How do people pay their homes off in ten years or less?

I did it in a little ovver four years using a mix of the approaches below. There are essentially four variables to work with...

a) initial loan amount - limit what you borrow by buying a modest house in a cheaper suburb. While it's nice initially to have a large brick veneer house, it's a drag for the next 25-30 years. If you borrow less you'll repay less in interest and by building up equity quicker you can always choose to upgrade later.

b) interest rate - an obvious one, but keep an eye out for the lowest "comparison rate". Mortgage brokers can be useful, but you can often get a better deal (such as waiving establishment fees etc) if you approach the lender directly, particularly if it's a bank you already deal with. Be careful of refinancing as at the current time it can end up costing you more over the life of a loan. Look out for "professional" deals and "wealth packages" offered by the banks that provide a discounted rate. Also, make sure that you're not paying for "bells and whistles" with you loan that you won't be using.

c) Repayment amount - try and put any extra dollars you can into extra repayments. This really makes a huge difference. There are two things that you can do here - look at spending less on discretionary items and put the money into the loan instead. Sorts of things I did were cheaper holidays, running a smaller car and taking lunches from home. The other thing you can do is earn more. Either a salary increase or overtime, or a second job. I worked two jobs for a couple of years - seemed tough at the time, but I look back on it now thinking it was such a short period of time.

d) Repayment frequency - pay the extra amounts when you get them - don't save them up to the next fortnightly payment. For the normal payments, I'd match them with when you get paid. If you get paid monthly on the 15th, set up your loan so that it direct debits you account for the loan amount on the 15th.

Good luck! Paying your home off quickly can be done if you're willing to make some short-term (2-3 year) sacrifices. Not having the monthly mortgage payments to worry about, and the extra money you then have available, is a great incentive to pay it off quickly.

use following base :

1. make a payment to every 2 weeks
2. leverage funds by paying about 15 percent more than required at each payment point.
3. ensure you make an annual downpayment of about 5K on the anniversary date of the mortgage.
4. save, save,. save.

this assumes the you are carrying a 175,000 mortgage at 7 percent

These people tend to have real money. They are not typical people and they are not an example to be followed. If you have a good job and work hard, and pay a little extra every month then the time will lesson but if not, you will be paying for the full amount of time. Be careful of scams that discuss refinancing and talk of cheaper ways and easier payments.

Go to www.wizard.com.au and use their calculators. Just by paying fortnightly, rather than monthly, and having your salary deposited into the loan account can save you THOUSANDS of dollars on your mortgage repayments. Yes, it's possible to pay it off - not easy, but definitely possible.

Double up on payments.

They pay each month what would be required to pay off in 10 years or whatever term they decide fits their budget.

For example:
Loan amount $100,000.00
Interest rate 6% - 30 year loan
Monthly P&I payment would be: $599.55

If I wanted to pay it off in ten years the monthly principal and interest payment would be: $1,110.21
To pay off in 15 years P & I would be $843.86

paying well OVER you monthly mortgage payment every month, even if you are poor and scraping by it is a REALY good idea to pay more than it says, even if it is only a few dollars. it adds up, and intrest is a *****, so the more you just pay the less you have to pay in interest, thes peopl actually end up saving money in the long run.... its a good habit to get into, try it with your credit cards, and watch the balance fall....

They must have high income and fiscal discipline to put every cent in to the mortgage.

in 15 years, you would be making 2 payments per month.

in 10 years, your monthly payment would be very well double or more of the original price. plus a large downpayment also helps.

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