How I Paid Off My Mortgage in 5 Years!

I paid off my house! While it feels surreal, this video is sharing exactly how I paid off my mortgage in under 5 years (June 2017 - March 2022). We also look at 4 key steps I took in order to pay off my home during this period.

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This video details the changes we made to our finances and lifestyle that enabled us to attain this goal, which might seem challenging but definitely possible. We hope to inspire and guide those who wish to embark on their journey towards mortgage freedom.

In the video, we share four significant changes we made to our finances that helped us achieve this milestone. We also debunk some common misconceptions about paying off mortgages and discuss why sometimes, taking the less traveled path can lead to financial freedom sooner than expected.

Contrary to some high-earning individuals who share their success stories, our journey was not born out of earning a huge salary. We had a typical household income that varied from $60,000 to six figures, and our home was worth over $400,000. What led to our success was not just about money, but about making the right choices and using strategies that we discuss in the video.

We delve into the risk factors of having a mortgage, such as job loss, and how this impacted our decision to pay it off early. The video breaks down the debate of investing in stocks vs. paying off the mortgage, explaining our thought process behind choosing the latter.

Our journey involved strategic refinancing of our mortgage and meticulous tracking of our loan schedule. We emphasize the importance of understanding your mortgage details like interest rates, the impact of extra payments, and the amount of total interest you could end up paying if you stick to the regular payment schedule.

We share our personalized approach of saving up for additional principal-only payments, which significantly reduced the life of our loan and total interest paid. We show the impact of even minor extra payments on the overall mortgage timeline.

We also discuss a unique strategy we used called a 'no spend month', where we avoided any unnecessary expenses for an entire month, pushing all the saved money towards the mortgage. This method, although challenging, helped us accelerate our mortgage payoff process.

If you're contemplating paying off your mortgage early or are already on the journey, this video could be your comprehensive guide and motivation to keep pushing. We hope that by sharing our journey, we can help you navigate your own path towards mortgage freedom.

Chapters of Today's Video on How to Pay off your Mortgage Early
00:00 Mortgage Free!
00:48 The Financial Journey Start
01:17 Crazy Idea to Pay off the House
02:22 Original Projected Payoff
03:14 $200K of INTEREST??
04:05 Step 1 - Saving Money
05:20 Adjusted Payoff in 2030
05:58 Refinancing the Mortgage
06:44 $200k Interest to $27,000
07:18 Step 2 - No Spend Month
08:21 Step 3 - Budget like a Beast
08:54 Step 4 - Limiting Overhead
09:39 A New Level of Side Hustles

In this video, I'm sharing with you my journey of paying off my mortgage in 5 years! If you're thinking of doing the same thing, then you need to watch this video!

My goal was to pay off my mortgage as quickly as possible, and I did it by following a few simple guidelines. By the end, I had reduced my monthly payments by over $1,000 a month! If you're looking to make a similar financial journey, then you need to watch this video!

*Disclaimer: Bob is not a financial advisor. Please contact a professional financial advisor prior to making any decisions. Some of the links and other products that appear on this video are from companies in which Bob Sharpe earns an affiliate commission or referral bonus. Bob Sharpe is part of an affiliate network and receives compensation for sending traffic to partner sites. The content in this video is accurate as of the posting date. Some of the offers mentioned may no longer be available.

[BobSharpe]

Are you on the mortgage payoff journey?

[atl]

I paid off my mortgage in December of 2021. Originally had a 30 year loan and paid it off in 14 1/2 years. It is such an amazing blessing to be out from under that debt. I would add as much to the principal each month as I could. I would pay extra when I got my annual bonus or if I received any tax refunds. I was borderline obsessed with paying it off. Eventually it happened and it truly was a wonderful feeling. Now, I’m equally as borderline obsessed with investing. Every extra dollar goes into my investment accounts and it is fun watching that grow.

[dweb]

I agree 100% My wife and I did the same. We are both old school and we own our home. We are now maxing out our 401k and saving even more outside of that.

[lasercooper]

I’m glad I’m not the only “crazy” one. Walked in nearly the same shoes but I was laid off from my career job in 2009 and was out of work for 13 months except I started mowing grass to try to save everything I had acquired over a 20 year career. Nearly lost it all if it weren’t for the mowing. Took the first job offer I got in 2010, continued to mow til 2017 as my side hustle, and paid off the house in 2021. Peace of mind is priceless and risk free. Doesn’t matter now if I lose my job due to economy or health reasons. Everyone assumes a 30 year income is a guarantee when getting a 30 year mortgage. It is not, I promise.

[romanovskie]

My Wife and I bought our first home October 2018 for $310k with 20% down payment. We paid it off March of 2022. What we did is we saved about 25k each year through our jobs and dumped that on the principle in December during 2019, 2020 and 2021 and then paid the remaining amount off with stock market gains I made trading during the 2020-2022 bull market mania. It was incredible because those stock gains accelerated our early payoff date by several years. Best feeling ever to have done all this by age 30. Now we can invest excess cash into stocks and projects for life.

[captainmo]

Same. Paid off in 11 years - 4 months. House is worth 800k.
Paid in full. Have another 7-800k in the market. Plan on retiring mid 50's with 5-6million.

[Hebrew-Nation]

This really motivated me so much. And showed me how important the principle is to my morgage. I just bought my first home and made my first payment today and decided to make that extra payment to my principal instead of my interest. Not only was this video helpful but it's even more educational on teaching me self control and eliminating a few habits and letting me know i must get even more focuse. Limit my spending on unnecessary things. Learn a second income and target my principal even more. Let go of all the distractions and focuse on my home. Very good video specially for a first time home buyer

[Dailyfiver]

Stability and not having debt will always be more important to me than how fast my savings grow. I watched both of my parents get laid off several times in my life and 2008 was extremely hard on both of them.

[GraceEagle]

Congrats! You're right - no debt and a paid off house puts you in control. My wife and I are joining you shortly in paying off our house.

[nanoman]

Being someone who did 3% down (sounds crazy to me in my educated stage of my financial journey) I was focusing on this. Been 6 years and I've managed to drive that down from owing 97% principal to about 71.57%. This year however, I took the opposite strategy, those dollars are flowing into a Roth IRA, a 2023 401k, and a little left over for a taxable trade account. We aren't planning on staying in this house for long so along the same logic you used, I've switched to earning that hopeful 8-10% annually. Just found the channel, enjoying your take and the info. Thanks

[bobpoland]

VERY NICE !!! the point is own your home period ! I did this when I got remarried in 2011. I told my wife NO mortgage ( my house was paid for but we decided to live in her house ) I made a mortgage payment every week for about 4.5 years ( she had it for a while) now Im 62 and have had no mortgage for about 8 years. The best part is our taxes are less than $400 a year ( yeaaaa Marion Co Fl ) so my housing is less than $40 a month :-) :-). People say how did you make a mortgage payment every week ? I say Ummmm WORK FOR IT ! We have No car payments or credit cards either.
Shut off our stupid cable bill 6 years ago when it got to $205 per month ! My phone is faster anyway and I get the AT&T senior plan for $65 pm unlimited everything.
People you can do it just change your mindset and pull up your sleeves and get those darn bills paid off. You will be happier in your old age when your living costs are low

[JBoya]

We paid ours in about 10 years. I liked the write off we got with the mortgage but had better usages for the cash like increasing our equity purchases, etc. The equities are now worth more than the house, so I think I made the right decision.

[rudyflores]

My wife and i goal is to pay off the mortgage early. We just bought our home in March 2023 and we follow Dave Ramsey baby steps. Working hard towards our goal.

[armandomedina]

This is so motivational to paying off my mortgage and great expiration on what you can do and how to look into things yourself. Thanks for the advice.

[trevorhoward]

Im 31 years old, my wife and i refinanced our house last year for 15 year loan. We are currently on track to pay it off in 9 years! I have the same mindset as you, if for some reason we both lose our job i want to know i wont lose my house.

[henrykieu]

We did the exact same thing. Mortgage paid off in 3 years. Looking at the loan summary motivated us to do whatever we can to get out of debt. Best decision ever.

[jtcommunication]

This is the ONLY legit video I have seen on how to pay off your mortgage in 5-7 years. Congrats and thanks!!

[JohnDoe-igyw]

Yup on track to pay off my house in next 3 years. Been here for 3 years already. Had a good down payment of 50, 000$ on a 315, 000$ house. I pay 700$ every month extra in principal and all tax returns and bonuses and side money goes to principal as well which adds up to around 15, 000$ a year.
We got no credit card and no car payments. Everyone can do it if you can control your spending habits and “I have to have it before anyone else” syndrome.

[CalmerThanYouAre]

Congrats on the pay off! Big goal accomplished! ✅

I actually went the other way and increased leverage when rates dropped in 2021. Wish I would have borrowed and bought more rental properties in hindsight! 😂

I’ll always keep my rental properties leveraged in order to mitigate taxes on investment income. However, I’ll definitely downsize and pay off my primary residence before entering retirement.

So many tax advantages to eliminating that primary mortgage and reducing the amount of income needed to live a “comfortable” life in retirement. You open up the door for lower medical expenses with ACA subsidies, Roth and HSA conversion strategies and even less taxation on social security potentially. Not to mention a lot less risk on the table.

With that said, the smart use of low interest debt took us to the next level financially, and a lot sooner than we’d have gotten there without it. Thankfully, my kids have been able to enjoy a few more blessings as a result.

Which ever way you go, there will always have been a “better” option. Turns out buying Bitcoin and not houses would have been the best use of my funds! Can’t win everything, all that time I guess. 😂

[jandoinc]

Thanks for the video! I'll start that journey right away.