The Lost Tradition of the Mortgage Burning Ceremony

Have you ever heard of the term “mortgage burning?” If you haven’t, ask your parents or grandparents as I’m sure they have.

Mortgage burning ceremonies are really a thing of the past and I want to bring them back. Banks used to send out the actual mortgage when a mortgage loan was paid off. Many people actually burned their mortgage in a sign of financial freedom. They no longer had the largest debt hanging over their heads. Some might even be jealous to see this happen.

We have become a society of change. Our parents or grandparents may have lived in only one house their whole lives, while today, people have owned many. That by itself isn’t a good excuse to eliminate the grand ceremony of burning your mortgage!

So many of you are asking, "Where do I start?" Well, the first thing I would recommend is to consider doing a 15 year mortgage instead of a 30 year mortgage. This idea isn’t popular with many in the real estate business, because they will tell you that you can buy more house with a 30 year mortgage. The downside of this is that customers will be paying for it twice as long. The truth is that you may be able to afford a slightly higher priced home with a 30 year mortgage, but the difference is not significant. Here is an example of the unbelievable savings comparing a 30 year to a 15 year mortgage on a $150,000 loan:

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(After 15 years you could take the house payment money and put it towards college education or retirement.)

Now, I realize that we're in the business of earning interest on loans you secure, but I can also assure you that our number 1 fundamental is to always do what’s best for you, our customers. I would be honored to attend your mortgage burning ceremony! Just let me know when it is.

NOTE: The example above is for informational purposes only, and uses estimated APRs. 

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