UNCONVENTIONALLY PAYING DOWN THE MORTGAGE EARLY! 🏡 Mortgage free journey!

welcome to another bushman family video today bailey wanted to be in the video with me she's really excited about the topic too today we're talking about paying off our mortgage i know it's super exciting and everybody is on the bandwagon just kidding is everybody on the bandwagon about paying off their house no but maybe if bailey listens and you guys listen then hopefully somebody can get some tips and we can all become debt free sooner i first wanted to talk a little bit about our story so our story is our family is debt free we have zero credit card debt no student loans and we own our car so besides our mortgage we uh have no debts and there goes bailey that's how fast yeah she'll be out of here i've always heard that you pay yourself first right so the way that we pay ourselves first is my husband's full-time job and my part-time job give us retirement benefits so uh we put a portion of our money into our 401ks and our retirement so i put about 25 of mine and my husband puts about 15 of his okay so before we see our money that's where it goes let's talk about our house we bought our house in 2015 we paid 300 000 for it we took out a mortgage of 230 000 so we had worked uh for about nine years to save up seventy thousand to put a down payment on our house so we did that and then we took out a 30-year mortgage with a four and a quarter interest okay so which wasn't bad in 2019 we both have pretty good credit um but that is a big mortgage especially since we only used my husband's income then and he has now changed jobs but his yearly was 39 000 and we took out a 230 000 mortgage so for about six months it took him to get a different job that paid more um we were pretty house poor so we scrimped and saved budgeted like crazy okay so then 2020 hit and everybody knows that interest rates plummeted so we went out and re-refinanced and we got i would say a pretty okay deal we refinanced in august and so what we refinanced for 2.99 um which compared to my parents i asked my mom the other day and their interest rates were crazy high and i think right now their interest rate is around seven percent so yes they should probably refinance but they are almost paying off their house so why would they do that just pay off your house right we took a mortgage for 2 30 we refinanced um we had to pay about four thousand dollars to refinance so now to this date our mortgage is 216 000 okay so we've paid off quite a big chunk in about two years almost two years and may will be two years so my husband and i have just been chipping away at it right so any extra we put towards the mortgage well hit and wasn't really sure about all of the craziness so from august when we refinanced all the way till january of 2020 i paid zero extra payments um oh the other thing i forgot to say is instead of a 30-year mortgage we refinanced to a 25-year mortgage so we took off five years of our mortgage which i thought that was great and our payments went down not by much i think they went back down by a hundred no eighty dollars a month they went down but we would save almost eighty thousand dollars in interest right by just refinancing and yes everybody needs to decide if refinancing is your thing how long you're going to live in the house uh do you want to pay the house down faster all of those things so i would say look into it talk to somebody i used a mortgage calculators online they really helped so to pay off our mortgage we still are a young family so i'm 35 my husband's 34 we've got two young kids and we still want to live a little we go on a family trip once a year we like to eat out um if you saw some of my other videos we decided to get a basketball hoop and a trampoline so we like to have things i am a month ahead on our mortgage so my particular lender does not do half payments so i've heard a lot of tips that if you pay half your mortgage uh at the first month and half of your money mortgage or the 15th a month for the next month then it whittles down your payments so uh with one of the stimulus checks i think in october i paid the next mortgage so we are a month ahead on our mortgage so with our paycheck our first paycheck in april i paid for may's mortgage so that's one way to whittle down your mortgage faster is to be do half payments or be a month ahead in your mortgage if you can i make sure that we have invested we pay all of our monthly bills our utilities our mortgage um what else gas for our car our cell phone our internet and then anything that is left at the end of the month then i do another payment to our principal of our mortgage so being extra principal so the reason why i do it this way is because my income is variable meaning i don't have a steady income that i get a steady paycheck that i get once a week or bi-weekly or once a month my income fluctuates so some months i have a lot of extra and some months i don't the other thing i wanted to say is that we have a three to six month emergency fund that is just sitting in a savings account all of those things we are protected as a family so we have an emergency fund we invest in our retirement accounts we invest in a brokerage account and i would not say we max any of those out by any means but we are steadily doing it and i started my full-time job when i was 25 so i have been investing since then so 10 years of investing and it's grown into a nice little retirement account and hopefully um it will continue to grow because it has i don't mean if i retire at 65 that's a long time in the market so hopefully we'll be rolling in it so we are doing those things we're investing and then we pay our expenses and then whatever is left is available to throw towards the principal of our house started in january re uh re-attacking the mortgage so we had an extra i think 300 in january so we put it that in january and then february we had an extra 500 so we put it towards the principle of the mortgage and then in march march was a crazy awesome month and i don't remember if we got three paychecks in march which i think is probably what happened set three paychecks in march i think so so i put out of our first paycheck 300 and then out of our second paycheck i put 900 so we sent a whole mortgage payment just to our principal and that shot down our mortgage a little bit in the middle of april and april's been sort of a big spending month we bought a trampoline we uh had a son do a baptism so we had a luncheon um a luncheon we had family over for lunch so we spent a little more and so i've only been able to put i think i put 323 dollars and something since to our mortgage so it's not very conventional but it is getting the job done it is whittling down so so far i have taken our 25-year mortgage and i have cut off four months of that and i think that's great so we're at a little less than 25 years and we will be mortgage-free well my husband and i sat down uh yesterday and we were talking about becoming mortgage-free and what we should do and i looked up how much it would cost to send a principal if we paid our house off in five years so i'm 35 if we were mortgage free at 40 however we would have to send almost 3 000 extra to our mortgage so that would not be possible however um side hustles and jobs uh we can just do month by month then i looked how long it would take us to how much extra we would have to send if we did a 10-year mortgage and that is a thousand dollars extra a month and some months that is doable some months it's not but if that is my goal to send a thousand dollars extra every month to the mortgage maybe we can do it sometimes utilities aren't as expensive sometimes they're more expensive sometimes we eat out less sometimes we eat out more but if we can get a thousand dollars extra to our mortgage then maybe we can be mortgage-free by 45 and that would be awesome anyway if you enjoy videos like this and tips and tricks on how to be frugal and budget and pay off your home early uh give us a like and a subscribe and we hope that you have a wonderful day can you say bye bailey bye can you smile i also like to say paying off your mortgage isn't fancy it's not uh the fun or the cool thing to do but i would say it is really rewarding i have seen what the potential is in investing and some people say invest more and then pay off your mortgage but for me one of my values is security and to be financially secure is a huge thing for me so whether we pay it off when i'm 40 or when i pay we pay it off when i'm 45 that gives us at least 20 years of earning potential mortgage free which would be a huge benefit to our lives right and i would say we are still investing at the same time and we're whittling away at the mortgage but i would not say that we're going gazelle intense but we are doing it and i think being able to have um being able to be mortgage-free will just bring a lot of peace and comfort and it will be able to show our kids the great things they can do too huh

Channel: The Bushman Family

Views: 2,245

Rating: 5 out of 5

Keywords: mortgagefree, debtfree, daveramsey, christineunfiltered, thebushmanfamily, mortgage, mortgagefreejourney

Id: c7RL1yq2nXQ

Length: 12min 19sec (739 seconds)

Published: Fri Apr 23 2021