A Simple Plan To Pay Off Your House

Nine Easy Steps To Pay Off A House Fast

Who wants to pay off a house?

Here are 9 simple steps to pay off your house in the shortest time possible.

You will be amazed that there are no secret formulas, no tricks, nothing to buy, or any life altering decisions to make except perhaps one. Make a deliberate decision to live mortgage free today and follow these steps to pay off your house.

Step 1 To Pay Off Your House

Take inventory of how much you owe on revolving cards and the least amount you are required to pay on each. Don't overlook miscellaneous accounts such as doctor bills or furniture loans.

Now add to that list car loans, boat loans, and recreation vehicle loans including balances and payments. Lastly add in your mortgage payments and balances. Count in home improvement loans and 2nd mortgages.

Don't panic. If you have never performed this exercise before, it might make you feel a little anxious. But don't worry. You can do this.

Step 2 To Pay Off Your House

It is time to get your spending habits under control. This might mean cutting back on purchases you don't need. Decide today that you are not going to live beyond your ability any more. Once you embrace this idea with your whole heart you might be surprised how liberating it feels.

Step 3 To Pay Off Your House

Referring back to your list of debts, arrange the accounts in order of their balances from lowest to highest. Most likely at the top will be your credit card balances, followed by installment loans, personal loans, car and recreation vehicle loans, and finally mortgages.

Step 4 To Pay Off Your House

Consider where you can produce even a little cash flow for funds to pay off the mortgage. It does not require a lot of planning upfront. Your vision of mortgage freedom is more attainable than it might seem.

Here is a simple example. You might want to forgo one fast food meal a week. If you spend $15 less per week for restaurant meals, you can save $60 per month. $60 is all you need to begin to pay off your house fast.

Step 5 To Pay Off Your House

Begin your program by taking the lowest balance at the top of your list and adding the $60 you saved to its minimum payment.

Suppose the balance is $1000 on credit card number one and the minimum payment is $15. Simply add $60 to the minimum payment for a total of $75 each month until the balance is paid in full. It is important to continue making at least the minimum payments on all other debt.

With each payment, your balance will decrease but it is instrumental to this plan to still pay the $75. You are accelerating the payoff each month.

Don't give up because you'll be glad you persevered when your mortgage is gone.

Step 6 To Pay Off Your House

Waste no time beginning card number two once the first credit card balance is gone. Use the $75 you are paying on card one and add it to the monthly minimum payment for card two.

Step 7 To Pay Off Your House

Continue the process with credit cards three and four until all credit cards are paid in full.

Then begin on installment loans, personal loans, car loans, and other vehicle loans one at a time. As you see balances decreasing, keep in focus your goal to pay off the mortgage.

Step 8 To Pay Off Your House

Now the fun really begins. Instead of eating one fast food meal a week, you took the $60 and started the ball rolling toward mortgage freedom. You added the $60 you saved to the first credit card minimum payment. Then you added the monthly payments you made on the first credit card to the second card and the second to the third and so on. After the credit cards were paid off, you added the total to your recreation vehicle and then to car loans.

In a short period of time you have become entirely debt free, leaving you only with the need to pay off your house.

Step 9 To Pay Off Your House

By now you have truly accelerated your program to pay off a house. Let's suppose by the time you finish paying off credit cards as well as all other loans that you have gradually worked up to applying $1000 per month to your debt reduction program.

Remember the only additional money you began with was the $60 saved from eating out one less time per week. Now you are going to begin to use the additional $1000 to pay off your house. Let me illustrate.

If you have a $250,000 mortgage at a fixed rate of 6.5% for 30 years, your principal and interest payment would be $1,580. Take the $1000 you are using to pay down your other debts and begin to apply it to your mortgage each month.

Make certain to instruct your mortgage company to apply the additional payment of $1000 to principal.

In other words, you are going to make the regular monthly payment of $1,580 plus an additional $1000 to principle for a total payment of $2,580.

Now listen to this. With the extra $1000 applied toward your mortgage payment, you will watch as you pay off the mortgage in less than a dozen years.

And all you did was eat out one less time each week.