Thrifty couple reveal secret to paying off mortgage in FOUR years and how to retire before you reach 40 – Mirror.co.uk

If you can afford it, it might be simple to pay off your mortgage earlier. But should you? That’s a complicated question. For many people, their mortgage carries an interest rate that’s lower than they could average in retirement or investment accounts. And that means the “extra” money you could throw at a mortgage might earn more elsewhere. Homeowners with low mortgage interest rates may be better off putting extra money in a Roth IRA or 401(k), both of which might offer a higher return than paying off the mortgage. Then there’s the college aid factor. If you’re applying for need-based aid for your kids, that home equity could count against you with some colleges because some institutions view equity as money in the bank. If, after those caveats, you want to pay off your mortgage early, here are four ways to make it happen.

Key Takeaways:

  • Lindsey Bryant, 38, and her partner Vicki Wright, 35, have avoided a 35-year loan by paying off their £160,000 mortgage early on their one-bed seaside flat.
  • Other top tips include selling every item if they hadn’t used it in the last 12 months and snubbing online in favour of negotiating with salespeople directly.
  • And in line with their mantra, every extra bit of money saved or earned went straight towards overpayments – saving them avoiding thousands in interest payments.

“A couple who paid off their entire mortgage without help in less than four years have shared the secrets behind their success.”

Read more: https://www.mirror.co.uk/money/thrifty-couple-reveal-secret-paying-10784484