How We Paid Off Our Mortgage in 7 Years

pay off mortgage fast

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How We Paid Off Our Mortgage in 7 Years (Time): This is truly my favorite headline and an inspiration to everyone. Do whatever you can to get out of debt. This couple went much further than that; they bought a house in Sacramento, CA for $300,000 in 2008 and aggressively paid it off. They wanted to pay off their house quickly, so they did it in just seven years. Seven years! Now that’s FAST! They are now living in a house that they have completely paid off. Oh, did I mention they in their 30’s! Incredible work! An inspiration.

Andrea Stewart and Jerimiah Honer bought their house on a 0.10-acre lot in Sacramento for nearly $300,000 in 2008. The idea behind paying off a loan faster than scheduled is pretty simple: It saves you money. That’s a huge part of the reason Andrea Stewart and Jerimiah Honer decided to repay their 30-year mortgage in just seven years — by doing so, they saved more than $130,000 in interest. Now the couple has an opportunity to achieve other goals, like invest beyond their property and existing retirement funds, travel and maybe do a little shopping. The frugal pair hasn’t done a lot of that in the last several years.

3 Retirement-Crushing Unforeseen Circumstances (Money): Planning for retirement is a challenge for everyone because you have to find money to set aside in savings, invest that money well, and then figure out how to make ends meet once you stop working. Even when everything goes right, retirement planning isn’t easy, but the real test comes when unforeseen circumstances might ruin all of your plans.

What happens to their reverse mortgage after your parents die (Bankrate.com): As more seniors turn to reverse mortgages, their adult children might well be puzzled or concerned about what will happen to that debt when one or both of their parents eventually dies. At that time, questions about how to pay off the loan will need to be resolved — and relatively quickly.

7 Apps to Teach Your Kids Personal Finance Skills: (US News & World Report): Before the age of smartphones and online gaming, teaching kids how to save came in the form of a piggy bank sitting in their bedroom. Now, that age-old piggy bank is moving to the digital world, powered by apps. Mia Wenjen, the blogger behind Pragmatic Mom, says the current financial climate, with the Great Recession still fresh on our minds and students dealing with high debt loads, makes it more important than ever to teach children how to save and budget. “You sort of realize you have to teach it at a very young age,” Wenjen says. She recommends parents begin teaching children about finance around 5 or 6 years old, or at least when the child can start noticing money and asking about it. However, studies show that parents feel awkward when it comes to talking to their children about money. Although the best way for children to learn finance skills is to handle real money, says Nancy Phillips, author and financial blogger of Zela Wela Kids, apps provide opportunities for parents to start discussions with their kids about saving and budgeting.

 

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