Explore the Liberating Journey of Living Without a Mortgage

Title: Experience and Tips: Living Without a Mortgage

For most of us, the monthly mortgage is one of the biggest expenses. It can be stressful to know you’re in debt for decades, but owning a home is a practical necessity in today’s world.

A little while back, my wife Crystal and I decided to fully pay off our mortgage. It wasn’t a decision we made lightly, but I can honestly say, living without a mortgage while still in our late 30s feels liberating. However, there are other sides to the story that I’d like to share with you.

Our journey to living mortgage-free began when we bought a small condo for $159,000. We didn’t have much of a down payment but were excited to own our first home. A few years later, we moved to an area with a lower cost of living, and invested in a new single-family home.

Our financial situation started to change four years into owning this home. I’d sold one of my websites for a six-figure sum, our family was growing, and we were living on one income. We felt secure about our retirement savings, so we started considering paying off the mortgage.

With the fluctuating nature of my self-employment income, we decided that rather than increasing our income, paying off the mortgage to reduce our monthly obligations would bring more stability. So, we cleared our mortgage with a lump sum of around $150,000, eliminating our largest monthly bill.

Soon after, we decided to move once again, this time to a property in a more private location. Alluding to our past experience of living without a mortgage, we chose to pay cash for the new house rather than pursuing another mortgage. We found peace in our newly bought house, amidst nature.

Paying off your mortgage early, however, involves some trade-offs. You’ll have less to save and invest elsewhere, like your retirement. While you might get more returns by investing that money instead, there is a peace of mind in living debt-free.

From my journey, here are some takeaways:

1. There is no hard-and-fast rule for whether to pay off your mortgage early or to invest. It depends on your individual circumstances.
2. Paying off the mortgage frees up your monthly budget for other uses.
3. Property and school taxes are still an expense. Even after paying off the mortgage, the ownership of house doesn’t become “free.”
4. Maintenance costs do differ, especially when comparing old construction homes with newer ones.
5. Paying off your mortgage doesn’t completely end your financial challenges.

Some of the simple steps we took to pay off our mortgage include living comfortably within our means, increasing our income without significantly changing our lifestyle and prioritizing our money habits. Also, you should know that your location affects real estate prices drastically.

Paying off a mortgage early is not an easy task, but our story serves as one example that it is possible, even when living on a single income.

Tags: #budgeting #family #finance #financialPlanning #mortgage #personalFinance #saving