Three and FREE - A Responsible and Smart Way to Own a House!
Have you ever thought about owning your home free and clear and envisioned how nice it would be not to have a mortgage to pay? It wasn't that long ago that our ancestors did more of this. However, in the last few decades, it's been considered more of a right than a privilege to own as big of a house as you can afford to make the monthly the payments on. What if we taught our kids the rule of "three and free” instead? Check it out.
Start Out With a Plan, Stan!
You move out of your parents and rent something with a bunch of friends so your living expenses are low (most of us did this in college and had a great time with our roommates). You save all you can until you can buy that modest starter home for cash. Still not married? Ok...then continue the roommate route and rent out your extra rooms and put that extra cash flow to work (investing it to grow safely) along with your continued savings. When you have enough saved to add to your equity to step up in house, then go buy your next one. Continuing on this path will certainly bring you to your desired dream house by the 4th one and you will have done it all without paying a dime in interest! It will also happen much quicker than you think.
Don't Let the "Buts" Get You Down!
So, somebody out there is saying "but Jacci, what about all the tax deductions for that mortgage interest..now I have to pay more income tax". That's all a bunch of hooey! Think about what that is actually saying. For every dollar you spend, the government will give you 30 cents back. Does it really make sense? You will pay a little more income tax without the mortgage interest deduction, but you will pay $100's of thousands less in mortgage interest over time. That's REAL savings!
It also comes with the bonus of no stress. If you have a tight month or lose your job, nobody will be breathing down your neck with the threat of taking your home. So many Americans have gone through foreclosure and lost their equity and their family homes, vacation homes, etc in the last handful of years in the tough economy. BUT if they didn't have a mortgage, they could have ridden the market back up and not had to lose all those nights of sleep…NOR their home.
Who Cares About The Joneses?
Sure, you won't be able to impress all your friends right off the bat with the impressive house, but who cares about the Joneses anyways!? You'll be able to have more free time without having to work that overtime or that second job to get the lender paid each month. You'll have the life that others will envy with time off to play and enjoy your health. You can invest all that money you'd have spent on interest to the lender in something better that will pay you dividends for life. It's just a little something to think about today...my two cents.
Need help buying or selling a house in the Appleton/Fox Cities area? Well what are you waiting for? Give me a call! Jacci Konkle 920-740-3599