How To Pay Off Your House In 9 Years

Is it possible to pay off your 30 year mortgage in just 9 years? Of course it is and it is not as hard as you think.  But first, lets see why this is a good idea.

Do you know how much interest you pay on an average 30 year note?  No?  Let me give you an example:

Suppose you buy a house for $220,000 and you get a mortgage for $200,000 for 30 years at 6% interest rate. 

In 30 years you will have paid a total of $431,677.  Ouch!  You paid more than double the price of your house.

Now let’s say you bought the same house and got the same $200,000 mortgage at 6%.   Your monthly payment will be $1199.

How much do you think it will take to pay off that house in 9 years?  Tens of thousands of dollars a month?  How about $5,000 a month more?  Nope.  This is the formula:

Double your monthly mortgage payment and you’ll pay off your house in 9 years.

How much did you save in interest?  Just $172,245!

That’s right.  In this example, sending the bank an additional $1,199 a month will have you house debt free in 9 years.  What’s amazing is this formula works no matter what your mortgage payment amount is.  If you’re only paying $800 month, an additional $800 will do it.

I know, I know, your finances are redlined and you bought more house than you should so you can’t afford to send double the monthly payment.  Ok, how about one third more?

Again, instead of sending in $1,199 on your 30 year $200,000 mortgage you send 1/3 more or $400 more a month.  Now you pay off your house in 16 years and change.  This formula works for any mortgage amount.

Yeah so you really messed up and can only send a tenth or a measly $120 more a month.  Well that gained you a little over 6 years of payments so now you payoff your house in 24 years instead of 30.  Not a big deal right?  Well it still saved you $28,164 in interest over the term of your loan.

So there you have it, send in that extra principle and watch your nest egg grow!

Ps. Check out http://www.mortgageloan.com/calculator/mortgage-payoff-calculator and enter your numbers to see how fast you can pay that mortgage off