Get Out of Debt Guy

How Can I Pay Off My House in 6 Years?

Posted October 31, 2013

WRAL Reader Question

Dear Steve,

I'm a single parent with one child in college and I just refinanced my home for 20 years.

I want to know can you tell me how to pay my home off before I retire in the next 6 years.

Glenda

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Dear Glenda,

Not wanting to assume I'm afraid I'm going to have to state the obvious. The logical way to achieve your goal would be to start with dividing how much you owe on your house by 72 and make that your new monthly payment.

Any other solution would require you to get a new unsecured loan to pay off the house loan, raid your retirement, or win the lottery. Except for the lottery option, those are not great options.

Of course you can always sell your house in six years and downsize to fit your retirement life inside your retirement income.

Steve

Steve Rhode
WRAL Get Out of Debt Guy

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2 Comments

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  • SaveEnergyMan Nov 1, 7:48 p.m.

    At 5% APR interest, you would divide your current balance by 62.1 and add the monthly escrow for insurance and taxes. If the interest is 4% APR, divide by 64 and add escrow. That accounts for interest.

  • maadkowz Nov 1, 2:21 p.m.

    That simple of a solution doesn't work based on the fact that interest will be accruing even during that 6 year period.

About this Blog:

Steve Rhode has had careers in opthalmology, real estate and as the head of a nonprofit debt counseling firm. On his blog, he offers hard-won, free advice about getting out of debt, consolidation and making the right choices as you manage your money.