Give yourself a break.

There is a high probability that the info I am about to impart is already known by everyone that reads my blather…but that isn’t going to stop me from blathering it anyway!

For everyone that is attempting home ownership and has yet to pay off the horrible bill that comes once per month called “the mortgage payment”, let me give just a bit of advice.

If you have a mortgage of say 15 years…most are 15 year ones now right?  You can pay it off in less than seven years by doing one little thing.

No, you don’t have to increase the payment.

First find out from the company if there an an “early payoff penalty”.  Not many companies impose the EPP, but some smaller companies will and that can be a total pain in the pattootie.  If they do not penalize their customers for early payoffs, then this plan is for you.

Pay 1/2 of the regular payment every two weeks.

Yep, you read that right.  You will make two mortgage payments of 1/2 the monthly total every two weeks.  This works out to 13 full payments per year. That 13th payment is entirely PRINCIPAL.

George and I purchased a home…we had a high interest rate as our finances went straight into a toilet after my heart attack…our credit rating tanked.  We were danged lucky in moving to Enid and meeting our real estate guy. Our mortgage was a seven year fixed rate mortgage.

We paid it completely in 4 years and 3 months.

WITH NO PENALTY.

AND SAVED 13000.00 in interest.

It is easy for most to pay 1/2 mortgage payment every two weeks since most employers pay every two weeks.  If you are on a fixed income, or a military income you will be paid once a month and it might not be as easy to budget.  BUT, it can be done.

And, since the mortgage interest and points are no longer deductible on our income taxes, you save BIG bucks by paying off early.

And quite frankly, the feeling of freedom that comes once you know that house is yours and not the banks is amazing! I feel ten years younger just from knowing this place is mine and George’s………and no bills, no banks can ever take it away from us.

 

 

7 thoughts on “Give yourself a break.

  1. I didn’t know this, where are you based? How does this work? Is it because you’re Entellus m essentially paying a little early?

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    1. Simon, I am in the USA. Our financial institutions that provide home loans usually have a very small print clause that explains you may pay off the loans early without penalty. Some have a clause that says if you pay off early you have a percentage penalty which pays some of the interest that has not yet accrued. Basically there are 26 weeks per year. if you take half of 26 you end up with 13. Instead of making 12 monthly payments you pay 13 bi-weekly payments..that 13th payment is 100% principal. it cuts the interest of the loan by a significant amount. We had two years equity the very first year of paying on the loan. By year two of payments we had 4 years of equity. Interest is determined by the principal owed on the balance..if your balance goes down exponentially so does the interest. Hope that helps.

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  2. It’s the best feeling. Although there’s always costs and maintenance, you have a roof over your head, no one can boot you out, and you’re free of those high-cost money-lenders …
    Congrats!

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  3. Maybe now you can treat yourself a little…take a trip may or save up for something special!

    Liked by 1 person

    1. i’m buying a second instant tent. This way when our best friends go camping with us they can have their own home away from home!

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