June 11, 2008
Mortgage - from Morgue
How about another word lesson?
mort = dead
gage = murder
Collectively = a pledge.
For how long?
Isn't that obvious?
Don't pay till you die
Kill your mortgage, not yourself. All you have to do is accelerate mortgage principal payments. If you have extra money, put it on your mortgage. If you don't have extra money, borrow against your house to pay on your house.
It isn't as weird as it sounds. You're just exchanging expensive money (mortgage, compounding for 15, 20 or 30 years) for cheap money (compounding 60, 90, 120 days).
When you pay off your home sooner rather than later, you save tens of thousands of dollars in interest. Pay off your mortgage early.
Kill the mortgage, not yourself.