Paying for a home is a process that can take a lifetime. Seriously. Most people opt for a thirty year mortgage, making monthly payments lower and more affordable. The problem is, those people also end up paying WAY more interest than people who pay off their homes faster. Some people instead go for a fifteen year mortgage- higher monthly payments, but less of them in the long run. However, I just stumbled this article by Debt Free Divas on how to pay off a home just four years. Here’s their idea:
If this hypothetical client continues to direct all the money previously paid toward debt into a conservative investment vehicle (this calculator assumes a 5% interest rate) for the next 4.5 years (the same amount of time needed to dump consumer), they would amass $280,000.