How We Paid Off Our Mortgage in 5 Years

After finding our dream home, we became worried about paying a big mortgage. So we decided to pay off our 15-year mortgage in 5 years instead.
This process was challenging but definitely rewarding. Here are the 7 steps we took to pay off our mortgage in less than 5 years:
1. Get a 15-Year Mortgage (2:08)
2. Make Additional Principal Payments (4:06)
3. Create a "Budget Party" (7:07)
4. Have Fun (8:54)
5. Dream Big Dreams (10:06)
6. Celebrate the Big Day (12:14)
7. Make Dreams a Reality (12:58)
What would life look like if you didn't have a mortgage?
Is it possible for you to pay off your mortgage in 5 years? If not, how about 10 or 15 years?
BUDGETING RESOURCES MENTIONED (affiliate links)
Tiller - www.marriagekidsandmoney.com/...
Mint - www.marriagekidsandmoney.com/...
MARRIAGE KIDS AND MONEY:
This award-winning blog, podcast and KZbin channel are dedicated to helping young families build wealth and thrive. Each week, Andy Hill interviews personal finance experts, families who've achieved financial independence and debt-free young parents.
Subscribe to my KZbin channel today to strengthen your family tree and live financially free!

[@MarriageKidsandMoney]

Budget Resources Mentioned: Tiller (spreadsheet-based): www.marriagekidsandmoney.com/tiller Zeta (free, for couples): www.marriagekidsandmoney.com/zeta Mint (free, easy-to-use): www.marriagekidsandmoney.com/mint

[@Delisalyfe]

I paid off my 30 year mortgage in 7 years. I paid it it off last month..

[@MarriageKidsandMoney]

I love it! I'd love to interview you about it. Reaching out now!

[@leomortimer2565]

Congratulations!

[@denissemarquez5839]

Awesome! We paid off our mortgage in under 5 years on feb 2020!! Right before covid blow up!!! At 31 & 33! With one under 3 and pregnant with baby number 2 it was the best decision we ever made for our young family! Congratulations to your family!!! Im Enjoying your content keep it coming Please!

[@MarriageKidsandMoney]

Wow! That is an incredible family win! What a relief to be free of that mortgage before the pandemic! If you ever want to share the details in an interview on my channel, please let me know!

[@kzalaska4804]

This is great advice! My wife and I did a similar thing 20 years ago and paid off the house in 4 years. It took some sacrifices but I have never regreted it. It also taught me to look at things with a more long term view. I now look at how today's decisions will effect the next few decades, not just the next few months. If you are on the fence think about how it will feel when you are done, not just about what you have to give up in the short term. The lower stress and contentment are hard to describe or put a price on, but you have to do the hard work up front to get there.

[@MarriageKidsandMoney]

Wow! I couldn't have said it better KZ Alaska! We feel much more relaxed without a mortgage - especially during the pandemic when our income was cut significantly.

[@reginawalther6237]

I'm paying off my 30 year mtg in 10 years 7 months. End of May 2022, I'll be mortgage free! I initially committed to 10 years, but life happened.

[@MarriageKidsandMoney]

You’ll be mortgage free NEXT MONTH! Incredible news!!!

[@kevaljoshi7594]

Awesome so inspiring its my dream to live mortgage free can’t imagine living with payments for 30 years .

[@MarriageKidsandMoney]

I'm glad the video was helpful!

[@prestonthomas5399]

Appreciate the honesty with the numbers. Dunno why but most ppl to scared to give details. Thank you sir

[@MarriageKidsandMoney]

I appreciate you saying so Preston! I'll start doing the same for my entrepreneurial journey soon too. It'll help me stay accountable to my goals and hopefully help others along the way.

[@anom7422]

Glad I saw this. Am half way through paying my mortgage off at 4yrs in… I think I can finish it up in 3yrs. I get so distracted and want to buy a new truck when I shouldn’t. This helped me stay the course. Thanks.

[@MarriageKidsandMoney]

So glad to hear this! Keep moving forward and then use the same method to buy that truck in cash when you’re mortgage free 💰

[@TheOneJPtv]

Additional Principle payments is the Ultimate Key. $10, $20 per payment, whatever you can add, add it.

[@MarriageKidsandMoney]

You are so right. It builds over time!

[@janefromthecountry1820]

I agree the 15 year mortgage is almost a very wise decision. 👍🏻

[@MarriageKidsandMoney]

It worked well for us! I got a BA in communications and MBA in Business and Marketing. If I had to do it over again, I would have not done my MBA.

[@cynthiah.3267]

Thanks for sharing. Many people do not think this way. Appreciate your input and honesty.

[@MarriageKidsandMoney]

I’m glad you enjoyed the video! Yes, this viewpoint isn’t the “norm” but I’ve met a lot of completely debt free people who love this choice they’ve made.

[@CycoPatPonfe]

👍my wife and I are on the way to mortgage free! 🙏☝️❤️

[@MarriageKidsandMoney]

I love it! Keep rockin!

[@RoadtoFIRE]

This is awesome! Very inspiring.

[@MarriageKidsandMoney]

I'm so glad you think so! Good luck on your Road to FIRE!

[@sarahshanahan2222]

Anyone on here who is wanting to buy a home.. check and see if NACA is in your area. Free financial advising... No PMI. (But I strongly suggest to put a large down payment).. No closing costs .... no fees and interest rates always fixed and below prime.. no prepayment penalty. I am a single mom and my favorite aspect is if you hit serious financial hardship they will pay your mortgage for up to 3 months. A cheap mortgage is essential for paying off a house early!!!

[@carolannstevens5814]

I love how you give hope with so much joy! We paid as cash would allow for our retirement house. I wish we would have started younger. We collect the old fashion pension along with working for about 4 more years.

[@MarriageKidsandMoney]

Thank you! I appreciate you watching! The old-fashioned pension sounds awesome ... we need to create our own. I hope the stock market perks up next year!

[@carolannstevens5814]

Yes please help.

[@carolannstevens5814]

Thank you Andy!

[@Justanuttername]

Inspired to live frugally and pay off my home.

[@MarriageKidsandMoney]

Awesome! I’m so glad you liked this video. If you live on less than you make and save and invest the rest, time will take care of you.

[@kennethmurray5699]

Awesome,awesome, awesome!!!

[@MarriageKidsandMoney]

Thank you!!!

[@Electro-nics]

Thank you for your videos. You make me realize it is possible even if things we enjoy have to be cut for 5 years is worth it.

[@MarriageKidsandMoney]

So glad you enjoyed the video!

[@PerfectionHangover]

Good job, Andy!!

[@MarriageKidsandMoney]

Thanks Melissa!!

[@DavidRamseyIII]

195k! I love America. Bought about a year ago just outside Sydney Australia. 1.45m buys a weatherboard shack here :) well, renovated shack

[@MarriageKidsandMoney]

Woah! Yeah, huge differences. Our home value is now $500k, but our original mortgage was $195k. Prices are rising fast here, but nothing like Australia or Canada even.

[@kaitlinobrien243]

Great tips. ☘️☘️☘️

[@MarriageKidsandMoney]

Thank you Kaitlin!

[@DeePsix501]

Income was 160-180k, that really helps pay it off early. We're still keen to pay off early, but our income level isn't that high. We've been doing a lot of these strategies overpaying, bonus payments, and living on 24 paychecks. We're gonna make it happen!

[@MarriageKidsandMoney]

YES! These strategies will work and I'm excited to hear your progress. Check back in with us and let us know how its going!

[@dnxkatatcha5716]

I’ll be next to be interviewed by you in a few months. Thanks again for sharing your plans

[@MarriageKidsandMoney]

I love it! Stay in touch!

[@pinkorganichorse]

My favorite channel

[@MarriageKidsandMoney]

That means a lot to me! Thank you!

[@bluegillmich]

yeah Detroit, SW mich guy here

[@MarriageKidsandMoney]

#PureMichigan - hoppy beer drinker, do you like Blackrocks? My brother-in-law owns the brewery. If you haven't tried it, give it a drink!

[@4mytube1000]

Thanks for all that you do and keep it up. I would love to see more content from you interviewing others who are debt free as well.

[@MarriageKidsandMoney]

I'm so glad to hear you say that! I'll keep the interviews coming :) Here's a great one for starters -- kzbin.info/www/bejne/jYDXZXZum92XjqM

[@heroknaderi]

I really enjoyed this video. We had a house we used to own i grew up in it as a child. it is currentoy a rental property and thw owner is a close friend of ours and we plan on buying it back to move in. we could buy it back with a tement still inside and at least get rental income to start. then when we move in we will work extra hard to have it paid off within 5-10 years that;s our plan. we are also thinking about doing a private sale. my aunt did that with her landlord. That;s my Idea. I wanted to share.😉

[@MarriageKidsandMoney]

I love your plan! Especially because this home has so much sentimental value for you. Good luck and come back to share your journey with us!

[@user-to8tc9kt3t]

love the channel from korea

[@MarriageKidsandMoney]

Thank you for your support!!

[@billyhofacker1701]

Hey Andy thanks for the inspiring video. Quick question. You mentioned buying and holding rentals to increase passive income. Now that you are mortgage/debt free, will you continue being debt free with the rentals or will you use leverage? Would love to hear your thoughts and/or reasoning. I’m a no debt guy myself.

[@MarriageKidsandMoney]

If we decide to buy rentals (which we're pausing on), I think buying with leverage is totally fine. Especially with rates as low as they are right now. That being said, I would feel much more relaxed going with no debt.

[@trollsymctroll5361]

What’s your thought on not investing into retirement and focus 100% onto the mortgage? If you had a lower income, and could not invest into a retirement fund, would you still put everything onto the mortgage?

[@MarriageKidsandMoney]

Great question. Even with a lower income, I’d recommend taking advantage of an employer match in a 401k and / or investing in a Roth IRA. Keeping it simple, low cost and diversified with index funds helps me to invest with confidence. That way you have time on your side. The longer you invest, the more you can make. That being said, if you don’t want any risk then paying off your mortgage is virtually guaranteed savings.

[@mcpikachu8605]

Loving the content! I have just started entering the realm of buying a house and saving for a down payment. Do you know of anyway to get an even lower than 15-year fixed mortgage? I would love to get just a 5-year loan to hopefully also qualify for a lower interest rate.

[@MarriageKidsandMoney]

I believe some mortgage providers like Quicken Loans do a 10 year mortgage. Rates are low but not sure how much lower than a 15 year. Could be something to consider!

[@LoanNguyen-jj7wv]

Nice tips thank you

[@MarriageKidsandMoney]

I appreciate you watching!

[@shesmymama]

A home for $195K? That's awesome! ! We had those prices 25 years ago. Entry level in my region is $515K and that's for a condo or 2+1 house in a not so great neighborhood. Although I enjoyed the video, a 15-year is not realistic nor does it allow you to leverage your money at higher prices. Your $1900 payment (assuming that includes PITI) compared to the $515K entry-level house in my region, with 20% down at a 2.8% int has a 15 year mortgage of $3492/mo (PITI) and $2379/mo (PITI) at 30 years. Most owners would choose a cheaper mortgage and the tax write-off benefits on a 30 year. Making an additional, say $500 a month, is still cheaper than the 15 year payment and would shave about 12-14 years. With the market crash approaching and possible price cuts in the near future (10-40%), a 15-year may be best and make sense at that time. Just not at the astronomical prices we are experiencing right now. Congrats on paying off your mortgage. :)

[@MarriageKidsandMoney]

Paying off your mortgage is definitely a personal decision and may not be best for everyone. It was for us. Our mortgage was $195,000 but our home value (at the time of purchase) was $350,000. It's closer to $450k now with appreciation over the past 7 years.

[@shesmymama]

@@MarriageKidsandMoney Got it!That makes sense. All in all, that's a great accomplishment! :)

[@austinhenry4382]

Great advice, but please consider giving a larger percentage to charity. My wife and I started at 10% when we got married and added .5% every year. This year we have been married 18 years and are giving away 19% of our income. You will be much more happy being wealthy if you use more of your money for others in need.

[@MarriageKidsandMoney]

That’s a great goal for you and your wife! That type of generosity is incredible. I love how you laddered up over time. We could learn a lot from your example.

[@annkolodzinski2591]

Wondering if you were still investing in retirement while paying the house off. If yes, how much of your gross income went into retirement.

[@MarriageKidsandMoney]

Yes! We had a good income so we were maxing out my 401k from 2013 to 2020. We also maxed our Roth IRAs for a few years too. We have around $500k in retirement investments now.

[@stellasatterlee7332]

Does the Rule of 55 apply to a (private sector) non government pension?

[@MarriageKidsandMoney]

I wish I could help you there. The Rule of 55 is a bit confusing to me.

[@davisamills597]

Ok but how much did everyone buy their houses for? Just curious if anyone bought a house >$450,000? (especially in high cost of living areas)

[@MarriageKidsandMoney]

Great question! Our house was $350,000 at the time of purchase. 9 years later it is now worth $550,000

[@davisamills597]

@@MarriageKidsandMoney ok that makes me feel a lot better. Right now our mortgage is $427,000. Trying to determine if its realistic paying off such a large amount within 5 years

[@JulieHiltbrunner]

Start with a hundred thousand $ income in a state with a low cost of living and no state income taxes.

[@MarriageKidsandMoney]

That definitely helps! We made an average of around $170k per year during this time. And yes, we live in the low cost of living state of Michigan. We do have state income taxes though. If this timeline feels unrealistic for you, try extending it by 5 or 10 years. You’ll still be mortgage free earlier than most everyone else!

[@MarriageKidsandMoney]

What would you do with the extra money if you didn't have to pay a mortgage payment ever again?

[@PerfectionHangover]

Save save save!

[@MarriageKidsandMoney]

@@PerfectionHangover Oh yeah! For retirement or for something else?

[@denissemarquez5839]

Definitely family vacations- building memories with our two little ones!

[@MarriageKidsandMoney]

@@denissemarquez5839 Absolutely! We've put aside a separate bucket for annual vacations. 10% of our annual expenses is set for trips!

[@francis5944]

My story is just like yours... the only difference is that I don't give money to charities. I used to, but I stoped when I find out the CEO's from these charities are making over $200,000 per year. how can I help a charity who's Boses are getting overpaid with charity money. any advice?

[@MarriageKidsandMoney]

I understand where you are coming from completely. Having your hard-earned money line a CEO's pocket is difficult to stomach. I would recommend looking into a resource like Charity Navigator. They give you a deep dive into a charity's numbers so you can see exactly how much is going to marketing expenses and executive compensation: kzbin.info/www/bejne/l5ncYWt-Z8ytZtksi=2q9_RE7puShcPvnN

[@katelynd9098]

New subscriber! Wonderful video! Congrats on paying off your mortgage! I really like how you had a budget plan to help reach your goals! And I really like your tip to still have fun and enjoy today! This is still possible while achieving your financial goals, wise advice! I recommend checking out the channel SugarMamma TV! She shares financial tips and advice too! I think you may like her videos as well!

[@MarriageKidsandMoney]

Thank you Katelyn! Yes, we definitely need to enjoy today while planning for tomorrow. It's a delicate balance, but if we start small and build over time, we can get there.

[@valar12]

Financially this is a misuse of your money over investing that money over your mortgage period. Interests rates are so low you’d come out ahead and with between liquidity than paying that mortgage. Debt is a tool.

[@MarriageKidsandMoney]

A lot of people feel this way. It makes sense! Especially when you can potentially make more in the stock market, rentals, etc. For our family, this was the right decision. We're very happy living mortgage free.

[@minni1094]

Andrew you are making a lot of assumption with that statement. If he held the mortgage over that 15 years then yes you could. But you also have to take in consideration the money he actually saved by doing this. Also as long as he has exposure to the markets via his company 401K then the amount he spent here is money well spent for the financial freedom it brings.

[@redredredredful]

Is this an actor?

[@janebaker4912]

Nah, he's lived this and just passionate.