Could You Pay Off Your Mortgage Early?

Posted by Dan Wolf on Friday, June 14th, 2013 at 1:08pm.

There was a story posted recently on the Yahoo Contributor Network by an individual who explained how he and his family had paid off their $156,780, 30 year mortgage in less than five years from the day they purchased the home. Click here if you'd like to read their entire story.

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Do you think you could do the same? Should you?

Could You?

If you read the entire story, you'll see the steps this family took to pay off their mortgage early. The one common theme you'll notice is that what they did was not extraordinary. They simply looked for ways to make their existing income go farther, and they implemented those ideas. I'm sure anyone could find ways to stretch their existing income farther. In fact, many of the things this family did are things that almost any family could do. But there is another idea that wasn't pursued by the family in the article - probably because they didn't really need to.

What if you stretched your existing income as far as it will go, and you're still unable to make enough of a dent in your mortgage to pay it off as quickly as you'd like? Well, maybe you should look for ways to increase your income. Maybe it would be worthwhile to take on a part-time job or start a part-time home based business and apply what you make to your mortgage payoff program.

Should You?

You may be saying to yourself something like; "I don't plan to stay in my house more than five years before I upgrade to a larger home." If that's your knee-jerk reaction to the idea of paying your mortgage off early, consider this: Just because you'll be taking on a new, larger mortgage on a more expensive house doesn't make an early payoff of your current mortgage a bad idea. Quite the contrary in fact. The more you're able to pay down your existing mortgage the more equity you'll have in your home, even if you don't pay it off completely before upgrading. And the more equity you have in your current home, the less you'll have to borrow for your next home.

So the answer to both questions is "yes".

If you're considering selling your home in the Anchorage area, contact us for a free market analysis. If you're looking to buy a home, we can help you with that as well. 

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