How to Buy That Home with No Mortgage

How to Buy That Home with No Mortgage

 

What?  Buy a home and not have a mortgage?  Who can afford that?  Only the Rich and Famous? 

 

Yes, it can be done, it's not the easiest thing in the world, but it's entirely possible.

 

What if five years from now you were sitting in a reasonable paid for house. No mortgage to speak of, no PMI, or anything like that.  Imagine how much money you could save a month for retirement and for your kids' college!

 

The mathematics of this plan are rather simple, yet the plan is very difficult for many people to do because it requires patience and hard work.  These two commodities are not very common in the world today.  People buy homes they can't afford with terrible mortgages they shouldn't have gotten into just so they can get their dream home.  People have forgotten how to say no and how to work very hard.  Instead people take the easy way out and pay off their homes over the next 30 years.

 

Here's how it's done. 

Save a lot of money.   Most people have gotten used to exhorbinant lifestyles and aren't willing to cut back on their expenses, but you can easily save almost half of your expenses.  You might not be able to go out to eat, go on vacation, or buy a bunch of crap you don't need anway, but you'll actually have money!  If you combine this with an extra job, you'll easily be able to save $20,000 a year or so.  Over 5 years, you have over $100,000 to pay cash for your first modest house.  After that you can move up by saving cash and paying to move up in house.  It's not a very popular way to go, but if you have discipline and know how to work hard, this is definitely a route to success.