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Dear
Grant,
I own a duplex
and my renter's charge goes against the mortgage along with a
contribution from my paycheck.� I have been paying an extra $100 on
the principal [each month]. How can I tell how fast I'm paying off the
mortgage? I'm hoping to pay it off by the time I'm 70 (60 this year) so
I can retire.���
Kate S., Minnesota
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| Pay
attention if: |
You
are wanting to get totally debt free, including your
home mortgage! |
| The
Plain� Summary
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You
can rapidly pay off your home mortgage debt by adding
just a small extra amount to your minimum payments. |
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Dear
Kate,
I really like your determination to be
out of debt!� There is no reason why you can't pay off your mortgage in 10 years...or less!�And,
with the stock market in the type of shape it is lately,
there really is no safer investment than paying off your
mortgage.Things Weren't Always
Like This
We as
Americans have been conditioned to accept mortgage debt (and debt of all
kinds!) as a way of life.� We have been conditioned to believe
that debt-free home ownership is something that only happens to people
that have been making faithful payments for 30 years.��
However, things weren't always this way!�
In the 1930's and 1940's, the typical term of a home mortgage loan was 10
years!� (Yes, you heard that right!).� In the 1960's, it
was 20 years.� Now, in the year 2000, the overwhelming
choice of home buyers is a 30-year mortgage loan.��
Why have things progressed to this?� Why
do we accept the idea that we have to be saddled with debt our whole
working life, especially mortgage debt?� I think that there are
2 reasons.� First, as I stated before, we have been
conditioned to accept this, by often well-meaning people within our
society.� Second, we seem to want everything now...and more
of it!� We often aren't willing to wait or accept the
"compromise" of a smaller home or a home in a slightly less
desirable location.� The only problem is, "easy lending" does
helps us get the "house of our dreams"...but this debt
fills our lives with worry and anxiety...all due to having debt
hanging over our shoulders during times that we should be happily
raising our families, contributing to our chosen professions, and...most
important...building up our relationship with God!��
4 Steps to Paying
It Off!�
So, what
is the solution?� How do you pay off
your house early?� The answer is actually very simple...but
sometimes not easy.� The first step is to not buy more
than you think you will need for the next 5-10 years!� II say
5-10 years because no one can really predict if they will get
married...or have kids...or have their parents in...support a needy
person...etc.� Or, what if you decide to open a business in your
home?�� Whatever your situation, do some thinking about what
you will really need for the next 5-10 years.� The object of
this is to not buy "too much house"!� If you already
own your own home, that may mean selling the house that you are in
now!� I know these might be hard words to some, but think about
it...is your house payment a burden to you?� Is it creating stress
in your marriage?� Is it really worth the worth the worry?�
Life is just too short!
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