You can borrow from your k or IRA though it has some drawbacks. An option could be you borrow from retirement accounts instead of taking out a mortgage. What you would have to do is find a house that would be suitable for a complete cash purchase.
How to “hack” your way to mortgage-free housing
You would still have to pay interested on your loan against your retirement funds, but this could be a way to extract more dollars for purchasing a home. This is not suitable as a low-risk solution. You can enter into a contractual agreement with a homeowner where they finance the purchase and set up monthly payments for you to pay.
When you pay the full amount, the title gets transferred to your name.
You can try a rent-to-own option and bypass a leasing contract. It is where any rent you pay on the house goes towards paying a down payment of a house that you want to own eventually. When you opt for the rent to own option, you do not have to sign an agreement or a contract promising to purchase the home. The purchase price is also a bit higher for rent to own options compared to when you buy a home on contract.
Another way to live mortgage free is to build your own home with your cash or using a home construction loan.
How to Live Mortgage Free with Sarah Beeny
A home construction loan is usually a short-term loan and can last up to a year after you have completed building. Tiny houses are quick and affordable to build. If you want to avoid monthly payments altogether, you can opt for a mobile home option, for example, you can live in a van, a camper or a trailer. You can eliminate loan payments if you entirely purchase the mobile home. You might also consider living in a mobile home while you save up for payments to make on a home. If you opt to live in a mobile home park, then you need to consider the monthly fees charged for the lot.
You might also try renting out a room in your current house to Airbnb or move into a smaller house or opt for a less expensive rental home then you can use the extra money earned to clear the mortgage. Airbnb can be a great way to increase your income and live completely mortgage free. I recently purchased a home and love this option. You then use all of the proceeds from the Airbnb to pay your mortgage all the while you are living in you home. Living mortgage free is actually pretty lucrative. You eliminate your single biggest living expense off your balance sheet.
By eliminating your mortgage, you end up being able to save exponentially faster and live completely financially free.
Living Mortgage Free: 12 Mortgage Hacks to Consider
You have the freedom to quit your job if you have enough funds saved up to live off of or have the income to supplant the minor expenses without your mortgage such as home insurance, property tax, etc. Mortgage free living can change your life. Keep in mind that if you want to have a mortgage-free life you need to be patient and work very hard. You will need to make sacrifices in order to get reach a mortgage-free life. You can ensure you get the right value for your home by using a home appraisal checklist upon purchase.
There are numerous tips on how to live mortgage free that you can find. Your wealth can grow exponentially in a no-mortgage situation. Not having to make mortgage payments each month is lovely, but there are still many other things that can create financial challenges and stress. Living without mortgage payments is a very attractive option.
You can earn income a lot of different ways, including flipping items for a profit. Millionaire Mob is an early retirement blog focused on passive income, personal finance, dividend growth investing and travel hacking. With both a million rewards points and a million dollar net worth you can live a happier lifestyle. Subscribe to the Millionaire Mob early retirement blog newsletter to find out the best personal finance , travel tips, dividend growth stocks, passive income ideas and more. Millionaire Mob is a former investment banker that hung up his suit and 'deal sleds' to focus on ways to travel the world, build great relationships and learn.
I am looking to help others learn passive income techniques, invest in dividend growth stocks, earn travel rewards and achieve financial freedom. I used Personal Capital to track my net worth. I love their platform.
3 Creative Ways Retirees Have Become Mortgage Free
Owning our house outright was a major contributor to FI. What we gave up in compound interest, we made up for in security. Our job situation was tenuous when we relocated but knowing we only needed to cover utilities and property taxes both much lower in NC than in NY, which we left made for an easy transition. Mobile homes here in NC are pretty cool. Now I consider them a real viable option for many. This is a nice list. We built an apartment in our basement and rent it out to cover most of our mortgage in a high COL area, similar to your suggestion of using Airbnb.
It allows us to put more money toward the mortgage principal and other investments. Totally agree on borrowing against k. I think the caveat of borrowing against your k is a good scenario when that interest rate is lower and you only have a few tens of thousands left on your mortgage. Airbnb and Trailer life is the way to go!
We live in a Tiny House and absolutely love it. We can even Airbnb it out when we want to go on vacations. Your email address will not be published. Living mortgage free is a very attractive proposition. Let's evaluate how to get there. Share this Can you live mortgage free? Are you ready for mortgage free living? Tags Mortgage , Personal Finance.
Groovy September 19, at pm Owning our house outright was a major contributor to FI. Millionaire Mob October 8, at pm Totally agree on borrowing against k. Leave a Reply Cancel Reply Your email address will not be published. Previous Post. If you love being on the water, this might be a great way to live rent free, as opposed to house sitting for a traditional home or apartment. Property owners such as farm owners or other people who own businesses on the site where their home is often look for people who will live rent free in exchange for a work program.
For instance, if you live on a farm rent free you might be responsible for mucking stalls i. There are some farms too that allow free live-in tenants for the specific reason of teaching them to be farmers. World Wide Opportunities on Organic Farms WWOOF for short connects people looking to learn how to live more self-sustainably with organic farmers looking for help on their farms.
Currently the site lists destinations for rent free living at dozens of organic farms all over the world. If you love to travel and are interested in learning more about how to live a sustainable lifestyle, this could be a cool way for you to do that and live rent free at the same time. Parents and pet owners everywhere are seeking out quality child or pet care by someone who they can trust with their beloved children or pets. A live-in child care provider can often earn not only free living quarters but extra pay as well.
Many pet owners also like the idea of having a live-in pet sitter. They may be frequent travelers, whether for work or vacation, or they may not like the idea of having their pet home alone for eight to ten hours a day while they are at work. To find work as a nanny, look at well-respected companies such as Care. Create your profile on Care. Local ad sites such as Craigslist also advertise for people who need child care help or pet care help.
Pet sitting is one of many side hustles that could turn into a profitable business for you and find you a place to live rent free as well. Apartment building managers are often given one of the apartments in the building as a place to live for free with the condition that they are available via phone to handle tenant problems such as needed repairs or conflict resolution.