Why We Want To Pay Our Mortgage Early
Estimated reading time: 5 minutes
Learn why paying off your mortgage early can be a game-changer for your financial well-being. Discover the benefits of financial freedom and building wealth.
Paying off the mortgage early that’s what we’re doing, and here’s why.
I vividly remember the day I came home from work, and my husband was sitting behind the computer with a perplexed look.
He looked at me and asked, “I don’t know. Do you think we should pay off the mortgage early, too?”
Contributor: Nurse Frugal at Ladies Go First
Building Wealth And Paying Mortgage Early
Here Is Some Background…………
A few weeks earlier, we had just started listening to Dave Ramsey, a radio host and author who believes debt-free is the key to financial freedom and building wealth.
We had emptied our savings accounts to pay off the two brand-new cars we had just financed.
My heart sank in my chest.
Interest Costs When Paying For A Mortgage
Was my husband taking nutty pills before I came home?
Did he realize that paying off the mortgage would mean we would have to work lots of overtime for years and years to pay off the $233,346.60 owed on our mortgage ultimately?!?!
$118,123.78!!!!!!!
That can buy me another house somewhere, six cars, millions of chocolate bars, or lots of mission trips….the list can go on and on.
He proceeded to do a mortgage calculation that revealed that if we didn’t pay off the house early, we would pay $118,123.78 in interest throughout our mortgage’s life, essentially throwing that money away.
Working Together Towards Mortgage Early Payoff
It took me a few days to get on board with my husband.
Suddenly, we became teammates and partners on our journey to attack this massive debt burden.
While holding each other accountable for our finances, we got on a budget (something I have dreaded my entire life). It has such a terrible connotation.
We decided to live from last month’s income and jointly decide how our money would be spent the following month by doing a “zero-based budget.”
This means we decide on paper how every dollar will be spent the following month.
Our New Frugal Lifestyle
It took a while to get used to this new frugal way of life; the first two months, I wanted to throw my husband out the window when I couldn’t “buy” the things I “needed” (vacations, new clothes, dining out…all things that one can live without.)
I would throw these little whiney pants tantrums because I felt “entitled” to have certain things.
But then I started to see progress. We felt traction as our mortgage debt diminished.
The funny thing is that when we started in February 2011, we anticipated having the house paid off in April 2016 because of my “whiney pants” needs and wants.
Burning Our Mortgage Early Almost Reality
It’s a year and a half after we started, and we are halfway done!!
Once you see that traction, you get more motivation, and it’s like a freight train you can’t stop.
My husband and I started working more and living off of 40% of our income, putting everything else towards the mortgage, and we have never been happier.
Part Of The Budget Committee
I respect my husband more than ever with the direction he takes our family.
We are partners in our finances because I am treated as an equal member of our “budget committee.” I like to refer to myself as Vice President.
This experience has been the most enriching in my life.
We have freed our souls from meaningless “stuff” that we can easily live without, and our marriage, teamwork, and communication have strengthened.
It has taught us the value of hard work.
Freedom Of Ridding A Mortgage Early
I imagine all the opportunities this will open up for us:
- The possibility of us retiring early.
- We only have to work a day or two when we have children.
- Doing more charitable work.
These are the things that truly matter in our life
We hope to pay off our house in August or September of 2013.
When that day comes, we hope to inspire other working people that anyone can become financially free.
Update: They did it, paid their mortgage early, and had kids!
Discussion: Would you pay down your mortgage faster or invest the money?
Please share your comments below.
Thanks for stopping by to read.
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