pay off my house

Yikes! My property taxes are going up 33% this year. That takes a bit of re-budgeting.

I am buying my parents’ house, and I have three years to pay off the contract for deed. It isn’t very long, but if I eat macaroni and cheese and fried egg sandwiches for three years, I may be able to do it. I should mention that homes are not very expensive here. My goal is to pay $500 per pay period (twice a month) until March 1, 2008, and then pay $650 per pay period after that. My contract is for $250 per pay period, so that is a lot to go toward the principal. I am planning to use a loan against my 401(k) to pay the balloon payment at the end of the term if I haven’t paid cash.