How to Pay Off Your Mortgage in as Quick as 5 Years
It’s a given that for most people a house is the BIGGEST PURCHASE they will ever make. Which also means that it will be the LONGEST PAYMENTS they will ever have to make.
(If you are looking for a great spreadsheet to crush your mortgage I invite you to sign up for our newsletter and I’ll send you it, plus some other free goodies too.)
Let’s just come out and say it …”Home ownership rocks, but home payments suck.”
While buying a home is a memorable first experience full of pride and excitement, getting to pay for that home over the next 20-30 years is something ..ahem… shall we say less memorable.
The Scary Truth
The sad and scary truth is that a mortgage is the biggest reason why people are stuck in jobs they hate and can’t leave. Getting rid of that burden is something worth speeding up.
It’s about building Financial Freedom
We believe that getting rid of that dreaded monthly payment is a goal worth achieving. Outright owning a home is a huge step towards your financial freedom. Let’s face it you are going to have to live somewhere.
Below are 5 tips we are using to KILL our mortgage quickly. By using all of these methods could pay off your mortgage in as little as 5 years instead of 25.
The 5 Things You Can Do Pay Off The Mortgage Quicker
- Switch to Bi-weekly Payments – This is the same as adding an extra months worth of payments every year. Instead of Bi-monthly (24 payments a year), your mortgage is paid every two weeks, over the course of a year this adds up to 2 extra payments (or 26 payments per year). There you go one extra month of payments.
- One-time Payment – Use any extra money as a one-time payment. Anytime you get a bonus or have extra cash it goes onto the principle. Most banks allow for an anniversary payment of up to 15% of the original mortgage amount. Call your bank and see what are the terms of your mortgage.
- Match-a-Payment – Some mortgages over what is called a match-a-payment. Where you can pay double on any payment you have. This is great as the whole amount goes against your principle and not against the interest.
- Shorter Amortization Period – Huh? What’s with the fancy talk? Amortization is a $20 dollar word that means the length of time you are taking to pay something off. Instead of making a payment over 25 years, you could shorten it to 20 years or less if possible. This has the added benefit of saving thousands in interest and being mortgage free years earlier than expected.
- Making Mortgage Free a priority. This is something everyone can do and it costs nothing! Having a debt free mentality will change how you look at everything. Yes you will have to sacrifice, and yes sometimes it will flat out suck at times. But it’s worth it. Most things that are worth having take a little sacrifice. In my opinion that is what makes them worth having.
While trying to do all of these may be down right hard. It’s great to know what payment options you have with your mortgage and the biggest lesson here is that EVERY LITTLE BIT COUNTS!
A few years ago, we decided to focus on becoming mortgage free. A few people thought we were crazy, and outright told us that we should forget about it.
Fast forward to today and now the end is in sight. Those people who thought we were crazy still have over 20 years of mortgage payments left. It’s definitely not for everyone, but I like the way it’s looking for us.
Everyone’s situation and mortgage is different and you should always do what makes sense to you financially. For us, this is what made the most sense.
What are your thoughts? Should you focus on becoming mortgage free or should your money and attention go somewhere else?
If you are looking for a great spreadsheet to crush your mortgage I invite you to sign up for our newsletter and I’ll send you it, plus some other free goodies too.