For years, I worked with Dave Ramsey as an ELP Endorsed Local Provider. I believe in pursuing a debt-free life for you and your family. This may seem a shock considering I make a living off of people getting loans and purchasing homes.
Because I have helped thousands buy homes I have also helped thousands sell and pay off loans. Here are my top tips for achieving a mortgage-free life.
1. Make mortgage payments 2X a month. This is a trick to make another payment per year. Ask your lender first if they accept bi-monthly payments. Otherwise, you could just be paying early. Essentially you are paying off interest so, the interest doesn’t collect interest.
2. My personal favorite. Get a 15-year mortgage. This is a no-brainer if you can afford the payment. Yes, you can make double payments on a 30 year and it is essentially the same. But, you won’t make double payments it is not human nature. Plus, you can get a 15-year mortgage at 1.99% today. Plus, statistically, you will sell before you pay it off with a 15-year mortgage your payoff will be nearly double! This one builds wealth.
3. Sell your home and downsize. Downsize isn’t just the size of the home. It is the size of a lot. If you bought your home prior to 2014 chances are you are double the amount of equity in your home. You could sell and purchase another home below the market. This transition will set you up for a debt-free mortgage quickly. I did this 3 times each time gaining more equity.
Questions? Send me your questions. What is my home worth? Where would I go? How much do homes like this cost? When is the best time to sell?