Mortgage Killer Accelerator

Strategy 89 of 107 · new for the five-year plan

Board horses on pasture or in a barn you already have

Depends on people or program rulesFrom new cash flow, not your paycheckFive-year size: helps at the margin

What it is

Offer pasture or stall board with a written agreement on care, fees and liability.

Steps

  1. Offer pasture or stall board with a written agreement on care, fees and liability.
  2. Many states limit liability for equine activities if signs and contracts meet their rules.
  3. Send the net to principal.

Repeat: Monthly.

Measure: Net monthly board.

Try it in the calculator Enter its amount in "Monthly non-income amount to principal". Add a payoff goal of 5 years to see what is still needed.

Risks

  • Animal injuries and fencing costs.
  • Daily work.

Who it fits

Grandmas and grandpas (62 and over), Married couples, Business owners

Needs

Owns acreage or a large lot

How predictable

Depends on people or program rules (tenants, family, IRS records, lenders)

A worked example (hypothetical, not guaranteed)

Picture a hypothetical household (grandmas and grandpas (62 and over)). They owe $300,000 at 6.5% with 30 years left. The required payment is $1,896 a month, and that payment, which comes from income, never changes in this example.

They follow the steps: offer pasture or stall board with a written agreement on care, fees and liability.

Suppose it brings $150 a month on principal from this strategy, not from the paycheck. The loan would be paid off in 24 years 5 months instead of 30 years, saving about $83,919 in interest. To finish in five years, they would still need about $3,824 a month more from other strategies. That is why the five-year sequences stack several at once.

The amount above is chosen only to show the arithmetic. It is not an estimate of what this strategy will produce for anyone. Put real numbers from the fact finder into the calculator.

Sources and more information

Where to get help

Related strategies

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