If I told you there’s a surefire way to put tens of thousands of dollars in your pocket it’s completely legal and just about anybody can do it, would you be interested? No, this isn’t a get rich quick pitch. It’s more like “get rich slowly” with all the money you save by paying off your mortgage early.
<ul><li>The amount of interest you pay over the life of a 30-year mortgage should be all the incentive you need to pay off the loan as fast as possible. Let’s say you take out a 250K 30-year mortgage at 4%. At the end of that term, you’ll have paid almost $150,000 in interest making the true cost of the home closer to $400,000.</li><li>But let’s say with 25 years to go you decide to put an extra $200 a month against the principal. That will actually shave five years of payments off and you’ll own the home free and clear in just 20 years.</li><li>There are four steps to paying off your mortgage early:</li><li>First, you need a spending plan. You need a budget because you can’t start the process of accelerating your mortgage payments without one.</li><li>The next step is to determine just how much of that extra cash you’ll apply to your mortgage. You’ll want to put as much as possible into that extra mortgage payments category.</li><li>Next, whenever you have “extra” money outside of your normal paycheck, put it towards the mortgage. Make a commitment to put that unexpected cash on your mortgage principal, as well as the surplus money from your budget.</li><li>Lastly, cut the fat from your budget. You may think you don’t have a dime left over at the end of the month, but you really don’t know unless you’ve cut back everything you can. Here are a few suggestions:<ul><li>Cut your cable or satellite service and go with a streaming package. You can probably save $50 or $100 a month just by doing that.</li><li>Look for free entertainment in your community. The library is a good source of information.</li><li>Take a break from eating out. It’s the rare family that can’t save $100 a month by cooking meals at home.</li><li>Try to go six months or a year without buying new clothes. That might save hundreds of dollars.</li></ul></li></ul>Here are a couple of questions we answered from our callers on today’s program:
<ul><li>If you only have one beneficiary, do you still need to make out a will?</li><li>What is the importance of updating a will?</li><li>Who is and isn’t required to file a federal tax return?</li><li>Is halting payments to arrange a debt settlement a good idea?</li><li>Are long-term investment retirement policies worthwhile?</li></ul>Ask your questions at (800) 525-7000 or email them to <a href="mailto:Questions@MoneyWise.org">Questions@MoneyWise.org</a>. Visit our website at <a href="http://moneywise.org/">MoneyWise.org</a> where you can connect with a MoneyWise Coach, purchase books, and even download free, helpful resources like the MoneyWise app. Like and Follow us on Facebook at MoneyWise Media for videos and the very latest discussion! Remember that it’s your prayerful and financial support that keeps MoneyWise on the air. Help us continue this outreach by clicking the Donate tab at the top of the page.

FaithFi

Faith & Finance is a daily radio ministry hosted by Rob West. The program offers a practical, biblical and good-natured approach to managing your time, talents and resources.

Faith & Finance with Rob West

If someone told you there’s a surefire way to put tens of thousands of dollars in your pocket it’s completely legal and just about anybody can do it, would you be interested? Not a get rich quick pitch, get rich slowly by paying off your mortgage early.

Early Mortgage Payoff

null | Nov 23, 2021

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