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Mock Mortgage payments as a way of saving...

January 21st, 2009 at 03:30 pm

Ok.. so about a year back i decided to really get serious about buying a townhouse or a condo... a the time, i had and still have a decent down payment for it... due to the high gas/oil cost, i knew that paying a mortgage plus the utilities will cost me a whole lot more than my $1000 a month rent with all utilities (except, light and cable).. By my calculations, i pay about $1200 month now .. and a townhouse or condo with utilities will cost me approx. $2200.
SO, here is what i did to just keep saving while still staying in my apt, I started Making my rent payments as a mortgage payment. Every month when its time to pay the rent, i would pay the rent as usual but also have approx to $1000(diff b/w mortgage and rent) transferred to an online savings account.. so for i have saved close $12000 that i can add to my dwnpymt when i decide to buy.. Simple concept really, but it takes a bit of discipline..Just pay yourself as if you were the mortgage company and you will rack up cash before you know it.. share some of your ideas with me!!!

4 Responses to “Mock Mortgage payments as a way of saving...”

  1. North Georgia Gal Says:

    That is awesome!! Keep up the good work!

  2. creditcardfree Says:

    If everyone did this...we wouldn't have the some of the mortgage problems we do know.

  3. NJDebbie Says:

    You're a very smart lady.;-)

  4. whitestripe Says:

    BF started to do a similar thing when he realised we would have to get stuck into it if we ever wanted to buy a house. In 6 months he saved up $11k. We're now in the middle of settlement! Smile
    ps. dont forget all the other little expenses you might have like h&c insurance, rates etc.

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