If you think living without a mortgage is impossible welcome to the new world of living in small houses
Learn the phrase No More Mortgage and repeat it to yourself like a mantra at quiet minutes throughout your day.
What you think about right now and what you believe to be true today is exactly where you will be in the future.When I think the phrase, it sounds in my head like a battle cry. I can imagine a defiant mob running through the streets of my city expounding this phrase at the top of their voices.
- Income from a job is not guaranteed. We can see that clearly with lay-offs and redundancies in the current depressed economy.
- While organisations are very helpful in offering mortgages for people with bad credit history, they aren't really doing you a favour. Bad credit mortgage interest rates are always higher than standard interest rates because of the risk level posed to the bank. Higher risk equals higher interest rates for you to pay. Digging a deeper well for yourself in the long term leaves you beholden to the mortgage and the bank and that has very serious consequences for your financial well-being.
- Fluctuating Interest Rates - what you pay at the time of buying your house rises anytime the banks want to increase your interest rates = uncertain repayments for homeowners.
- Taking a second mortgage out against your already mortgaged home might seem a useful source of cash at the time but your steeper interest rate this time around comes hand in hand with double the risk for you should you situation change at any time.
- Families suffer - when adults need to work full-time, multiple jobs and overtime to keep the house, family time is limited while you're serving the needs of your mortgage and bank.
- Financial strain and problems cause relationships to fracture and health issues to flare or become even more serious from the stress and strain.
- Want to go on holiday a few times a year? Sorry, the bank needs you to keep working to pay off your debt for the next 30 years.
- Got a special hobby or pastime that you love but no money left for indulging your passion? Maybe next year ...
- A spate of bad health in your family means you need to stay home as caregiver but the bank still needs their money. No choice but to work and pay up or you're out!
- When your lifetime is 60-80 years, and you spend 20 years as a child, 30 years, at least, working to pay off your loan, it only leaves you 10-30 years to enjoy your life debt free. Hey! That's not fair or fun.
Rebranding the Home Owner's Dream
Quite a few raised voices, over time, would be needed to change the overwhelming idea that you must have a home loan - a large and expensive one - to buy a house/apartment.
So, the No More Mortgage concept may come at you as a prospect too hard to arrive at anytime soon. That's ok. We all come here from differing places and financial situations.
By no means do I suppose you should up sticks and change without consideration for what is best for your own personal situation.
As there is already a rapidly growing small house and tiny home community, there is a lot of information on becoming mortgage free and living within your means, without the need for credit. You might find one or two bits that are interesting to you or you may just jump right in and embrace the small house and no more mortgage revolution. Whatever works for you!
There are many large and small steps to rebranding the home owner's dream that we can take from this forward-thinking community of people. I'm forever scanning the web for new and useful ideas for frugalizing my own life as well as that of my visitors. People in this community are so industrious in their ideas that I'm in awe.
As with everything, small steps often make the process to having No More Mortgage! easier to bare and give you the incentive to stick with the changes long term.
Build and Own a Home Free of Debt:
Steps to Avoid Mortgage, Refinancing and Credit
You might imagine that I'm going to tell you about some special, and as yet unheard of, way to pay your house loan down faster than usual, leaving you free of a mortgage and into full ownership of your home.
Not true - I'm no banker or finance whiz. The whole concept of No More Mortgage! is to eliminate the mortgage concept as the first option when building a home, be it big or small.
What I am going to do is to give you steps to put yourself in the position where you don't need a mortgage to build your house at all. It's no wish or faint hope. People the world over are doing just that in our small and tiny house community.
It's an intriguing alternative that doesn't pop up in general society at all. When you start looking around and talking to different people of a similar mind to yourself or reading about it in online communities, the prospect of a viable alternative becomes very real.
Most of us have a set income, something that doesn't vary too much either way. However our cost of living doesn't work in quite the same fashion - it always goes up!
With the cost of living rising every day, all of our expenses eat into the money that we might otherwise use to do things that we love to do.
The No More Mortgage! concept seeks to change that.