Keep it small!
The smaller the home, the cheaper it is to heat and cool. It prevents you from spending on stuff you don't need. It keeps life simple.
Its about finding a house size that works for you now. No bigger.
Here is the cool thing- if you keep it small then you may be able to pay for it out of pocket. That would mean no mortgage at all!
Within the next few weeks, I will be posting floorplans of simple to build homes that are big enough.
These plans are open for you to use and modify to your liking. I will ask you to email me though and let me know you are using them. I can also send you a CAD file if you like. Just ask!
Have shrinking.
Sunday, December 7, 2008
What does it mean?
Do you know the actually meaning of the word "Mortgage"?
It actually is a derivative based on old French.
"Mort" means death.
"Gage" means Debt.
So it literally means "Death-Debt"!
Why do we do it?
The main reason people have mortgages is because it is the only option presented to them. Think about it- if people were told that there was another way to own a home without paying huge interest, don't you think they would at least listen?
The Mortgage game.
The first thing a realtor will tell people when shopping for a home is to get a pre-approved mortgage. This is done to speed up the buying process and to find out how much home a customer can afford. The problem is that when most people hear how much the bank says they can afford, then they start tolook for homes in that range regardless if that is too much home for them. It is selling the customer a packaged dream. If the realtor agrees with the bank that this is what is good for me then why should I argue? "Just think of how jealous everyone will be of my home..."
Do you realize how much money you are handing over to the banks for the privilege of providing you financing? Even with interest rates at an all time low, a bank will make in interest payments alone almost the exact same ammount they lent you. So, a 25 year, $250,000 mortgage at 6% will net the bank apporximatly $230,000 more in interest payments over the term of the mortgage. So over 25 years that $250,000 house actually cost you $479,000. And that is only if the intest rate stays this low!
Very few people stop to ask if they need to spend all the money the bank will finance. Very, very few will ask if they need a mortgage at all.
It actually is a derivative based on old French.
"Mort" means death.
"Gage" means Debt.
So it literally means "Death-Debt"!
Why do we do it?
The main reason people have mortgages is because it is the only option presented to them. Think about it- if people were told that there was another way to own a home without paying huge interest, don't you think they would at least listen?
The Mortgage game.
The first thing a realtor will tell people when shopping for a home is to get a pre-approved mortgage. This is done to speed up the buying process and to find out how much home a customer can afford. The problem is that when most people hear how much the bank says they can afford, then they start tolook for homes in that range regardless if that is too much home for them. It is selling the customer a packaged dream. If the realtor agrees with the bank that this is what is good for me then why should I argue? "Just think of how jealous everyone will be of my home..."
Do you realize how much money you are handing over to the banks for the privilege of providing you financing? Even with interest rates at an all time low, a bank will make in interest payments alone almost the exact same ammount they lent you. So, a 25 year, $250,000 mortgage at 6% will net the bank apporximatly $230,000 more in interest payments over the term of the mortgage. So over 25 years that $250,000 house actually cost you $479,000. And that is only if the intest rate stays this low!
Very few people stop to ask if they need to spend all the money the bank will finance. Very, very few will ask if they need a mortgage at all.
Small Mortgages Rule!
Hello all! This blog is dedicated to all those people out there who want to live mortgage free. It is possible! People do it every day.
Most of us go to work because we are trying to catch up on our bills like our gas, electric or water. We fill up our McMansion's with furniture we never sit on, clothes we never wear and useless gadgets. The kitchen is full of appliances bought on late night tv that gather dust in the cupboards. Half the basement is used to store all the stuff we don't. We actually live in only a few rooms in the house all the while heating and cooling the whole building. Not to mention the taxes we pay on all that extra space.
Imagine how easy it would be to live if you did not have to live in fear of losing your roof. Imagine the freedom that would give you in your day to day life. Loss of your job would not mean a loss of your home- it just means you need a new job.
You could even take it one step further and grow some of your own food. Or produce your own electricity. And collect your own water. Why not? These goals are not difficult. They are all attainable. If you take your time, plan well, and live simply it can be done with a very small mortgage- or none at all!
Most of us go to work because we are trying to catch up on our bills like our gas, electric or water. We fill up our McMansion's with furniture we never sit on, clothes we never wear and useless gadgets. The kitchen is full of appliances bought on late night tv that gather dust in the cupboards. Half the basement is used to store all the stuff we don't. We actually live in only a few rooms in the house all the while heating and cooling the whole building. Not to mention the taxes we pay on all that extra space.
Imagine how easy it would be to live if you did not have to live in fear of losing your roof. Imagine the freedom that would give you in your day to day life. Loss of your job would not mean a loss of your home- it just means you need a new job.
You could even take it one step further and grow some of your own food. Or produce your own electricity. And collect your own water. Why not? These goals are not difficult. They are all attainable. If you take your time, plan well, and live simply it can be done with a very small mortgage- or none at all!
Subscribe to:
Posts (Atom)