Pay Off Your Mortgage Ahead Of Schedule – It’s More Important Today Than Ever Before

Pay Off Your Mortgage Ahead Of Schedule – It’s More Important Today Than Ever Before

As the U.S. finds itself as a credit risk, it is bringing down the financial well-being of all of its citizens. Because of this, it is more important to pay down your debt than it has ever been before. I realize doing this is easier said than done, but for many of us it can be done and in this article, we will discuss why and how.

already if having our credit rating downgraded as a nation doesn’t make interest rates rise, surely the stupidity of the people we have put responsible for the United States will at some point. The formula for saving the triple A credit S&P had granted this nation for over 70 years was to cut spending by $4 trillion. Instead, the House and the Senate passed a bill to cut spending by somewhere between 1 and 2 trillion dollars over the next 10 years. Of course, this wasn’t good enough to keep our triple A rating. Then again, had the House and Senate passed a bill to cut more, the president promised he would not sign it. Therein lies the source of the quandary we find ourselves in.

The slightly good news is it takes time for basic changes in the economies of nations to take keep up after a major economic event takes place. So, if there is any way a person could mathematically pay down his debt, there may nevertheless be time to assistance from doing so. Having little debt is very important in times of recession and extremely important in times of depression. This is because bad economic times just don’t generate the kind of household income that allows families to live in debt and nevertheless keep up onto their possessions.

In other words, it is not unheard of in nations throughout the world and already in the U.S. in times of recession that people need to start selling possessions just to sustain life. Let’s confront it, if there is no money, there will be no food stamps, there will be no welfare and there will be no relief from a government that is flat broke. In such times, poor people have to rely on charity.

consequently, in order to become less reliant on supplies of income that may not always be there, it is best to be debt-free. So, the big question is how does one pay off his mortgage? The answer is; there is no magic formula to do this. The only way paying down a mortgage ahead of schedule can be done is to simply pay additional principal off of the mortgage each month.

Though it sounds impossible, it is not. Each month’s mortgage payment consists of principal, interest and escrow withheld by your lending institution for funds needed to pay off taxes and insurance. In the early stages of a mortgage, the principal part of this payment is usually only $200 to $300; sometimes less. consequently, paying this amount in addition to your mortgage payment will pay off two months instead of just one. Also, if you pay double this $200 to $300 and pay this in addition to your normal payment, you will be paying three mortgage payments at the same time.

Yes, it sounds difficult and if you are out of work it will be impossible. However, if you nevertheless have an income and you really suck it up, it can be done. Many people have paid off 30 year mortgages in 5 to 7 years simply by using this formula.

It is very sad we now have to think in terms of the future being worse than the times we are living in now. This is especially true when I live in a country that used to boast anything was possible. While technically, anything is nevertheless possible, it looks like insignificant survival will be a struggle for at the minimum the near term. It is for certain, change has taken place in the United States.

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