How to Pay Off Your Mortgage in Five Years
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Want to be completely debt free? Andy Hill, of Marriage, Kids, and Money, shares the strategies and tactics he and his wife are using to pay off their mortgage in five years!
How to Pay Off Your Mortgage ASAP
A few months ago I had my friend, Steve Stuart here to talk about what it felt like to not have a mortgage payment and own their home free and clear.
It's been a blessing for his family and at the time we were speaking it felt like a far-off dream for us but we're now approaching a point where our only debt would be the house.
No credit cards car payments or student loan payments to send out. In a few weeks, we're going to review our finances for the year and talk about our plans for the next including what are we going to do with the mortgage.
How fast do we want to pay it off?
to help me weigh my options, I recently discovered a couple who are
Andy,
In this episode we get into:
- why you may want to dump that mortgage sooner rather than later
- finding extra money to throw into your mortgage
- how to stay motivated when paying off debt
Hope you enjoy!
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If you want to hear from someone who has paid off their mortgage early, listen to my episode with Steve Stewart.
Resources for Paying Off Debt Faster
Want to learn more? Here are some resources to check out:
- Best Budget and Money Apps: Personal Capital, Tiller, Mint
- Refinance your mortgage for a better rate: SoFi
- 5 Reasons to Choose a 15-Year Mortgage
- Mortgage Payoff Calculator
- The Total Money Makeover
- Paying Your Mortgage
off Early - 15-Year Mortgage Paid Off in 5 Years
- Paying Off The Mortgage Wasn’t Our First Priority (but we did it anyway)
Why Andy and Nicole Want to Pay Off the Mortgage Early
Part of Andy and Nicole's family plan included moving towards being a one income household.
By paying off their other debts and minimizing their monthly expenses, the Hill decided that what was best for them was Nicole taking some time off to spend more time with their kids.
They also wanted to minimize the interest paid over the life of the loan. That money saved could go towards other goals or at least reduce how much they'd need for retirement.
Paying off their mortgage was a milestone they wanted to achieve so they worked on an aggressive plan to reach it.
How They Paid Off Their Mortgage in Less than 5 Years
The first key with the Hills' plan was the mortgage they had with their house. They had put a sizable down payment down and decided they wanted to have a 15 year mortgage.
What we do is pay about on average about $500 extra on principal each month but we also so I get paid 26 times a year as opposed to the typical 24 times a year you know twice a month.
So what we decided when we bought the house was that we're just going to pretend we only get paid 24 times a year and we're gonna take those two extra checks and throw them at the mortgage as well.
So we have that extra monthly payment but we also have two other times per year that we make a big old payment.
So we essentially just live on those 24 checks.
Andy Hill [7:01]
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Thank You to Our Partners
Support for this podcast comes from partners like Personal Capital. Easy to set up & easy to use. You can have all your investments, income, and expenses all pulled into one place.
Did I mention it’s free? Why don’t you give Personal Capital a try today?
Music Credit
Like the music in this episode? Our theme song is by Gentle Regime. I also want to thank Lee Rosevere for music in this episode.
Thanks for sharing. It took me a little longer to pay off my mortgage but I was able to complete it in 7.5 years. It was the best thing that I ever did. Not having that debt anchor weighing around my neck is such a freeing feeling 🙂
Congrats; how cool is that!
One reason I was really excited to talk to Andy was because we’re looking to pay off our mortgage (the other reason was because Andy’s a sweetheart and a money nerd 🙂 ).
We’ll have to sit down and decide how aggressive we’ll be, but being completely debt free sounds like fun!
Awesome show! The mortgage always seems like a huge chunk to tackle, but after listening to this show I realized how “reasonable” it could be. We’ll have the last of our student loans paid off by April, our van paid off by June, and my truck paid of by December 2017 (or maybe sooner). After listening to this show, I pulled up an online mortgage calculator and ran some numbers utilizing the debt snowball idea from all those other debts. We could have our new, 30 year mortgage paid off 27 years early!! 😮 Many more money talks with my wife between now and then, but I think it’s complete realistic for us to have it paid of at least 25 years early. Holy cow! Thanks so much to you and Andy for the information!
Thanks Eric for the kind words; loved having Andy on to share his story. Looks like 2017 will be a huge year for you – congrats!