Posted in Financial Sense

Money-Saving Monday: Mortgage Debt

Welcome to my brand new “Money-Saving Monday” series!

As a designer, I am always looking around my house thinking of ways to improve it. As far as investments go, putting money into our house is a pretty good one. However, if I’m decorating or adding a bunch of “stuff” to our house that doesn’t make sense, I’m just throwing money away. I want to help people make beautiful homes, but I don’t want to cause them to go into debt over it. With this series, I hope to share some tips that could help all of us manage our finances a little better. If you have any additional tips or personal wins, I hope you’ll share them with us!

My husband and I rarely talk about money publicly. Some people are already jealous of the fact that we have a brand new home. I know it’s hard not to be envious of something “new,” but our circumstances were out of the ordinary.

Before the fire happened, we originally had a 30-year mortgage. I know what you “smart money” people are thinking:

A 30-year mortgage on a $50,000 house? WHAT INTELLIGENT PERSON WOULD DO THAT?

Well, I bought the house on my own in 2005… before the recession hit. The short answer is that it gave me a payment I could afford. The biggest problem with this awesome low payment is that we were going to owe on this house forever! Occasionally I made extra payments, but it wasn’t happening often. So, a few years ago, we decided to refinance our mortgage to a 15-year loan. We were no longer able to make extra payments, but we were going to be mortgage-free a lot sooner than before.

So, how can you reach that mortgage-free milestone?

I looked at several websites {including Dave Ramsey’s} and this article from Bank Rate was my favorite. Check it out:

4 Ways to Pay off Your Mortgage Earlier

I hope you find some of these tips useful and are able to apply them to you. If you are mortgage-free, please share with us how you got there! You might be able to help or inspire someone else to do the same!

Author:

I am a Mom and self-employed Interior Designer. Our family lives in a small town in north-central Pennsylvania where everybody knows everybody. I blog for fun to keep my friends and clients informed of what's going on in the design and decorating world, to share my designs, and to show what we're working on in our own home.

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