H
Pleasanton, CA