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Living Mortgage Free

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Have you ever dreamed of what it would be like if you never had a monthly rent payment, or even better no mortgage? This idea may seem so farfetched that it has never crossed your mind. I remember the first house I bought, the day I became a broke man. It was a proud moment in the life and times of Tim Riley. I was just a young guy just starting his career, and owned a new car.  It is a fact the number one purchase of all college graduates is a vehicle. I had great friends, and now I owned my own home. Sayonara landlords and rent payments, I had officially joined the ranks of a lifetime of debt… I actually broke the news of homeownership to my friends by saying, "I joined the club of forever in debt.”  

I was a blind idiot to accept the fact of being in debt my whole life. A young and irresponsible twenty something kid who didn't have a clue about finances. The reality of it is, you do not have to live a life of debt just because you buy a house. I did not realize this until I read Dave Ramsey’s, “Total Money Makeover.”  His lessons are old school and simple to explain but harder to follow because you need to change your behaviors.

I could step on my soap box a praise Dave for an amazing program and how it is the best thing since balloon mortgages, insert sarcasm here. Reality is, I do not follow Dave’s baby steps to a "T." He did give me an avenue to travel down, and more importantly gave me hope to one day keep the money I make, or spend it as I see fit. Imagine having an extra $500 to $2,000 every month! It would be like winning the lotto every month.

There are different methods to paying your house off early, ALL of which require you to pay extra towards your principal amount. Be sure to specify this with each payment otherwise the lender may apply the extra cash to principal and interest, which will not help you out much.  Ask your lender for a Amortization Schedule to become familiar with your mortage situation. All the mortage plans I have read aim to attack this schedule by throwing extra cash at it. The easiest way to pay your loan off early is by making at least one extra monthly payment every year. This could knock 4-6 years of your loan alone. Another popular route people take is refinancing their home from a 30 year loan to a 15 year loan. You will pay your house off in half the time and pay a fraction in interest. The downside is you will payout more money each month, but you will also receive a lower interest rate. There are many methods to choose from to help pay your house off early, so find what works for you, and remember someday you will live mortgage free.

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