Is it a realistic goal pay off a mortgage in 10 years?

Question

It's a dream of mine to fully own a modest home in full within a short period of time. I believe it's possible to buy and pay for a $175,000 house/condo in 10 years. I'm wondering if this is a realistic/feasible goal or if there are major factors I'm not including.

Here's my expected rundown:

Considering I have a down payment of 20% ($35,000)

-Annual pre-tax income of $35,000 a year

-A 15 year 5.5% loan (with good credit) for $150,000 comes out to $1,225.63 a month.

-But I would actually pay about double this, or about $20,000 a year. In addition, If I had two roommates, they would contribute $7000 a year. So that $27,000 yearly to a mortgage (minus interest). $27,000 * 8 = $216,000.

Minimalist lifestyle with few unnecessary expenditures. I would basically just buy food, insurance, fuel, utilities, and some entertainment. I suspect this could be as low as $5,000 yearly.

Suggestions/Criticisms? I would love to hear both.

Answer 1

It's certainly possible if your housing budget is realistic with respect to your income and outgo.  And it's clear that you've given serious thought to your plans.  

But I think your allocation for expenditures outside of the mortgage is unrealistically low.   For one thing, it doesn't appear you have budgeted for any maintenance on the house.  You've left out clothing and a few other costs.  And of course the other expenses tend to rise at least as quick as inflation (and perhaps more.)

Still, you could get the 15-year, put as much of the 'extra' money you have available into savings, and see where you were after a few years.   If you pick your roommates carefully you might pull it off.  If you have bad judgement on the roommates, all bets are off and the whole thing may collapse.  You don't have a lot of room for error or unexpected expenses in this plan.

Answer 2

  You will have to cut to the bare bones.  No luxuries like cars, no major repairs to the home, no new appliances, it will require a lot of luck.  The money you collect from the roommates, will that cover the cost of their food too?  All I can say is you have to do it to realize the problems you can incur.

Answer 3

the sooner you pay it off the better.  

Answer 4

Get a 25 or 30 year fixed rate mortgage open end which means you can pay it down without being penalized. On the first half of any mortgage you pay about 70% in interest. Request an amortization from your bank or mortgage co when you go to settlement. It will give you the break down between interest/principal.

Answer 5

Yes, my mom is doing it, yes we're doing away with a lot of luxuries right now but she wants the house to be hers.