PAYING THE HOUSE OFF PAYS OFF

By
Real Estate Broker/Owner with people first...then business Ran Right Realty BRE Agent 636943

In Real Estate, there are so many avenues and paths of learning/risking and not just about Real Estate itself but all that is connected to it especially the people factor. Getting upfront, close and personal with your like kind and thinkers when they are handling large transactions with big sums at stake is intimate in its nature. One of those intimacies is buying a home

SHELTER

That is a big accomplishment in itself. You are going to always need shelter and have to pay for it assuming you don't live out in the wild in a lien too or tree house. That being the case, consider what I am about to tell you because you don't hear about it often but you should.

PAYING THE HOME OFF

Once purchased via leveraging, the usual approach to this is to now establish a quality of life and a routine based on being a homeowner and while going about your daily life and all it has to offer, adding to your likes and subtracting from your dislikes, you end up in what they call or refer to as follows..

A COMFORT ZONE

Here is where the famous cliche of "water seeks its own level" can be lived and observed. Each one of us will settle into a life routine called budgeting with no two being a like but very similar and it has short and long term benefits while doing so.  Lets approach the crossroad of our mortgage subject

PAY-BACK

We know typically that one can set-up the borrowing of funds traditionally with money down and a long term 30 year commitment to repay the funds. Whoever came up with 30 years must have based that on the average income and expense of a person in America with a typical job. Who knows?

BEWARE DEBT

On average, the mortgage consumes anywhere from a third to a fourth of our income. That's a large bite of anyones paycheck. Whats left is used to make life make some sense and keep us going while we keep going. If we get into too much debt, the joy of living is jeopardized. Why?

I OWE

Because we focus exclusively on the fact of working to keep ourselves afloat and nothing else. Its a subtle dynamic but a powerful one. If one takes on debt for different reasons, it is hoped for that it makes sense and is and was worthwhile. It owns you and is a crule task-master if not obeyed

GIGANTIC DEBT

Little purchases come and go, the larger ones last a little longer but the house is a lifetime partner that needs and requires time, money and attention. What if we focused on taking that house debt and either reducing significantly or paying it off as soon as possible?

TIME FACTOR

First off, it appears to be a daunting endeavor but only from the thought of it. Remember, when digging a hole or moving a pile of rocks, it starts out slow but through consistency and commitment it moves slowly and surely. Overtime, a hole is dug deep and a pile of rocks is now somewhere else

REDUCTION

Sacrifice will have to enter into a persons life if they take this debt reduction idea on. Perhaps the lack of toys, vacation or being minus a quality here or there may kick in, but the gain is at work too. Also at the same time, while reducing the debt loads as your amounts shrink,  something interesting happens

MAKING PROGRESS

At some point, you have more disposable money. As you reduce the debt even more, your income is freed up. In five to ten years time, you will have noticed that what you owe is a long way off from the original debt. That in and of itself is very satisfying. It is encouraging too

BUY & WHY

In America, we are bombarded daily and everywhere we go to spend not save our hard-earned monies. Lets face it. We do need a car, washer/dryer, clothes and all the rest plus the costs of maintaining or replacing. The trick is to stay focused and always have something put away that allows for these things

HAPPY MORTGAGE DAY

But the picture of paying off the house debt goes on. Decades ago, it was so doable & easy to pay off a mortgage that they had deed burning parties just like a birthday party or celebrating a holiday. That's how common it was. As homes became more expensive & the cost of living didn't keep up; debt loomed

WHAT A RELIEF

Lets fast-forward to the end where someone has paid off the home by hook, crook, luck, focus or determination. All I know is it has been done. We are there and it feels great. No longer is a big bite of your income disappearing. You now feel and act lighter in your thinking, doing and being

FREE AT LAST

A whole new way of looking at something is presented. Just the fact that we were never created to bear such a burden or be in debt for a lifetime to anyone or thing is rewarding and self-satisfying beyond words. No longer bound, we become free in the truest sense of the word which begets more freedoms

INVEST IN WELL-BEING TOO

That's what your money should really buy i.e. this type of freedom. It is empowering to the practitioner allowing for the mind and the abilities to be wielded for other more meaningful and productive pursuits. We all know that the material aspects of life only make sense as long as we are alive but the well-being condition out weighs that considerably

DEBT TAKES YOU CAPTIVE

Remember it is not so much how you look as it is how you feel. Having less burden and debt allows one to step lighter and see things differently closer to their natural state and purpose. Debt is a distraction that lurks in the background of it all. When using debt be aware, it is using you too

PAY IT OFF

It pays off in so many ways. Don't listen to anyone telling you otherwise. Just yesterday, I spoke with a young man who was wrestling with this. His friends said to leverage and invest more and go out on a limb. I said don't listen to them and pay off your home. He thanked me profusely (twice)

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Topic:
Real Estate Best Practices
Tags:
mortgages
income
loans
financing
debt
quality of life
shelter
owning a home
reduction
debt free
burden
disposable income

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Rainmaker
3,823,795
Gita Bantwal
RE/MAX Centre Realtors - Warwick, PA
REALTOR,ABR,CRS,SRES,GRI - Bucks County & Philadel

I love the post. I hope home owners will read it no learn from it

Jan 17, 2017 10:48 AM #1
Ambassador
2,628,875
Anna Banana Kruchten CRS,CRB
Phoenix Property Shoppe - Phoenix, AZ
Arizona's Top Banana of Real Estate!

Richie I so agree - being debt free is liberating on so many levels.  Some folks get themselves boxed into a corner and it makes it really tough on them to get out from underneath all the debt.  I know as we had way too much debt when we had a big office. I am thankful we no longer have any of that debt - very thankful.

Jan 17, 2017 12:59 PM #2
Rainmaker
2,225,126
Richie Alan Naggar
people first...then business Ran Right Realty - Riverside, CA
agent & author

Gita Bantwal ...I agree with you and I do hope many read the posting too

Hello Anna Banana Kruchten ...Your commenting stands & thank you A.B. C.

Jan 17, 2017 01:42 PM #3
Rainmaker
642,840
Mike Bjork
American Pacific Mortgage - Redondo Beach, CA

I see both sides of the coin.  I usually suggest to people to do what makes you sleep best at night; afterall, they're the ones whom have to live with any possible consequences.  There are a few points that can be made against paying off the mortgage early, but the most important point (in my opinion) is the extra money being applied to the mortgage is done at the expense of re-investing those funds into retirement or another investment tool.  Even a Fed study (I have a copy of it, if anybody is interested) awhile back indicated that it was better to apply the extra money toward one's retirement funds, than to pay off the mortgage early.  I could write more on this subject, but it would be too long.  But the bottom line is to listen to one's gut and to do what one is most comfortable.  One size doesn't fit all in the way of finances.  I'm glad this works for you!

Jan 18, 2017 09:34 AM #4
Rainmaker
2,225,126
Richie Alan Naggar
people first...then business Ran Right Realty - Riverside, CA
agent & author

Hello Mike Bjork ...Most excellent commenting and sharing thank you Mike

Jan 18, 2017 10:14 AM #5
Rainmaker
1,425,557
Grant Schneider
Performance Development Strategies - Armonk, NY
Your Coach Helping You Create Successful Outcomes

Good Afternoon Richie - I am loving coming to the finish line of my mortgage.

Jan 19, 2017 12:03 PM #6
Rainmaker
2,225,126
Richie Alan Naggar
people first...then business Ran Right Realty - Riverside, CA
agent & author

Grant Schneider ...its one of those American perks and it does not dissapoint

Jan 19, 2017 12:51 PM #7
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Rainmaker
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Richie Alan Naggar

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