Baby Step 6.0: Pay off house EARLY

NOTE: Making 1 extra payment per year (or 1/12th of a payment extra each month) will reduce the number of payments on a 30 year mortgage by 4 years or more.

Our future plan:

  1. We are going through the process of refinancing our first mortgage. The second will be paid off in a matter of months, woohoo! Once that is complete we will follow straight down the Baby Steps and save 3 months emergency funds, resume retirement contributions, and start a college fund for our son.
  2. Our stretch goal for Baby Step 6 is to pay the house off by the time my wife is 40. When analyzing the refinance, I determined that if we can roll the monthly savings from refinancing, around $100 per month, and then add an additional $375 per month, we could pay it off in a little over 14 years and would meet our stretch goal. I get excited just thinking about be completely DEBT FREE!

Stay tuned, the next and last Baby Step is the best…

Previous Posts:
Dave Ramsey's Baby Steps - Expanded
Baby Step 0: Live like no one else…
Baby Step 1.0: Save $1,000 in Baby Emergency Fund (BEF)
Baby Step 2.0: Do debt snowball, paying all your debts from lowest BALANCE to highest

Baby Step 3.0: Save 3-6 months EXPENSES in a Fully Funded Emergency Fund (FFEF)
Baby Step 4.0: Start Contributing 15% of you paycheck to retirement

Baby Step 5.0: Save for kids college fund

Coming Up Next:
Baby Step 7.0: Build Wealth & Give - … so now you can live like no one else!!

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