We should agree that buying housing using mortgage sucks because of the monthly payment that comes with it. Is it possible to buy a home in cash without a mortgage, get to know as you read further?
To some buying a house without a mortgage seems impossible, while some are well aware that it is possible to own a house without a mortgage.
Most structures built in Nigeria are without a mortgage, so Nigerians are well equipped with the mindset already,
For those who thought the only way to but own a home is to borrow money, you are getting it wrong.
When you look back at all the Interest you have paid to banks or that you are going to be paying you can go but there must be another option to solve your home buying process without the use of a mortgage.
How you can buy a home in cash without a mortgage
Let me show you how you can easily buy a home in cash without a mortgage.
A young man or woman can save every month towards home buying, let say at age 30 you have an income of $70,000 monthly.
A young man or woman who wants to pay for a house in cash without a mortgage can save every month towards home buying, lets say at age 30 you have an income of $70,000 a year.
Such a young man or woman must decide to live cheaply so that he/she can afford to buy a house with cash.
Maybe the person in question rents an apartment for $600 per month and decides to eradicate vacation or limit it going for the next five years.
Also, the same person but all she does in a budget and at the end of each year, the total money saved is about $30,000 and spent $40,000 each year.
In five years, the person has saved up to $150,000, without stress the person can pay for a house using cash without a mortgage.
In the same money saved there are monthly earnings that come with it which makes more money for the person, if it is a high-yield savings account, such a person could increase savings with a 2% rate of return or more.
At the age of 35 years, the person has owned a house that comes completely debt-free.
How can you live Frugal life to accomplish your goal?
It is possible to live on $40,000 per year with taxes, rent and everything, some are living below such an amount.
A perfect example is Jason and Danielle who live on $14,000 per year.
Jacob lives on $7,000 per year. You check their websites to confirm these claims. Don’t say it is not possible.
Why should you pay cash for a home?
The interest rate on the mortgage is the major reason why we think paying for a home with cash is better than a mortgage because the money saved on mortgage interest rates can be converted to something else that will profit you better.
Even if you consider going for a mortgage, getting a short term mortgage is better than the long term.
Let say you took a 30-year mortgage, from a math perspective: If you borrowed $250,000 at 4% interest, you are expected to pay $179,673 in interest! That is $10,000 per year in interest for almost 18 years.
Now imagine you have the interest with you instead of paying It to your bank or financial institutions who can grant you a mortgage loan.
You can think of the amazing things you want to do with money and have an awesome life instead of giving the bank such money.
We are not going against a mortgage loan for house purchase but we are only telling you it is better if you can save up for some years to buy a home. It is better than paying a huge sum of money on interest.