One of the largest goals and investments for most American families is mortgage-pay-down and home ownership. This is a great source of pride and accomplishment for those who attain a mortgage free lifestyle.

       However, for most the largest share of our income is dedicated to purchasing a home and this encumbers us financially for 30 years or more.  What a bummer!

 

Making mortgage payments can be stressful because they take so long to pay off.  The worry is always there, “what if I loose my job or get sick and can’t work?”   What a shame so many of us live that way.

 

Well the truth is I no longer live that way.  I did mortgage pay down and not only am I mortgage free I am debt free.  I do not have a mortgage and I have 5 cars in my name with no car payments.  I will be so glad when there are only two cars in my name.

 

Many have asked if mortgage pay down is right for them. I don’t blame them, they should ask. Maybe I can help you answer the question with the following information.
        


                                                           

 

   In this example I am not talking about making an extra payment or doubling your payments to pay off your mortgage. Our example comes from using a systematic mortgage pay down system which if properly used will guide you into a mortgage free lifestyle without changing your monthly budget.

 

OK, so if you borrow $200,000.00 and purchase a home at today’s (01/10) best rate of 4.75 APR you will pay 175,584.40 in interest alone over 30 years.  The total you will pay for your house if you don’t refinance later is 375,584.40.  That’s a large burden.

 

 

 On the other hand if you used a mortgage pay down system using the same numbers as above and let’s say you had a total household income of $5000.00 with total monthly expenses of $3000.00 plus your mortgage payment of $1043.29 totaling $4043.29 output each month, you could have your home paid off in 10.7 years saving 19.7 years in time and $120,475.13 in interest payments.

 

Now the truth is the mortgage pay down system will not work this perfectly because your monthly expenses and your income will change along the way.  But with proper use the system tracks it all and you will always know when your pay off will be.

 

Now to show you how this could benefit you further, let’s say you took your payment and put it in a jar for the next 19.7 years. You would save over $237,000.00.  So if you invested it in a safe place it would go a long way towards your retirement.