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!