Debt Discipline

How a family of five deals with Money, Budgets, and Debt.

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What You Need to Know About Reverse Mortgages

December 18, 2016 Brian

Please enjoy this contributed post.

If you are looking for reverse mortgage information, you have come to the right place. We all know that there are plenty of different types of mortgages. There are regular mortgages, than second mortgages, and then you also have the reverse mortgages. It can all get quite confusing to know which one is the right one for you.

Today we are going to talk about reverse mortgages.

mortgages

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Filed Under: Mortgage Tagged With: Contributed Post, Mortgage

Money Making Tips to Offset Your Home Mortgage

July 26, 2016 Brian

It’s a great feeling to own your own home, but every now and then, unexpected expenses—whether your AC goes out in the middle of the summer, or your plumbing needs to be upgraded—can be majorly stressful. We believe that a  great way to prepare for unexpected financial setbacks is to establish an additional source of income. You don’t have to take on a second job, either. There are plenty of ways to make extra cash without disrupting your normal routine, and some of them don’t even involve leaving home!

home

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Filed Under: Housing Tagged With: Guest Post, Mortgage

Retire Big by Going Small: Downsizing Your Home in Your Golden Years

July 9, 2016 Brian

Most of us would welcome the prospect of heading off into the sunset and spending our golden years of retirement with enough money to do what we want with all that spare time available. The problem for a fair percentage of us is that money can sometimes be an issue in retirement, especially if a lot of your cash is tied up in your home, which is why downsizing can make a lot of sense.

If you are searching for a retirement property you can start doing pricing information research online. In the US you can use sites like trulia that provide information on each state. If you are looking to retire overseas, you will find similar services. When researching house price information in the UK you can obtain additional info by Entwistle Green for example, and see how you just might be able to retire big by going small.

Plenty of Good Reasons

When you start to look at the arguments in favor of the idea of downsizing, it can quickly look to be quite a persuasive argument, even if you are really happy with your current home. The truth of the matter is very often that many families have plenty of scope for downsizing their living space, without necessarily cramping their style in the process.

The average size of a house has more than doubled over the last sixty years but the average family size is much smaller, which means that in comparison to previous generations, you are actually living in a much larger space than you really need.

Nothing wrong with comfort and space around you of course, but the argument of not having enough room for all of your things if you downsize, wouldn’t look too convincing in the eyes of previous generations of your family.

golden years

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Filed Under: Retirement Tagged With: Guest Post, Mortgage, Retirement

How to Pay a Mortgage Off in just 10 Years

February 21, 2015 Brian

Please enjoy this guest post from Liam Edwards.

If you have ever tasted the air of rented places, then you have also probably considered taking a loan or a mortgage to buy your own place. Renting an apartment or a house is what most of us do when we are in our twenties or even thirties. But as we grow older and start a family, our everyday life demands a more serious approach. Having a baby and being exposed to capricious or whimsical homeowners is not an option. That is why the real estate market is so strongly bonded with family life and the overall economic situation. Once you have gathered all your courage and made a decision that you are going to get a loan from the bank, you feel that you are finally going to settle down. However, this is a real Occam’s razor and it can develop in many ways.

Slow and Steady Wins the Race

The best option is when both you and your partner have steady jobs and uninterrupted monthly incomes. No matter whether your mortgage is signed to ten or thirty years, some professions secure less stress and mess and more relaxed mortgage payments. Still, you should never relax too much, since the global economy has been currently unpredictable. Paying off extra while you are on the winning side, is imperative to early mortgage repayment. If your monthly installment is $400, try to pay back at least $500 a month. It is not a huge difference to the bank account, especially if you are married and you both work. However, with less loan, each month comes less interest repayment and more principal payments.

Rocky Feet, Shaky Wages

The first paragraph does not describe an average John Doe in his or her pursuit of getting a home. Most of us strive to gather the money for our monthly duties towards the mortgage loan. The burden of this long-term commitment often kills the joy of living in your own place. It is not yours until you pay the last installment. Consider the added payments to your loan with an additional ‘part-time’ job. In doing so, the most important thing is that the additional money you earn is not wasted on intangible things, but saved and used for paying your mortgage installments and even adding more than the contract demands. With each new amount of money above the prescribed minimum payment, you will feel less obsessed with it and closer to the state of really possessing your home.

mortgage

More Years, Higher Payments

It’s no secret – the longer your term, the more interest you will pay. It’s often better to pay the mortgage off before investing elsewhere. Taking out a longer-term loan and paying the amounts that would suit a shorter one, would be one way to maximize principle payment and reduce the amount of interest you will pay. Some banks will let you do this, others will not. For instance, you buy a house in wonderful suburbia and get a 25-year mortgage. However, you make your own calculation and see how high an installment for a 10 or 15-year loan would be. Then, you just pay that amount every month. In case you earn more money, you are able to speed up the whole paying process by transferring larger amounts of money into the bank’s account. On the other side, less fruitful months still leave you the option of paying the contracted sum.

Mortgage and Home Maintenance

Many of us commit their lives to mortgages and banks. In fact, many after paying for one house (or even before they do) invest in another house and rent them out. The major difference, in this case, is that you slowly require more and more property management, which can be costly, but it’s a great way to delegate a job most people do not like:

  • Ensuring rent is collected.
  • Managing the property’s tenants and getting the selection right.
  • Ensuring the property is professionally cleaned after tenants leave.

In any case, paying your mortgage off in 10 years is not an easy road and renting a property out is often a more expensive way of doing this. It can take hard work and dedication to do and it can lead to neglecting the reason why we took the mortgage in the first place. That aside, in the long run, we can all benefit from living rent-free, it might just take some solid dedication in the process. That is the risk we accept when taking a mortgage in the first place.

Filed Under: Guest Post Tagged With: Money, Mortgage

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about us

Hello, I’m Brian and this is my family. I started Debt Discipline as a way to help keep us accountable as we pay off $109,000 worth of consumer debt. Now debt free, my mission is to help our three children prepare for their financial lives, as well as others. I hope our story will inspire and motivate you to take control of your money. Let me know how I can help!

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