How To Pay Off A Mortgage In 5 Years

Ms 99to1percent

Blogging about Personal Finance along with a little touch of humor. Immigrant who started from the bottom and now I’m here…to tell my story, inspire and learn from others. Paid off $40K in student loans before graduating. CPA. Saved a $100K emergency fund in my 20’s. Hopping to pay off $500K+ mortgage within 5 years at 39. Hopping to become financially independent at 45. Happily married. Mom of 1.

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27 responses

  1. love spell says:

    Hi there,I log on to your new stuff named “How To Pay Off A Mortgage In 5 Years – 99to1percent” on a regular basis.Your humoristic style is awesome, keep doing what you’re doing! And you can look our website about love spell.

  2. Miss Mazuma says:

    Hey – thanks for the mention!! I am the poster girl for what not to do in real estate. 🙂 Of course, with that lesson I learned exactly what to do so it was totally worth it!!

    Question – I don’t know how it works in Canada, but here in the states if your get your house reappraised and the value has gone up (as yours has) so your loan to value is over 80/20 then you can drop the mortgage insurance. Is that a thing there? That could save you a bunch in the long run. Either way, keep it up. You guys are kicking ass!!

    • Hi Miss Mazuma, we are not as lucky as you guys. In Canada, the insurance fee is a non-refundable, one time fee that’s “front-loaded” on the mortgage and added to the balance. The good news is it’s portable should someone change houses and they still don’t have 20% down payment. They wouldn’t need to pay the fee again. However the government might change the rules as they are introducing new rules/changes every few months trying to cool down the hot Canadian real estate market.

  3. Mark says:

    Hurrah for you! For others trying to pay off early here is a calculator which will tell you how much extra you need to pay each month to pay off on a particular date

  4. Verle Ellis says:

    Interesting and helpful. Thanks!

  5. eric says:

    Great post. Congrats on the plan. All of your choices (even D) are great ones. Just don’t let the new baby expenses throw you off track.

    As a US resident I struggle with the arbitrage of mortgage balance vs. investment funds.

    Tax deductibility, low interest rates, and good stock market returns have made my high mortgage balances the right call for the past several years.

    Freedom from debt, guaranteed rate of return, and planning not having a house payment in retirement are the counter arguments to the above.

    Everyone needs to make their own choice as to how to best reach the ultimate goal of financial independence.

    Thanks for the great website and wonderful attitude!

  6. Hi Eric,

    Thanks for stopping by and commenting. Yes, everyone has to make their own choice as long as it’s choice they can live with. There’s really no right or wrong answer.

  7. Thanks for the mention Ms 99to1percent, and congratulations on your financial success!

  8. That was a really helpful post. Thanks!

  9. Jeff says:

    One of my coworkers asked if she should pay off her mortgage. Her accountant said to keep it because of the tax deduction. My answer was to fire her accountant. This is one of the most common myths about money I hear. I said you want to give the bank 10k to avoid giving the government 3k. Instead, give your 401k and you get the same net result, except YOU are 10k richer. When we bought our first house, I had read a strategy to pay off your mortgage of in half by doubling the principle payment. I remember my brother, who I respect highly in these matters dismissed the idea and said that it would not work. We paid the extra principle every month and it was on track to payoff in 15 years. As our income went up we ramped up our payments and paid it off in 11 years. I highly recommend Dave Ramsey also. One point that he brings up about debt including mortgage is that it frees up you salary for wealth building. Once your house is paid off you can invest the previous payment. If Mr and MS99to1 invested what you are currently paying, you would have a million dollars in seven years.

    • Wow, congratulations on paying off your mortgage in 11 years! That’s so inspiring. Feel free to reach out through the contact form, should you want to guest post for us and let us know and our readers in detail how you were able to do it!

  10. Cory Fawcett says:

    Nice article. I did this myself. I paid off $500k in less than 6 years and have had no personal debt since 2001. Wrote about it in my book The Doctors Guide to Eliminating Debt. I will vouch for debt free being a better life.

    Dr. Cory S. Fawcett
    Prescription for Financial Success

  11. Dash2Retire says:

    I like all of your contingency plans. Nice to have options!

    If you don’t mind sharing your living space, you could rent out a portion of the home which makes the mortgage interest tax deductible in Canada. That is a great option for some people and allows them to pay off the mortgage faster and claim the interest on taxes.

  1. November 16, 2017
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  5. February 26, 2018

    […] we are trying to pay off our $500K+ mortgage within 5 years by 39 years. We are halfway through and on track. It’s very tough and challenging especially that we just had […]

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