How We Plan to Pay Off Our Mortgage in 5 Years

5 Year Mortgage Goal

We have decided to share our goal to pay off our mortgage in 5 years for accountability and to encourage others in their personal finances.

You see, we’re a family of 5 living on one income. While my husband makes a comfortable income, we’re not rolling in money. Our monthly budget is comfortable – we don’t feel we’re doing without but we do have to spend carefully and watch where our money goes.

Managing your money wisely helps you financially.

You do not have to have a large income to succeed with personal finances.

Our goal to pay off our mortgage in 5 years seems like it is an unattainable goal for a family living on one modest income. However, there are several factors that make this goal a realistic one for our family.

How does a young family living on a budget think they can pay off their mortgage in just 5 years?

1. We have no other debt.

We both graduated college debt free and we never have had credit card debt or car payments. The lack of these debts allowed us to focus on saving for a house downpayment upon graduation. 

2. We own our vehicles.

We began our marriage driving vehicles that our parents gifted us before college. We saved for years for ‘new’ vehicles and our savings coupled with the money from the sales of our old vehicles allowed us to pay cash. Our ‘new’ vehicles are both older models, I drive a 2004 model minivan and my husband drives a 2002 pickup.

3. We put 20% down on our home.

A 20% downpayment saves us from paying private mortgage insurance. And, the exciting part of a large downpayment meant that we owned 20% of our home the day we moved in!

4. We currently own almost 50% of our home.

Our 20% down payment coupled with regular extra principal payments for 2.5 years plus refinancing to a lower rate has really knocked down principal. We currently have paid almost 50% of the purchase price in the 4 years we’ve lived in our home. We believe we can buckle down and pay the remaining 50% in the next 5 years.

5. We bought a home below our price range.

We qualified for a mortgage amount that was nearly twice the amount of the purchase price of the home we’re in. Instead of buying a house at the top of our mortgage qualification range, we chose to purchase a modest house. Choosing to live in our smaller home frees up money each month to pay towards the principal.

6. We have budgeted extra principal payments.

We reworked our budget when we set this 5 year goal and have budgeted a couple hundred dollars each month to pay towards principal no matter what. Intentionally budgeting money towards the extra principal is playing a huge role in reaching our goal. 

7. We’re sticking to a budget.

We have a written budget and we’re sticking to it!  We’ve budgeted our entire marriage but we’ve had a tendency to cheat. We’ll overspend in certain categories and then move money around from other categories to cover our overspending. While we haven’t gone into debt doing this, we’ve been ‘stealing’ from other areas that could be used to pay extra towards our mortgage at the end of the month. We’re committed that when the money is gone out of the budget category, there will be no more spending.

8. Shopping is no longer a hobby.

Shopping at thrift and bargain stores used to be a hobby. We were finding all kind of great deals and ‘saving money’ on things we ‘needed’. If you stay out of stores, you won’t be tempted to spend! I’m convinced that succeeding financially has a lot to do with controlling consumer spending on smaller purchases.

We believe that paying off our mortgage in 5 years is possible for our family.

This is a stretch goal for us but we think we can reach the goal!

What’s your goal?

Are you trying to pay off your student loans? Finally ready to cut up the credit cards and get them paid off? Are you saving up for a house downpayment?

No matter where you are in your financial journey, the decisions you make today will have an impact on your future.

Set financial goals and work towards them.

Some goals may seem impossible today but with focus, discipline and a little frugality, they can be achieved.

Do you have financial goals? 

responses to “How We Plan to Pay Off Our Mortgage in 5 Years” 15

  1. I love this! I find it inspiring that you have a 5 year goal for paying off your mortgage. Coming up with a game plan for paying off our mortgage early is something we've been mulling over. Your post inspires me to take the time to come up with a concrete plan to make it happen.

    1. Setting the goal really lights a fire!! We've also broken it down and have an exact dollar amount we have to pay each month to reach the goal in 5 years. It's $300 over the amount that we pay towards the principal as part of our mortgage payment and our extra principal that we have budgeted each month so we're going to have to be extra frugal and creative but we're up for the challenge! We've already reached our monthly goal for July and hope to exceed it!

      1. Hi Rachel,

        My husband and I have been paying extra toward our mortgage principal for a few months now, but I’m unclear on how much time this is cutting off our mortgage. How did you figure out the exact dollar amount you need to pay each month to reach your goal? I’m a new reader and really love everything you have posted here. My husband and I have a two year old son and are expecting identical twin girls in October. We are working on cutting excess spending and really hoping to minimize our mortgage debt as quickly as possible. Thanks for all your wonderful posts!

        1. First, congrats on your twin daughters!! How exciting!! Crown Financial Ministries has several great calculators on their website, one is a mortgage prepayment calculator that helps you figure out how much you need to pay each month. Here's that link:…. We have broken our goal down and have a monthly goal that we are aiming for each month (we were $50 over the goal last month, yay for momentum!!!) Best wishes as your family attacks your mortgage too!

          1. Thank you so much for the info Rachel! Glad you were already ahead of your goal, that’s awesome! Look forward to future posts, your children are beautiful.

  2. Very inspiring! We're in the adoption process right now so once that is completed, we hope to tackle our mortgage next! Excited to follow your journey–I'll be cheering you on!

  3. Sounds like a great goal! While we don’t have a mortgage (yet), we have set a huge goal to be DONE with our $60k debt by the end of next year. I’m not sure how we are going to do it, but I know it comes down to my attitude about spending even in the small things. What you said is so true about just staying out of the stores :). I would love to see updates on your progress so I can cheer you on!

    1. That is a huge goal but it sounds like you are on the right track!! And, you're so right, your spending attitude is what makes the difference. I frequently remind myself that every dollar I don't spend on something that isn't a necessity is a dollar that can be applied towards our mortgage and that's motivation to not spend frivolously! And, the bonus of staying out of stores and only buying necessities is there's not a lot of excess clutter in your home! 🙂

    2. Big goal, would love to hear how this went for you, Blythe. Did you meet with anyone to help you plan out getting rid of that debt? Did you guys sit down and plan everything out or just sort of wing it?

  4. We have three kids under 2 (twins and a nb) and we get asked all the time when we are going to move to a bigger house. I love my small house! Less stuff, less to clean, smaller utility pmts and most of all smaller mortgage. I always say that we have 7 years left until it is paid off and it will look whole lot bigger once we don't have the mortgage pmt sitting over us! What is your next goal after it is paid off? For us, we want to start putting money away for our kids' college fund and travel more.

    1. Sounds like our lives/lifestyles are very similar! Travel is definitely a mortgage free priority for us, our dream is to take our kids on a cross country road trip in a few years! We also have a dream of owning a small farm so we hope to save up once our mortgage is gone to be able to purchase a farm/modest home.

  5. So proud of u guys! Debt free. We are in are late years,we want pay off are mortage. Balance $161000.00 at 4.75& fixed,owned are house 9 Started with 30 year mortgage.

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