In today’s world, it’s very difficult to truly have job security. All too often, homeowners lose their jobs and it becomes harder to make your mortgage payments. A paid off home is not subject to foreclosure, unless of course, taxes remain unpaid. Therefore, it makes sense to pay off your mortgage as quickly as possible in order to avoid foreclosure. Plenty of families have done it, even throughout this foreclosure crisis period, and another couple has offered their tips on how they are planning to pay off their 30 year mortgage in half the time.
When you pay off your home, you free up a big chunk of your budget and take some of the burden off your shoulders.
Said couple purchased a $350,000 home in 2000 in Seattle and have found various ways to throw extra money at their mortgage. In fact, their dedication to be mortgage free will hopefully see them paying off their 30 year mortgage in 2015, half the time they agreed to.
Below are some of the ways these homeowners earned extra money and saved money to pay down the balance of their principal.
1) Work Hard, Play Hard. Go out of your way to do what you can at work to prove yourself invaluable to your boss and/or company. It is no longer a given that you will have the same job in 10, 20 or much less 5 years from now. Do what you can to make yourself invaluable at work and strive for a promotion or at least as much job security as possible. Paying off your mortgage early means more time to splurge on yourself later on.
2) Put your tax return to good use. If you are one of the many that receives a tax refund each year, put that towards your mortgage payment before you’re tempted to spend it.
3) Sell a vehicle. Some families have more vehicles than they need and don’t take advantage of public transportation. If you can get by with less vehicles than you currently have, sell one or two and put that money towards your mortgage.
4) Earn extra income. Craigslist is a great place to go to search for side jobs, such as pet sitting/walking, cleaning houses, etc. You can also sell items on the Internet, such as unused items, clothing or even crafts/items you make.
These are just a few ways you can put more money towards your mortgage to get it paid off quicker than your loan term. A paid off home is less likely to fall into foreclosure than one with a large, unpaid mortgage.
