If you’re looking for a house right now, this very well could be one of the most difficult times to buy real estate. The amount of available homes is super low and prices have skyrocketed. I know where we live in Metro Detroit, it seems more difficult than ever to buy a home at a decent price. From what I’ve read and heard, it sounds like a similar story in other major metros in the US as well.Continue reading “5 Smart Ways to Save Money When Buying a New Home”
How would you like to own your home outright?
What would it feel like to never make a mortgage payment ever again?
For our Mortgage Freedom series, we’re interviewing Colin Murphy who eliminated his mortgage in less than five years. Colin is a father, a husband, and a Chicago native. He’s going to let us peek inside and see how he made this monumental feat happen.Continue reading “Why Young Parents Should Pay Off Their Mortgage Early – with Colin Murphy”
One fall night in 2010, my wife Nicole and I were watching the Suze Orman Show. (Yes, I used to DVR it). There was this fun segment where someone would call in and Suze would analyze that person’s financial health and give them a grade. It was called How Am I Doing?
One term that we kept seeing over and over again on this segment was “Net Worth”. Since we were personal finance newbies, we had no idea what this meant. Nicole and I were making a combined annual income of $130,000 so we figured our net worth must be HUGE.
After the show was over, we decided to see how rich we really were. There was no doubt in our mind that we’d be better off than most of the jokers that call in to the show and get an “F” grade from Suze!
We walked upstairs and started to write down all of our numbers on a big whiteboard. By separating our “assets” (what we owned) and our liabilities (what we owed) into two big columns, we started to discover that we weren’t rich.
We were kinda broke.Continue reading “How to Increase Your Net Worth by $800,000 in 8 Years”
Our first question of the month comes in from Nick from Tampa who responded to a blog post I wrote about paying off our mortgage (here’s the article):
I love this blog post. As a former Dave Ramsey groupie myself, I’m really excited for y’all!
Would love to hear about your perspective one year later. I’m curious where you’re at with this? Have you followed through on your plans to allocate your savings like you say at the end of the post?
Have you invested in other opportunities?
How have the vacations gone?
Do you regret paying the mortgage off or do you still feel it was a smart decision?
From, Nick from Teach My Kids Money
Today, we’re chatting about Mortgage Freedom.
Eliminating the largest debt in your life … Owning your home outright.
If you’re reading this and you’re thinking, “Well … you always have a mortgage. That’s just something you need to pay forever. No one pays off their mortgage.”
Well, I have a guest today that completely disagrees with that statement.
Talaat McNeely joins me today on the show to discuss how he and his wife, Tai, paid off their $330,000 mortgage in just 5 years. Not only did they complete this impressive feat incredibly fast, but they did it on a single income.
Our question of the month comes in from Luke from Indiana:
I was reading on your blog that you recently paid off your mortgage early. Congratulations!
I’m a Dave Ramsey guy like you and we’re getting close to baby step 6. I’m considering going heavy into paying off my mortgage like you did, but I’m also thinking it might be smarter for me to invest more for my retirement or just simply invest in the market. I also know market returns are unpredictable and we’re near all-time highs.
I have a 15-year mortgage at around 4% and the principal sits around $200,000. My wife and I are both working – we like what we do and combined we make around $200,000 per year. I feel like we could throw $50k per year at the mortgage and we’d be done in 4 years or less.
That could also be a good amount to throw at our retirement each year too.
What would you suggest for us? Should we pay off our mortgage or invest the money?Continue reading “Should I Pay Off My Mortgage or Invest?”
Recently, my family became completely debt free.
No student loans, credit card debt, personal loans, car payments and, yes … no mortgage.
After 7 years of educating myself, diligent planning and partnership with my wife, we officially do not owe a single dollar to anyone. (We do have a late fee for Moana at the library. Does that count?)
We’re incredibly excited about our young family’s future and the opportunities that our debt freedom has opened up for us.
In 2004, my first mortgage was a 30-year 5/1 ARM at 5.25%. If that information confuses you, don’t worry. I was completely confused too when I signed up for it at 22 years old.
I didn’t care though. After saving up $20,000, I was thrilled to put that money into my first house down payment. I was proud to be a homeowner.
That’s what we’re supposed to do, right? Buy a home so we’re not wasting our money on rent?
Well, homeownership can be a smart move for some, but not the way I did it. I made two mistakes right away with my first home:
- Signing up for a mortgage that I didn’t understand
- Committing to homeownership costs that I could not afford
This week’s question comes from Michelle in response to an article I wrote about paying off our mortgage early:
I find myself in a unique position. I understand the steps you’ve outlined in your mortgage pay off article. I’ve read a few books on that process by Dave Ramsey.
What advice would you give to someone who lives in a very high cost area?Continue reading “Is Debt Freedom Impossible in a High Cost of Living Area?”
In late 2017, we paid off the $195,000 mortgage on our dream home. After 4 years of focus and partnership with my wife Nicole, we’re now completely debt free and thrilled about the future ahead of us.
To help our two young children remember this family tree-changing moment in our lives, we decided to celebrate with them. Instead of just burning the mortgage and tipping back a few glasses of champagne (which we did too), we came up with a few unique ideas of our own like running through a “Mortgage Wall” and whacking a “Mortgage Piñata”!
The kids had a blast and so did we. This was a moment we wanted our kids to remember. It was the day we decided that our family was going to become debt free for life.