A $15 Monthly Mortgage Payment?

The typical first time buyer does what everyone else does. They get preapproved and start looking at homes that match their criteria. Once they find and fall in love with a home, they happily purchase the home and start their long future of making monthly mortgage payments.

These mortgage payments consume a significant portion of their income for years. This means they’ll be going to work simply to make their monthly mortgage payment leaving little money left over for shopping, travel and fun. This monthly mortgage payment will restrict their freedom and choices as they have to ensure they generate the income required for each monthly payment.

The good news is there is another approach. A different path to home ownership.

Believe it or not, you can buy your own home and have someone else make your mortgage payment.

Imagine what it would feel like to have someone else pay off your home for you? If you’re renting right now, you’re paying off someone else’s mortgage. You go to work each week to send them a check. They use your money to get rich as you pay the mortgage off on their property.

Well, you can play the same game and have someone else go to work to pay your mortgage! Depending on the home you purchase, you may be able to have someone else pay the majority of your entire mortgage payment.

What would feel like to live without a monthly rent or mortgage payment? What would you do? How would your life look and feel? Would you save more money? Would you travel more? Would you start your own business? Would you decide to work part-time and spend more time on your hobbies? Would you have less stress? Would you be healthier? Really, what would you do? It is an interesting question.

Here’s how to buy your own home and have someone else pay your mortgage…

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This home is a two-family home located within walking distance to downtown Willoughby listed for sale at $84,900.

This is an up and down duplex. The basement is shared between each unit for storage. Each unit has two bedrooms and one bath. Both units offer an enclosed front porch. The home needs some work, but would make a great investment because it is located near the popular restaurants, bars and shopping in downtown Willoughby.

Someone looking to live for free could purchase this home for $80,000 with a 30- year mortgage. With a 30-year fixed interest rate is 3.85%, the monthly mortgage payment would be around $355. We’ll have to add insurance and taxes to this to see our total house payment. We estimate the homeowners insurance to be $50 a month and the taxes are around $210 a month. The total house payment with taxes and insurance is estimated at $615.

Each unit in this home currently rents for $600 per month.

This means you could buy this home and move into one of the units. Your total house payment would be $615 per month. You would collect $600 a month from the rented unit leaving you with a $15 a month mortgage payment.

A $15 mortgage payment? Yes.

With each mortgage payment, you would be paying a portion of interest and a portion to reduce the principal balance of the loan. With this mortgage and interest rate, the portion of your monthly payment going to the principal balance of the loan would start at $110 each month and would increase over time. This means you would pay $15 out of your pocket and your loan would be paid down $110! You won’t find a better investment opportunity anywhere. Trust me, I’ve looked.

But wait, it gets better!

Let’s say you buy this home and live in for 5 years when you decide to buy something a little larger. Instead of selling this home, you simply rent the second unit to a new tenant. This new tenant pays $600 each month in rent. Now you’ll be collecting $1,200 per month in rental income. Your total monthly mortgage payment is still $615 providing you with $585 of extra income each month. You can use this extra $585 of income to help pay the mortgage on your 2nd home!

Or maybe you simply decide to take a year off of work and travel. You could rent your unit to someone else and you’d collect $585 a month to use towards your travel expenses. Having someone else pay your mortgage provides freedom.

Another option for this extra $585 per month would be to use as a monthly contribution to a low cost index mutual fund. This $585 per month could compound into significant wealth over time.

You don’t have to copy what everyone else does. You don’t have to be stuck making a monthly rent or mortgage payment out of your pocket. You can structure your life differently and enjoy freedom in the process.

NOTE: If you would like to receive a free list of multi-family homes listed for sale similar to the home profiled in this article, send me an email at:  ro*@di****************.com and I’ll email an updated list of homes to you.

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