Are you thinking of buying a house? Aside from the tax deduction on home mortgage interest, there are other benefits to owning a home. Assets baby, assets! But that mortgage. Jeez. Thousands of dollars a month for decades is a hard pill to swallow. But it may not have to be that way. There may be a way to pay off your mortgage faster and reduce that decades of time to a few years. Check this out.
Consider a house with a basement apartment. When looking at prospective houses, tell your broker that you want a house with a basement apartment or a basement that can be easily converted into an apartment. Now if you want to get really aggressive, rent out the main part of the house and live in the basement apartment. I know. Mind blown right? You thought I was going to say rent out the basement apartment and live in the main house. A few years of sacrifice could pay off that mortgage of yours super quick. Now I know many of you will say, “I have a family, I can’t fit all of us in a basement apartment.” If that’s the case than reverse the contents of my trick. Live in the main house, rent the basement apartment. The point to take away from this is somewhat obvious. Your regular monthly mortgage payment, plus the rental income can drastically reduce the amount of time it takes you to pay off your mortgage. So you pay the normal mortgage payment and use the rental income to pay down the principal and VOILA! The mortgage interest savings can also add up to a boat load of money savings as well.
If you already own a home, consider investing a few thousand bucks into converting that ugly laundry room with the worn couch and old television into a nice studio for an up and coming young professional. Basement studio apartments in this area start at around $1000 a month and can be much more depending on the neighborhood and how nice it is. To sum it all up, becoming a landlord can help you get rid of that pesky mortgage faster than you think. If you have any questions on this, feel free to contact our offices. So that is one way to pay off your mortgage faster. d2 signing off.