The financial crisis we have today started in 2007 when some homeowners could not make monthly mortgage contributions. Some are even unable to pay off their mortgage on time. But the brokers still allowed unqualified people to borrow money and Wall Street consented on selling loans even if they knew that payments would be difficult to collect.
And as we sit here today, our home prices have been slashed by 40% and our retirement nest egg is worth half its value.
This economic meltdown has brought us to a new financial reality. And the reality is it is no longer safe to have debt or to hold on to excess debt.
And your biggest debt may be your mortgage. The only safe investment you can make in these times is to live debt free. Paying off your mortgage in your home is one way to live debt free.
Paying off your mortgage is a risk-free investment. Financial advisers and banks would tell you to invest your extra money on stocks. But you if you check in on your retirement nest egg, you will see how your savings have gone down during the past year.
Now is the perfect time for you to make sure you will have a brighter financial future by paying off your mortgage. Just think about how great life can be if you have no mortgage debt to think about and you have your extra money all to yourself. How would you feel if that happened today? Think about how comfortable your life will be after retirement when you don’t have to use your retirement savings to pay for your mortgage.
The first thing that you should do to pay off your mortgage is for you to decide that you will pay your mortgage early. Having talked to more than 250 home owners, I found out that they failed to settle their accounts earlier so I had to state the obvious. Another is that although they thought paying off their mortgage was something they need to do, they did not commit to really go through with it.
Paying off your mortgage needs full commitment primarily because the process could take 5 to 10 years. And the priceless reward? You get rid of your mortgage debt early.
There are various methods and techniques to paying off your mortgage. You can either may extra payments toward your mortgage monthly or you can make use the biweekly accelerated mortgage system. Both methods require you to spend extra money for mortgage payments every month.
However, there is a technique lets you pay off your mortgage fast without requiring you to spend more or change your lifestyle. The technique, which is called mortgage acceleration, uses a mortgage checking account. What you need to do is to deposit your paycheck to the account and use it to pay for your bills directly. You can end up paying off your mortgage debt 13 years earlier and save thousands of dollars!
And remember you don’t have to change your lifestyle or refinance to get this interest savings.