+

Cookies on the Business Insider India website

Business Insider India has updated its Privacy and Cookie policy. We use cookies to ensure that we give you the better experience on our website. If you continue without changing your settings, we\'ll assume that you are happy to receive all cookies on the Business Insider India website. However, you can change your cookie setting at any time by clicking on our Cookie Policy at any time. You can also see our Privacy Policy.

Close
HomeQuizzoneWhatsappShare Flash Reads
 

BUDGET SHEET: A married couple breaks down how they paid off their $200,000 mortgage in 4 years

Jan 22, 2020, 21:36 IST
Andy HillAndy Hill and his family.

Homeownership can be a daunting proposition for many people - especially when it comes to finances.

However, as Andy and Nicole Hill proved, that doesn't mean it's outright impossible. The journey to buying a home - and paying off the mortgage - just takes discipline, planning, and, in their case, following a monthly budget.

At the end of 2013, the Hills bought a $350,000, four-bedroom house. To make the purchase, they put down $155,000 and took out a $195,000 mortgage.

Advertisement

The couple made their first mortgage payment in January 2014 and their last payment in November 2017.

Andy Hill told Business Insider that for them, the journey to becoming debt-free required sticking to a strict budget that they created every month. This approach allowed them to make additional payments to the principal each month that varied in amount.

Any extra money the couple came into - whether it was a bonus at work, tax returns, or money made by selling items around the house - went straight toward the mortgage. In fact, twice a year, Andy put two full paychecks toward the principal.

The couple created a "zero-based budget," meaning every dollar of their monthly income was assigned a purpose. Andy gave Business Insider an exclusive look at his monthly budget sheet from May 2016. On the spreadsheet, the couple divided their income across nine expense categories.

Do you have a similar story or budget you'd like to share with Business Insider? Get in touch with this reporter at lbrandt@businessinsider.com.

Advertisement

Subscribe here to read our feature and see the breakdown of the budget sheet: A Michigan couple who paid off their $200,000 mortgage in 4 years shares the exact budget sheet they used, and it accounts for every dollar of their monthly income

NOW WATCH: 5 facts about the animal kingdom that Golden Globe-nominated 'The Lion King' ignored

You are subscribed to notifications!
Looks like you've blocked notifications!
Next Article