Who wouldn’t feel worried about having to pay for a mortgage every month? It’s easier if you have a steady job, but what about when you don’t have much money? Having debts is a problem for many people these days. It would be nice to learn how to live without a mortgage, right?
A mortgage has been a burden for many families in these times of continuously growing inflation.
10 Ways To Live Mortgage Free
Paying off the last installment of your mortgage with a house 100% yours would certainly be a relief and an accomplishment. For those who want to avoid being burdened with a monthly mortgage, there are several ways to pay it.
Check out these options if they suit your circumstances, budgeting methods, and preferences, and learn how to pay off your mortgage better.
1. Move Your Way Up Gradually
Living in a luxurious 5-bedroom, 5-bathroom house would require heavy monthly mortgage payments. It is better to buy a house you can afford while keeping some cash reserves back for future use.
As you improve your financial situation over time, move to bigger houses and gradually improve your lifestyle. This strategy will allow you to afford the big house of your dreams at the cost of some years of patience, but the biggest benefit of it will be living without a mortgage which can save you money.
2. Build Your Own House
Many people nowadays prefer building their own homes to save money. It isn’t easy, but it is possible. Some companies, such as The Sears Catalog, sell kit homes for people to assemble themselves.
Half of the cost goes into building construction expenses, so if you can do it yourself, the savings will not put you in the red. Make sure that you hire professionals for jobs such as electric wiring and plumbing, as some local codes require licensed professionals to do such jobs.
3. Offer Rooms for Rent
If you have already bought a house on a mortgage, you can offer rooms for rent to pay your monthly payments to become mortgage-free.
Putting rooms up for rent might affect your private space, but for some, it is worth it in the long term, considering you will be mortgage free much sooner than expected.
It’s a great way to pay your mortgage without affecting your monthly income.
4. Live in a Tiny House
As tiny houses are much cheaper than traditional homes, living in a tiny house will enable you to live mortgage free.
The average cost of a small house ranges between $30,000 to $60,000. However, if that’s still too much, there are tiny houses with costs as low as $8,000. The cost of the house depends upon the amenities you choose to include. Fewer amenities mean mortgage payments can be easier and faster. Low cost means low interest, right?
Another cost-saving method is to build the tiny house yourself instead of buying it prebuilt from the market. It is one of the most cost-effective ways of living mortgage free.
5. Buy a Duplex or Triplex
A duplex or triplex is a home divided into 2 or 3 residences. These non-detached homes are much cheaper to build than 2 or 3 conventional houses, reducing the costs. The average cost per square foot of a 1-story duplex is around $110 to $180; you will pay half the price if you want to buy 1 duplex unit.
Moreover, if you buy a duplex or a triplex, you can rent out the other units to help cover the cost of your mortgage.
6. Live in States With a Low Cost of Living
The cost of living varies from state to state in the US. Real estate prices are quite high if you live in areas such as New York and Washington.
However, the cost of living would be much cheaper if you lived in states such as Tennessee, Kentucky, or Indiana. Mortgage rates here are so much lower than in those bigger states.
While moving to a lower-cost-of-living state is a very big life decision, perhaps you live near another state that offers cheaper real estate. That would mean living in a place with a lower mortgage while you can still maintain the life you have.
7. Start a Side Hustle
Starting a side hustle would require you to invest extra working hours, but it would quickly free you from your mortgage.
The income generated from side hustles can cover the monthly payments or pay your mortgage more quickly. These side hustles will really help you with those debt payments in the long run.
8. Find Good House Deals in the Market
It is the strategy most investors use for quick profits; find homes that require a lot of repairs and fixing.
The owners of these houses usually want to get rid of their houses to escape any repairing and fixing issues. You can buy these inexpensive homes and spend a little extra cash from your reserves to turn them into your dream house.
Just be aware that it will take some time and effort, perhaps also a monetary investment, to turn those types of houses into your dream home.
9. Sell Unused or Unwanted Home Items
You can increase your mortgage payments if you have other sources of income, such as sales from used or unwanted items from your home.
It’ll also have the additional benefit of decluttering your home while paying off your mortgage faster.
10. Live Out of the Country
Some countries have lower living costs, including home rentals, which could be an excellent temporary option for reducing expenses and saving money for your future home.
How to Live Mortgage Free
It is possible to live mortgage-free with any (or a few) of the options listed here. You need a solid plan and strategy depending on your particular circumstances, finances, and goals.
Having your own home this way may be different from how people usually approach home ownership, but ultimately, it’s your life and your choice to live stress- and mortgage-free.
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Founder of Spark Nomad, Radical FIRE, Journalist
- Expertise: Personal finance and travel content
- Education: Bachelor of Economics at Radboud University, Master in Finance at Radboud University, Minor in Economics at Chapman University.
- Over 200 articles, essays, and short stories published across the web.
Experience: Marjolein Dilven is a journalist and founder of Spark Nomad, a travel platform, and Radical FIRE, a personal finance platform. Marjolein has a finance and economics background with a master’s in Finance. She has quit her job to travel the world, documenting her travels on Spark Nomad to help people plan their travels. Marjolein Dilven has written for publications like MSN, Associated Press, CNBC, Town News syndicate, and more.