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I just jumped off the treadmill in my home gym, which got me thinking about a different kind of treadmill: the mortgage treadmill. Many of us jumped on this treadmill whole-heartedly, but we can’t wait to get off of it.
Truth be told, I’d rather be paying my mortgage than paying someone else’s, so that’s fine. Reports show that people who own homes have a net worth that’s 44 times higher than renters. Even the millennials are catching up and understanding that real estate will be their No. 1 priority in the next few years.
If you do already have a mortgage and you want to pay it off faster, all you need to do is make one extra payment per year. You could put a work bonus toward it or simply increase each mortgage payment by one-twelfth. That will shorten your payment period by four years, which will save you a lot of money.
If you are like most Americans and only plan on living in your home for five to seven years, you may want to consider refinancing to an adjustable-rate mortgage that’s fixed for five to seven years. This can save you tons of money as well.
The money won’t come out of nowhere. Sacrifices will need to be made. However, if you cut some wasteful spending and just apply it to your mortgage, your run on the mortgage treadmill will be much shorter.
If you have any questions for me in the meantime, don’t hesitate to give me a call or send me an email. I look forward to hearing from you soon.
