Yes. Pay your mortgage in a very short time. As little as 10 years or less, with the money you have on hand. Scratching your head? How is this possible? Forget everything you learned about being a homeowner.
No one is a “Homeowner” if there is $0.01 still owed to the lender. Everyone is renting their home in the pursuit of a good rate. But if rate is the best part of buying a home, why are so few people actually paying off their mortgage? Do you know someone who had a great rate and paid off the mortgage while they are still young enough to appreciate the achievement?
What is the secret? Getting a mortgage with the longest term (e.g., 30 years) to get the lowest monthly payments. Then, focus on paying all the money you can to the principal. You did not borrow interest from the lender. Interest is a penalty for having a principal. If you got a windfall the day after you closed on your contract, you will only owe one day of interest if you went right back to pay the mortgage in full. Don’t you contractually owe 2/3 interest on the documents you signed? Why wouldn’t you still owe that large interest?
If you took a 15- to 20-year mortgage you will pay a hefty monthly payment. But if you have a 30-year mortgage, the difference in payment between 15- (or 20-) and 30-year principal/interest payments can go toward rapidly paying down your mortgage. Think about the second scenario, the only money you are working with is the extra money you would have been voluntarily giving to the lender, when you could knock significant years off your principal. This is not even taking into account that if you ask for a bi-weekly payment, you will also immediately take an additional 7 years off your mortgage. Yes. It is as simple as it sounds. You need to educate yourself. Debt is stress.
Attack your principal with all the money you have. Lunch money. Bonus. Tax refund. A dollar you found on the street. This requires you use a simple payment schedule to verify that any extra money you paid to the lender is applied in the month you paid it. This part is very important, because this course the interest to be recalculated before the next month’s payment can be collected.
We have created the simplest schedule you can use to make sure that your mortgage will be paid in record time; but most important that you can verify that your mortgage is being paid the way you intended.
We are here to support you. Don’t be afraid to win.
