Most homeowners carry a mortgage until the day they die because they do not think it is possible to pay off their mortgage in five years. The truth is that with some good planning and a lot of hard work, you could own your home free and clear in just five years. Just follow these steps to start paying off your mortgage sooner than you ever thought possible.
Calculate how much extra you will need to pay toward your mortgage in order to pay it off in five years. Enter that you would like to pay off your home in five years along with the amount you currently own on your home, your interest rate, and the number of months you have already paid on your mortgage. You will then be given the amount of money you need to pay extra every month to have your home paid off in 5 years.
Look at your current budget to start cutting expenses so you can put that money to your home loan. If you are like most people, you probably do not have enough money sitting around every month to reach your goal of paying off your mortgage in five years. So start looking at your budget to see where you can cut back. Down grade your cable and Internet, stop eating out, lower your cell phone plan and shop around for insurance. Keep cutting expenses until you reach your goal or you can cut any more out of your budget.
Work extra if you need to in order reach your monthly payment goal. If you have cut your budget down to the bare minimum and you still have not reached your goal, start finding ways to make extra money to put toward your mortgage. Take on extra hours at work, freelance, get a second job or even start mowing lawns. It doesn’t really matter what you choose to do, so long as you reach your monthly payment goal.
Put any windfalls you receive toward paying off your mortgage. No matter how hard you try to make those monthly payments, you will likely have a month or two when paying extra just isn’t possible for one reason or another. So, plan on putting things like your tax return or raise toward your mortgage. These windfalls are a great way to make up for those unexpected times when you cannot meet your monthly goal.
Keep working through these steps until you have reached your goal for paying off your mortgage. Whenever you are thinking about quitting, try to remember that if you can keep going you will only have to do this for five years. After those five years you will own your home free and clear 25 years sooner than most other home owners. So whatever you do, do not quit. You will be glad you stuck with it in the long run.