How to pay off your mortgage in half the time
With all the talk about escalating gas and grocery prices consumers have had to learn to tighten their belts and budget their money they were not acustomed to being concerned with in the past. Many families have made some tough decisions to deal with the changing economic landscape. When our backs are against the walls it is amazing what we can do. It is amazing what we can do when our backs are against the wall.
I have certain clients that have purchased two homes from me over the past 28 years I have been in the real estate business. What is really interesting about these clients is that they have paid off both homes they purchased from me in 7 years each. When I asked them how they did this they said they simply added an additional $300-400 to each monthly payment and took half of thier income tax return each year and applied it to thier mortgage.
Did you know that if your take a $200,000 mortgage financed at 6 1/2% for 30 years the monthly payment would be $1,264.14. If you apply an additional $450 to each monthly payment you would pay off that same loan in 15 1/2 years. If you added an additional $1,000 to $1,500 each year from your tax returns you would accomplish what my clients did.
You say you don't have an extra $450 per month? I think this is because a lot of homebuyers tend to purchase homes that are more than they need and it is a struggle to make the monthly obligations.
What I am proposing is that everyone lower their sights and buy a more conservative home. It is amazing what our grandparents and parents lived in and made a go of it. It seems like the the attitude of "competing with the Jones' next door" has gotten out of hand over the past 20 plus years. I have seen more couples buy homes that are what they yearn for, rather than being what they need.
With the Idaho Real Estate market being what it is, there are some great buys available that we have not seen in years. My proposal is that you buy one of these great Idaho Short Sales or Idaho Foreclosures and obtain a mortgage that is well within your means of making each month. Do what my clients did and you will be amazed at your accomplishment. Please don't make the mistake of refinancing your home every few years like many do. Simply stick to your plan of paying off your current mortage as quickly as you can.
You will feel great when you make that last mortgage payment and your family will have the security of knowing how much extra money is available each month now that your home is free and clear. This isn't a popular theory with many because we are supposed to be good "consumers" always refinancing our homes and buying the next boat, harley or some other toy. Not only will you feel good about doing this but you are teaching your kids a valuable lesson regarding money management
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