In keeping with yesterday’s The Importance of Celebrating Other People’s Success post I thought it would be great to share Steve Stewart’s fantastic journey to becoming mortgage free. That’s right, he’s about to have a metaphorical mortgage burning party soon!
The post shared here is the sixth post in a series. Steve is sharing stories about how he and his wife are paying off their house early! To read all the articles (and congratulate him), please visit http://www.SteveStewart.me/paidoffhouse
My wife and I started living on less than we made, paid off all our consumer debt, and we will pay off our mortgage next week!
I have heard from my mortgage-free friends and clients say a paid for house is an incredible feeling. However, they also share some stories about snafus that delayed their final payoff date.
To ensure there are no snafus as we make our final mortgage payment, we will:
- Print a current Payoff Statement
- Walk into a local branch of our lender/bank
- Pay the balance in cash
Yes, I said we are going to pay the mortgage off with cold, hard cash!
While the bank has their own process for closing out the mortgage that could take a few days, paying cash has certain benefits:
- Cash is instant
- Cash is permanent
- Cash is undeniable
Let me explain further:
Cash is instant
Have you ever had to wait for approval to purchase your groceries with cash? What about electronics at Best Buy or clothing at Macy’s?
Paying for anything with cash is instant. As soon as the cashier returns your change and closes the drawer, your transaction is 100% complete.
My decision to pay with cash will ensure our payment isn’t delayed – or “lost in the mail” – and is faster than waiting for a check to clear.
Cash is undeniable
Have you ever held a dollar bill in your hand and wondered if it would clear the cash register?
Other than the possibility of being a counterfeit bill, cash has never been questioned as a legal tender for all kinds of purchases.
Sure, the teller might need a moment to examine the bills. However, my transaction can’t be turned away because U.S. currency “is legal tender for all debts, public and private”.
Now, if I could only get those vending machines to take my folded-up dollar bills more often 🙂
Cash is permanent
The terms of a purchase cannot be altered once it has been paid for with cash. It’s done, over, completed.
The deal will forever be sealed as soon as the money is applied to our mortgage.
There are no chargebacks, no change in the terms, and no chance of NSF (Non Sufficient Funds).
Bonus Tip: Cash is emotional
The real reason we want to pay cash for the balance is this: It’s going to feel really good.
What would you remember most:
- Writing a check
- Having a teller draft the balance out of your account
- Counting out $100 bills as you hand them to the teller
Paying with a stack of Benjamins will leave a stronger imprint in our memory and give us a great story to tell to our grandchildren.
Cash is powerful. So is paying off your debts – including the house!
What actions can you take today that will set the stage for paying off your mortgage with cash?
Steve Stewart has been teaching others how to eliminate debt and encouraging them to live a cash lifestyle for almost a decade. This year he left his day job, used cash to buy a car and new windows for his house, and is paying off the house as a Christmas gift to his wife. You can find out more about Steve, his blog, and his new podcast “No Debt, No Credit, No Problems”, at http://www.SteveStewart.me
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HAPPY DANCE, HAPPY DANCE….. I’m smiling at Steve and his wife!! Cash flowing life..– I luv it!!
I love stories like his! Can’t wait until I have a similar story to share 🙂
You will! I believe in you. You will continue to rock in 2016! (Yes, I am allowed to read blogs on vacation.:)
I appreciate your belief in me! I will be working harder in 2016 so we shall see how thing things will go. Too much work related activities on vacation.