Paying cash for a home

Announcing that you want to pay off  your current mortgage early to your accountant, may make your accountants head spin. He may be asking you if you are serious. If you are currently looking for a great home loan to buy the home of your dreams, how long will you be paying for that dream?

Having a plan to pay your home off early can save you thousands of dollars in interest. It also frees up your current mortgage payment to be invested. How much money do you currently spend on your mortgage or rent payment ? A modest three bedroom property may cost anywhere from $ 700 to $ 3000, or more depending on where you live.

You may be asking yourself, where you would find the money to pay off your home early, or pay cash. Delaying what you want can help you to live with less or with no debt. A great example is two working spouses who together earn $55,000. One spouse earns $ 35,000 and the other $20,000 . If this couple lives off the majority of the money that one spouse earns $ 35,000 they can pay cash for a home in seven years.

$ 2100 saved per month for 7 years is $176,400 .  That leaves $33,800 to live on.

$176,400 will be a modest home or condo in almost any city in America.  Or this could be a down payment that allows you to live in a home that otherwise you would not be able to afford based on your income. You could buy a fixer upper in a great neighborhood, and have the cash to renovate or improve it before you move in.

If you are right out of college, high school, or a single partent and want to own a home, why not stay at home or with relatives for a few years and live of a very small portion of your income ? Your relatives that you live with may be willing to work with you on the portion of the bills that you are responsible for since you are aiming for such a great goal. I highly reccomend The Total Money Makeover to help you get out of debt, and pay off your home. Click Here to learn more about this great resource.