Path to Mortgage Free Living:
Tired of writing that mortgage check every month, until you
think you'll need a separate check book just for house
payments? Tired of dealing with rising mortgage rates? You're
not alone. Millions of homeowners feel the same way, and yet
some of them are taking a chunk out of the burden and getting
out from under mortgage payments years, sometimes decades
before their neighbors. How? They make an effort to pay off
their mortgage early and thereby can enjoy mortgage free
living. Just the thought makes many homeowners drool with
Living mortgage free is not a pipe dream. It's a reality that
can, and does, occur with increasing frequency these days.
Why? Because for some, it's their way of sticking it to 'The
Man', while for others, it's the path toward financial freedom
and no stress. Do you have to make a million dollars a year to
attempt to pay off a mortgage early? No, but you do need about
$100-200 extra cash every month so that you can pay extra on
your mortgage payments. While many people think they can't
afford even that, you'd be amazed at how much money you spend
on a monthly basis just going out to eat, or entertaining
Check out the following Tips to help get you started on paying
off that mortgage in less than five years.
Low mortgage rate and interest rate: Make sure you have the
best interest rate you can find. Most home loan mortgage rates
should be offered at between 6-8 percent interest. If you are
higher, refinance. If you're lower, then what are you waiting
for? Take advantage!
Cut Fuel Bills: In winter and summer months, take a bite out
of electric or gas bills by wearing a sweater in the house
instead of bumping that thermostat up. In colder climes, keep
the heat set no lower than 45 degrees however, so that you
don't run the risk of cracked pipes. In summer, try using
floor fans or turning your air conditioning off at night and
opening a window with a fan nearby to move cooler night air.
You'll save hundreds of dollars a month.
Cut Back on Shopping: Yeah, that's a hard one for lots of
people. Still, if you trim the fat from your grocery bill
every month, and make due with fewer desserts, cookies and
other non-essential items, you'll save hundreds of dollars
Spend more time Window Shopping: You don't have to cut out
your trips to the mall every weekend, but you'll need to leave
those credit cards at home. Shop with your eyes, not your
wallet. After all, do you really need that Coach purse, or
those Jimmy Choo shoes, can you make due with the dozen or so
other styles stored in your closet?
Shop For Less: When it is time for new shoes or clothes, stay
away from the designer labels. After all, who's going to
notice the difference if they don't look at the label with a
magnifying glass? And who cares, anyway? Stop competing with
the neighbors and buy generic. After all, you pull pants on
the same way, not matter what name is on the label.
DIY: Whether it's home or car repairs, try fixing things
yourself instead of calling in plumbers, electricians and pool
repair men. Get a book and learn how to fix things yourself.
Who wants to pay a plumber $75 an hour to take the trap off
your sink when you can do it yourself with the use of a $20
Compare Home Owner's Insurance Policies: If you own a home,
you need homeowners insurance. Instead of going with the first
one you find in the phone book or on the Internet, shop around
for better deals, but remember to make sure your basic needs
Your mortgage rates determine what your monthly payments are.
Still, they are just the tip of the iceberg, and just those
items will save most homeowners about $500 a month in
expenses. Keep track of every penny that you spend for a month
or two and you'll be amazed at how much of it is frivolous.
Spend it on mortgage payments instead and get out from under
the mortgage blues.
Following the Path to
Mortgage Free Living:
Paying a monthly mortgage year after year gets old fast, but
most people just go through the motions, thinking there's
nothing they can do about it. However, with a mortgage payment
calculator, you might be able to save some money. The first
part of this article explained that by merely paying extra on
your monthly mortgage payments, you could shorten the life of
your loan by years, if not decades. All it takes is a little
sacrifice, some determination, and knowing that your efforts
will pay off, big time.
There are considerations that need to be addressed when it
comes to determining how you go about paying off a mortgage in
under five years, and that may depend on how much of a down
payment you made, your current balance and interest rate, it
is possible to take 6 years off your mortgage payments by
sending in an extra $100 a month on your house payment.
By using a mortgage payment calculator, you can find ways to
save money, and save big. Now, if you cut corners and reduce
frivolous spending, most people realize that they can save
that amount, but if things are really tight, you can still
send in an extra $50 a month. Either way, you'll save
thousands, even tens of thousands of dollars on the life of
your loan by following these pointers.
Whether you come into some money or not, there are ways to
curtail and cut back on extra spending every month that will
allow you to pay an extra $50, $100, or even more on your
monthly mortgage payments, which will save you between
thousands to tens of thousand dollars on payments that mostly
go toward interest and not principal.
Our last article gave you ten tips on where you can cut back
spending. Using a mortgage payment calculator, you can insert
different amounts of money that can be applied to your monthly
mortgage payment and see how many years you can take off your
loan. This article will give you several more.
These are just the obvious basics, but if you spend a little
time, you'll be able to come up with more as well. This
doesn’t mean you have to live a boring existence for the sake
of paying off your house, it just means trimming the fat. You
can still enjoy that steak dinner or the play or Disneyland,
but just not as often as you used to. Living mortgage free is
worth some sacrifices and belt-cinching after all, and just
think of all the extra money you'll have then to entertain
yourself to your heart's
Here are some additional tips on where you can trim the fluff
out of your monthly living budget.
Cut down on Entertainment Expenses: Do you really need
that golf club membership or those season tickets to the
football or baseball games? Do you have to attend every play
or event held at your local opera house or theater? If you
expect your kids and spouse to cut back, then you have to as
Cut back on Car Expenses: Can you walk to work? Take
the bus? If you can, do it! You don't need that six CD-player
installed in your car, either. After all, you can only listen
to one CD at a time anyway. The same goes for frivolous extras
like fancy rims, tires and accessories.
The Power of Saying 'No': Sure, we all like to treat
our kids, but we don't always have to buy that bike or guitar
that's just going to start gathering dust in a few months
anyway. Kids are amazingly resilient, and if you treat them
with less expensive gifts and fun, they'll be content. Really.
Clear Your Credit Card Debt: Sure, we live in the age
of plastic, but try to curtail that as well, especially if
you're paying more on interest than 10 percent. Get rid of
your high interest credit cards and try to keep them at home
Make Money at Home: Many people have special talents,
whether it's playing musical instruments, creating crafts or
other skills. Start taking in students in your spare time and
offer language, guitar, craft and other types of skills to
others willing to learn from you.
The possibilities are endless, really. By taking advantage of
tools like a mortgage payment calculator and focusing on
saving money, living mortgage free is not a pipe dream. It's a
reality that's attainable by just about everyone, no matter
how much money you make or if you're just getting by. There's
always a way to cut back on living expenses, and that's the
key to making it all possible. So, what are you waiting for!
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