The state of California has just enforced the newly-signed legislation that would be the answer to the Golden State’s homelessness crisis. Home prices in this state are far from affordable, not to mention the lack of inventory for home buyers from low- to moderate-income classes.
Despite this pressing issue, 2 million California residents now own their houses free and clear of a mortgage, according to the recent report released by the Orange County Register.
In the new census, it appears that owner-occupied homes that are mortgage-free have increased 29 percent in 2016. California’s debt-free homeowners are up by 339,000, accounting for 20 percent growth in a decade.
This is a surprising news, as the state still faces heated debates regarding housing affordability as the number of homeless people continues to swell.
This new statistics of mortgage-free homeowners in California still fall below the national percentage, which is 37 percent of all ownerships. In numbers, there are 27.7 million Americans across the country who are living few and clear of a mortgage. However, it cannot be denied that the number of mortgage-free homes in California is increasing faster than the national growth of 14 percent.
Meanwhile, the number has dropped with it comes to California homeowners with mortgages. Since the historic peaks in 2006, it has slipped to 4.93 million. Down by 498,000. A big contributing factor to this decline is the state’s current housing costs.
Cali’s Aging Population Wants to Stay in Their Homes
According to the same report, the Golden State’s present demographics can be one of the key reasons why more homeowners are paying off their mortgages.
Californians are now aging and becoming more stable. This population wants to settle down and pay their home loans completely to keep their houses. Moreover, mortgage interest rates have stayed at historic lows, encouraging many owners to pay off their mortgage or buy the house outright.
Many Californians have Learned it the Hard Way
When the housing bubble burst a decade ago, many lost their properties to foreclosure. In addition, numerous individuals could not afford to get a mortgage. California residents were not spared from these circumstances.
the painful consequences of the home financing blunders committed during the said period have become constant reminders for many borrowers.
Today, many homeowners want to be debt free quickly to avoid losing their homes. The sooner they are mortgage-free, the better.
How Does One Achieve Living Mortgage-free Faster
For those who want to achieve the true American Dream of a mortgage-free living, there are a few helpful tips that can apply homeowners to get there quicker.
But before you go through these strategies, make sure you already have carefully examined your financial situation and lifestyle. Your lifestyle will have a huge bearing on your financial budget, both in the present and in the future.
Make Extra Payments As Often as You Can
One may think that tiny extra payments won’t make much of a difference. But if you make an extra payment of $50 dollars weekly, imagine how much that would be in a month?
Where do you get the money to make these advance payments?
If you enjoy grabbing a coffee frap every day, you can reduce your caffeine consumption to just 3 cups a week. If you always get the large one, that already totals to $18 worth of savings. Instead of going out for dinner every week, give up just one in a month and put the money towards your mortgage instead.
If you compute it, these small amounts will accumulate and will cut the remaining month (or even years) off your loan term.
Don’t Let Your Savings Just Sit In Your Bank
Homeowners who are very motivated to quickly get rid of their mortgage balances make use of their savings to pay off their loans completely.
It is good to always have a significant amount of money in your savings account. But if at the same time you have a mortgage to pay, you can choose to put your savings to good use instead of just letting it sit in your bank, earning very little for you.
You can always discuss with a lender your plans on paying off your loans quicker. They will be glad to know that you are very eager to pay your debts. In fact, they would be more than happy to speak to you about the many possible options you can take for you to be mortgage-free faster.