The reality you believe and the reality that is are not always the same thing. Take for example making mortgage or rent payments each and every month.
Most people believe that is just life and that you have to pay one or the other.
What I want you to do is stop. Step back. Think for a moment and ask yourself WHY?
Why do you believe that? Is it true? Are there any other realistically attainable options?
Let me help save you some time and trouble. There ARE other options and making perpetual mortgage or rent payments is a CHOICE but not the only choice. You can choose to stop any time you like and not make any more mortgage payments ever. That is also a choice. It’s just not one that you were aware you had – until now anyway.
You and I and everyone else in this country – and most other countries too – were taught, trained and repeatedly conditioned to believe in and follow societal norms. The trouble is that many of society’s norms are not in your best interest. They extract value from you at your expense and redistribute it to others, often without your full agreement or even awareness in some cases.
Let me ask you this. Do you know and understand what an amortization schedule is and how mortgages really work?
You may want to research that a bit if not, and it will blow your mind. Look at the amortization schedule and see how little of that huge payment goes toward actually paying down the balance – and how much goes to interest. Then look at the total amount you will pay if you make every single payment until the mortgage is eventually paid off. You will pay back every dollar borrowed – plus a massive amount of interest. Look hard at those numbers – and think about how you could improve your life for your family and yourself if you kept all that money instead of handing it over to that mortgage company month after month.
Mortgages are designed so that your payments go mostly to interest first for many years before it gradually begins to apply any meaningful amount to the principal. That means for the first several years you are making those huge payments you are just spinning your wheels and going nowhere.
To make bad even worse many people will NEVER pay off their mortgages because they are constantly enticed to refinance or to sell one home and trade up to a bigger more expensive one with a bigger mortgage debt – and a brand new amortization schedule. So the crazy interest payments just keep on keeping on – for life for a huge number of people.
That’s NORMAL and it’s an option you can choose to continue following if you like – or not.
There Are Other Options…
Despite conditioning to the contrary – you do NOT have to make mortgage payments if you don’t want to. But you will have to take drastic and extreme measures to extract yourself from the situation you are in. The question is not whether you can do it but rather whether you are willing to do it and then will you actually make the efforts needed to change your life.
Frankly – most people won’t.
The vast majority will dream about tiny houses and living on sailboats or some other fantasy but never actually do anything toward making it their reality. The same is so when it comes to getting rid of mortgage payments. It’s far easier to fantasize about than it is to actually do. So most don’t and won’t ever change.
What about you?
Are you happy with the fantasy – or do you want it to become your reality?
The Main Options Are …
- Go Tiny, Go Simple, Go Affordable – and Go NOW!
For those wishing to make it a reality and to do it very fast the best way I have found to do that is to get rid of the mortgaged home and replace it with another home that is paid for in full from day one. To do that requires thinking way outside the box you have been trained and conditioned to stay in – and it means going far outside your mental comfort zone.
You may have to select something extreme to live in temporarily – at least just long enough to get your finances and life in order. Then you can move up to something bigger and nicer if you desire – but it also will be paid for, mortgage and debt free from day one too.
What might you consider;
- Tiny House – You have heard of them – but have you ever seriously considered living in one yourself? Maybe now is the time. There are too many options to list – just search Tiny House Plans and get some ideas.
- Truck Camper – If you have a truck this is an option, especially if you keep it micro and build it yourself. You can also buy one but don’t get carried away and get a massively large one (expensive and HEAVY). Keep it as small and cheap as possible for now. Look at Carpi Campers, Glen L Marine designs “especially their Importer” camper plans.
- Travel Trailer – many available cheap, and you can also build one from plans if you like easily enough if you are determined and get a bit of training. Take a look at Glen L Marine designs and go to their camper section.
- Micro or Very small Houseboat – Look at “Diane’s Rose” and Atkins “Retreat” to get an idea of what I mean. Also look at Sam Devlin’s “Millie Hill”.
- Converted Cargo Trailer – cheap, quick, simple – and better than most factory travel trailers too.
- Van Conversion – Massive amount of information available and many people living in vans all over the world!
- Small House Fixed Foundation – Think of something you can build, possibly in sections or modules as you can afford it. The techniques are not much more difficult than building a storage shed and you can learn them all very quickly and relatively easily through workshops, seminars, books, videos etc.
Instead of me posting a bunch of links that may change – just do a google search and you can easily find these things. While you are at it look up Bob Well’s Cheap RV Living… which is a wealth of information for anyone contemplating extreme measures to reset their lives.
These are just some of the many many options available to you. I call all these things Little Human Habitats – which to me is anything that can be lived in long-term on an ongoing basis and has at least adequate accommodations to do that. It will provide shelter from the elements, relative security and a place for you and your things to be safe, a place to sleep, personal hygiene facilities, adequate heat and ventilation and a place to work – such as a table and place to sit comfortably to work on a laptop etc.
Beyond that, it can be as basic or as fancy as you can afford, need and like.
In general, these things will range in size from as little as 25 or so square feet up to about 1200 square feet for a small house on a fixed foundation. Keep in mind there are still other options too.
The basic idea is to choose something that works for you, get it, live in it to make sure you can handle it. Then get rid of the mortgaged house. But first you have to get your mindset and your personal financial philosophy right – otherwise, any progress you make will be temporary.
I know – all this sounds crazy and your brain may be screaming WTF and other obscenities. Give it time to digest and research it a bit, it may be how you change your reality and your life forever if you want to.
Another Way to Go…
If you are hooked on the general idea – but for one reason or another are absolutely unwilling to part ways with the home you are in, there are still things you can do. They will not work as fast or as extreme – but they will work if you work them.
You will need to learn how your mortgage works and the specifics of your particular lender. Next, you will need to begin making additional payments to the PRINCIPAL. Be certain these payments are made separately, recorded by you and verified by your lender that they are being applied to the principal balance.
How fast you eliminate your mortgage will depend on how motivated you are and how much money you can come up with for those advance principal payments. There are multiple methods and tactics to do that too. Decrease your spending in every other category you can, sell everything you have accumulated in your attic, basement, storage shed, closets and other places and put every dollar of it toward your principal. Stop buying crap – put the money toward the principle. Stop eating out – put the money… well you get the idea.
More Options…
You may also choose to buy or build a Little Human Habitat of some kind and put it in your own backyard, divide the yard off with a fence or with shrubs, potted plants or whatever works – then you live in the tiny house or whatever it is, and rent out your main house. The tenants rent will pay your mortgage in some cases, and then some. In other cases, it will only pay a portion of it – but ALL of that money could be applied to the principal if you choose to do so.
Will that work in every case? No.
Will it work in your case? You have to answer that yourself. It depends on your situation and on you.
Some people will say that’s not possible in any case. They are wrong. Others will say that is illegal! In some places, it is, in some places, it resides inbetween what is legal and what is enforced. Having said that it has been and is being successfully done – quietly – all over the country. Do your own homework and make your own decisions. Do NOT do ANYTHING that you are not comfortable with or are not willing to accept all risks for. If you put your LHH in the backyard and move a tenant into your house, if the local government (city/county) doesn’t like it – they may make you move your tiny home elsewhere. They may or may not also fine you for violating this or that arbitrary rule they have in place. So be very aware of what you are doing…
If you can’t stay on your own property, then look for some other place you can stay legally and cheaply. This too will vary by location. It may still be a route for you to go, and still allow you to rent your mortgaged home out and dump more money toward the principal much faster. For example, you may stay in an RV park. Yes, you have to pay – but pick the right one and it will be a minimal amount, especially during offseason.
Be aware that some places have laws or rules that you can only stay there for a specific number of weeks then you have to move. Find two or three parks and simply move from one to the other and back again. Any hurdle can be overcome if you want to. While you are at it consider why such manipulative and coercive rules exits and the motives of those who attempt to force your compliance.
Find a way.
Too many people just assume they are trapped and never try. Others try – timidly – and when they hit the first hurdle they quit, give up and go back to what they did before. There are multiple different ways to accomplish progress. Find a way that works for you and your family and commit to making it happen.
Consider taking my new course on Udemy too while you are looking into your options! How to Eliminate Mortgage Payments Forever
Whatever you decide and do I wish you well in your efforts as you choose your own course and build a better life for yourself and those you care most about.