HOW WE PAID OFF OUR MORTGAGE IN 5 YEARS ● FRUGAL MINIMALISM

HOW WE PAID OFF OUR MORTGAGE IN 5 YEARS ● FRUGAL MINIMALISM



hey YouTube how's it going thanks so much for joining me again in today's video I wanted to share some information about how I paid off my mortgage and I've gotten a few questions about how I was able to do it and a lot of people I know who watch my channel I've heard of Dave Ramsey and follow Dave Ramsey and this is not a Dave Ramsey video I actually paid off my mortgage before I heard of Dave Ramsey believe it or not I know that's crazy I know that's hard to believe I kind of have always done my own thing and I have done a lot of research and I've read a lot when I was younger about finance and saving money but I didn't actually hear about him until after I paid off the mortgage so I'm gonna kind of go back in time with you and share the story of how how my husband and I came upon this idea to pay off our mortgage so okay in 2008 we purchased a home that in 2005 2006 we could not afford the market was so high in the area we were looking in 2005 2006 that we couldn't actually afford the house and I dreamed about being in that neighborhood and right when them I think was around the whole time the market was going down to late 2008 right after the election into 2009 we saw a house in the neighborhood I wanted to be in and it was a short sale and we put an offer on it and it was a fixer-upper and my husband hated it and I loved it I just knew right away it was the house for me and I knew I wanted to be in that neighborhood and we got the house and we put about I don't know what the percentage was but we definitely put a good thirty-five thousand dollars down and the house was a hundred and seventy-five thousand dollars at the time and in the area that was pretty a pretty good deal now at the time in 2008 I think that was a good deal because in 2005 the houses were going for about 320 to 350 so we were really excited one of the biggest things I think when buying a house one of the things that I tell people when you're looking to buy a house you will be approved for a lot more than what you may want to pay and that's definitely what I stuck to when the houses were high we probably could have gotten approved for that price but in my mind I thought we we will we will not be approved we will not try to look for approved in our own minds we will not look for a house that is $300,000 because that's living beyond our means so I definitely wanted to find a house that allowed me to live below my means and one of the biggest and most critical things for me was if one of us lost their jobs because we were right on the edge of the recession if one of us lost our jobs would we be able to pay the mortgage and we would be so that was a real big thing we were buying our house we wanted to make sure that we could live off of one income and that we could you know afford the payment if one of us lost our jobs and if both of us lost our lost our jobs he would just you know deliver pizza and we can make it work so ultimately the mortgage and taxes and everything on that house the taxes are not high and the area I was living I mean I wouldn't say high compared to some other parts of the country but it was about nine hundred and fifty dollars a month and for me that was rent payment up until that point in my life and I was a renter pretty much my entire life up until then so I thought wow this is a good deal now the way this all sort of transpired was we were always really intense about our savings we again I think the recession really led us to make sure that we were saving everything and that we would not spend frivolously not spend money on things that we didn't need we saved everything except for necessities and I think we got married in 2006 so pretty much our entire marriage up until even now we've always been that way so it was really nice to be able to say we're just going to save everything but the necessities I did a video on ten things that I don't spend money on it's linked below it talks about some of the tips and when people say how did you pay off your mortgage watch that video those tips are basically some of the ways because you really have to cut out everything except your expenses and you have to have a goal in mind so I had this goal in mind that we were just gonna say we weren't looking to pay off our mortgage actually we just wanted to save as much money as possible for I I think we gave us ourselves about five years how much can we possibly save in five years with these two good jobs that we have you know on one income I what I just had my baby in 2007 my first son and I wasn't interested in staying home so I wanted to work really hard to save all my money so we cut our expenses as much as we could you'll see some tips in that video you also have another video on five tips for beginning to save money those are some of the things that we did as well and we just really hunkered down and were frugal because we had a goal in mind and that was really how we paid off more said in five years we didn't know at the time one of the payoff for mortgage but we're gonna save as much money so what what eventually happened was we were saving and saving and saving we were saving almost twenty to twenty-five thousand dollars a year when I tell people that and we were on a middle-class income of two people working it was unbelievable people could not believe that but when you cut your expenses and when you're focused you can do anything and the biggest thing is we didn't focus on other people we just focus on ourselves we focus on making ourselves happy and chasing our goals we were disciplined we you know made sure that we were saving everything except for the necessities and we wanted to make sure that we focused on what we were saving and not making because we're not we're not rich we're just middle-class people and we don't make a lot of money but we were determined to make sure that we were saving everything we weren't spending and so what actually happened was in 2013 when we met our goal of saving all this money we realized we had just as much money in the bank as we did left in our mortgage and I had done some research about you know paying off mortgages and there's really a lot of mixed feelings out there you should pay it off you shouldn't and we had a goal that by November of 2013 we were gonna pay for mortgage because we had just enough in May and I told my husband let's wait and then I come home one day and he empty pretty much emptied the bank account except for a small emergency fund and paid off the mortgage and I almost flip because I said no let's say for another six months so we have a little bit more of an emergency I don't recommend doing that but we did it and three years later it's the best thing we have ever done it really is the best thing we've ever done and we basically lived in that house until we just sold it we Jax Lee just sold it in September of 2016 it was only about a month and a half ago we sold it I'll make an entire other video on that and why we sold it and why we're renting right now but those three years of living in a debt-free mortgage free house was probably the I'd say probably our the best three years of my life and not having any debt and not having a mortgage is truly worth every sacrifice that we made and I'm not here to preach to anyone I'm just sharing my story so it truly was the most amazing thing and the houses went up in value so much that we really benefited from selling and I'll go into that under video like I said thank you so much for watching and hearing my story I hope this inspires you have any questions which I'm sure you will leave them in the comments and I respond to every question I love talking to you guys I love this community thank you so much thank you so much for watching thank you so much for sharing your your stories and sharing any questions you have and listening to me I really appreciate it okay I'll talk to you later bye

43 thoughts on “HOW WE PAID OFF OUR MORTGAGE IN 5 YEARS ● FRUGAL MINIMALISM

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  2. A rule of thumb provided to me about a home purchase: no more than twice your annual salary!
    So if you make $50k a year don’t purchase more than a $100k home.
    This is just you and your family living there, no income properties or anything like that.

  3. I can tell you just use common sense. I can't believe how most people buy, without thinking to ever paying off the house they are buying. In my lifetime, I have bought one 2bdrm apartment, for 95k, which I paid in full in about 12 years. Rented the condo and then bought a 3bdrm house for 110k, (it was a great opportunity), wich I paid in full in 15 years. Rented the house. Bought a 5bdrm house for 225k, in which I live now. I have just paid off the mortgage. I have to tell you, is such a great feeling to have 3 peaces of real estate, morgage free two of which I rent and the other I live in with my wife, without morgage payments. I was fortunate to have bought at the right time. All done using common sense, and doing some of the things you mentioned, with very modest income but with discipline and determination. It can be done.

  4. The big question,
    WHY is this not taugh in school.
    The world would be a very different place if people could unload their debt burden.
    We are slaves to the system.!

  5. Ohhhh what an amazing feeling debt free must be. 4 years Ago I was 120,000 in debt from credit cards and line of credit. Now I’m at 23,000. Feeling so good to be almost debt free!!

  6. you say two income and middle class a lot but are you paying off a $175,000 home with $100,000+ income or $75,000 combined income or what? Middle class is what most people consider themselves from $50k to $250k+ household income. Just want to know how realistic this is for everyone else.It is a great story and very inspiring.

  7. Kind of sad that people don’t have common sense …but buy phones that cost over 1,000 Are you serious 🤔

  8. it is not crazy at all. Dave Ramsey is not the only person in the world with this knowledge :O))))

  9. Interesting! When both of you are set to the same goal, it can happen. Unfortunately my husband is is a spender.

  10. Love your story! I teach money management in the UK, too so I will follow you more too, its always good to hook up. Michelle

  11. Very interesting story! Lots of food for thought. Thank you for sharing. I really am so glad to find your channel!! xo- Cara

  12. I don't even know how much of a mortgage we would qualify for. I never asked because I didn't care. My husband didn't want a mortgage payment higher than $500 per month. PMI just fell off and house is assessed super low so payment is now $405. I still pay $500 per month.

  13. Retired from Corp America at 49…..wife still working and I do Courier work now so much less stressful. My 401k and pension will grow and in about 7 years I’ll pull from that. The house will be paid by then too (still owe 87k …but want it goneee…..I have a nice home but I was house poor for a while…that’s average in New England they prices are high….but don’t keep u with the Jones’ they are buying it all on credit.

  14. It had to be an exciting five years or so… Good thing neither one of you got really sick, or Died For Heaven's Sake period. I had major issues with any family members or friends

  15. is it possible to pay off a mortgage at 50 im single and on about 65k a year and looking at a loan of about 250k..?

  16. I would have recommended paying down the mortgage over time if that was your goal you would have saved quite a bit of interest but I’m so relieved to hear a real story of paying off your home vs all these scams coming out trying to convince people that credit cards should be used to pay off homes.

  17. Ok, I'm looking to buy by the spring of 2019 at the latest. I've been building my credit score and thinking of going rural development loan. Which I can do because I live in a very rural state. My income is around 28k a year. So I'm looking for a cheaper fixer upper that could even be a foreclosure. There's a few between 50 and 65k. If I throw an extra 100 dollars a month and put sweat equity in it to increase it's value, how quickly could I pay it off?

  18. I find it difficult to pay off a Mortgage in 5 yrs in California.. Everything is so expensive..

  19. Ok so who watches the kids? I would love to work hard but people don't want to help watch the kids and daycare is too expensive. But it will come together eventually. I always try and offer help to other parents but they don't need it and don't understand.

  20. Omg! $350K is a dream. In Sydney we can’t even get a small one bedroom crapy apartment for that much.
    People have mortgages over $1 mill.

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