Why Paying Extra Principal Payments On Your Mortgage Is Not the Fastest Way to Pay Off Your House

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  • เผยแพร่เมื่อ 27 พ.ย. 2024

ความคิดเห็น • 81

  • @wickedbird1538
    @wickedbird1538 ปีที่แล้ว +31

    😮😮When I had other debt, I paid it off first. Once I got out of credit card debt and car debt, I started paying extra on my house. Now that I am retired, all of my pension is mine. If I had not paid extra on my house, I would still be working at 68.

    • @peartfaldo
      @peartfaldo ปีที่แล้ว +3

      Yep. No debt is the way. All of your income is YOURS.

  • @rocker6951
    @rocker6951 ปีที่แล้ว +42

    What if the stock market crashes and you lose your job. You will have wished you payed off your mortgage.

    • @YoungSuuPhan
      @YoungSuuPhan 9 หลายเดือนก่อน +2

      Never rely on just one single job to survive

  • @victorscarpulla2478
    @victorscarpulla2478 ปีที่แล้ว +26

    Sorry. But making extra payments makes sense to me instead of saving it. For example you may have a 3% 30yr Mortgage but when you check to see how much of your payment goes to interest the first few years especially that 3% might look like 75%. What better investment is there if you have $1,000 dollars lying around and not knowing what to do with it? And if in the future you sell your property you will be glad you made those payments because your equity from the sale will be substantially more. I think my way is the most surest, easiest and safest.

  • @JuguemosconSentido
    @JuguemosconSentido ปีที่แล้ว +13

    Nah! What if something happens to my health? Better to payoff fast and not be worried

  • @David-be1ox
    @David-be1ox 6 หลายเดือนก่อน +5

    I know an older gentleman that was going to pay his mortgage off out of his 401k after losing his job. Decided not to. Lost his money on market crash and now regrets it!

  • @RO-rr3tx
    @RO-rr3tx 2 ปีที่แล้ว +47

    I beg to differ. I had a 15 year mortgage. My first payment was in May 2015. My payments were $750.00. As of Nov 2022, my house is paid for. Done. Along the way, I made 4 lump sum payments. Paying lump sum on the principal works.

    • @The_Walking_Asset
      @The_Walking_Asset ปีที่แล้ว +3

      But now you have all of that equity tied up in your home. With little to no control

    • @derick3482
      @derick3482 ปีที่แล้ว +14

      @@The_Walking_Asset and the price of his house ? ?
      his house is not just sitting , it is appreciating in value every year

    • @dustinquinton
      @dustinquinton ปีที่แล้ว +14

      Paid $225,000.00 for my house. I will pay my house off in 7 yrs and will save $250,000.00 in interest. $225,000.00 and $250,000.00 equals $475,000.00. Not bad for a 7 yr investment.
      The number one reason for having my house paid prior to retirement is for is “piece of mind.”
      House will be paid when I am 61, and will work another 4 yrs with no debt. I will in turn take what I was contributing towards my house and invest for 4 yrs. With my social security, pension (started collecting in 2019), no debt and investments, to include my current 401k, I will be just fine. Plus, I’m moving out of the country where the cost of living is much cheaper.

    • @RO-rr3tx
      @RO-rr3tx ปีที่แล้ว +2

      @@dustinquinton You are a prime example that if you plan your finances and stay with your plan it can be retire with no debt

    • @dustinquinton
      @dustinquinton ปีที่แล้ว +9

      @@RO-rr3tx and I know that some people say that you can retire with millions in the bank if you invest instead of paying off your mortgage, but like I previously said, it’s “piece of mind.” I will be fine financially, and I hope the same for you. Also, I can’t take the millions with me when I die.

  • @formula112967
    @formula112967 ปีที่แล้ว +11

    This video is assuming everyone with a mortgage is a wall street stocks guru.....most smart people that want to pay their mortgage down fast are not throwing thousands of dollars at the stock/bond/investing market.....it is smart to pay down your mortgage as fast as you can, and put the max amount in your 401k as possible. I make double and triple principal payments every month and I am 10 years ahead on my mortgage, but I haven't even been in the house for 9 years....I will turn my 30 year mortgage into a 14 year mortgage or less and slash the interest amount in half or more....I have already saved $37k in interest.......no regrets.

  • @delayedgratification581
    @delayedgratification581 ปีที่แล้ว +29

    What a scam LOL don’t pay off your debt, BUY MY FUND!

    • @bign1667
      @bign1667 2 หลายเดือนก่อน

      And my book 📖 😆 🤣

  • @davideades160
    @davideades160 ปีที่แล้ว +8

    You know I got a 30-year mortgage and if you start from beginning of your mortgage an extra 50 month towards the principal at beginning this is an example turn it 30 year mortgage into a turn into a shorter-term mortgage right off the top so you'll have a extra money to put on the principal each payment for 30 years you can turn your 30 year mortgage into a 20 year mortgage if you have the extra cash to pay on principal. So I chose the long-term mortgage because I buy always to an extra money towards the principal changes the time frame of the loan so you still have a low house payment give extra towards the principal it pays it off faster. Sorry Mom not clear that's what I had or have 30 year mortgage when I had extra money is sent to the principal next one's interest will be less whatever I want for 30-year mortgage I don't two properties one of those paid off but my home is not paid off the government's going to give as many people as they can to help so they can get their job back as a politician to each her own I believe I'll be done with Mortgage in the next 6 years I get a 30 year mortgage do you want to turn in a 15-year by paying extra principal at the beginning if you can afford it but if you're going to invest at hundred dollars and make I make money off of it well that's what it's about whatever works for you best I chose a 30-year if I throw my extra money towards the principal I'll knock a few years off their 30 years that's why I got a 30-year mortgage payment and you can turn it into a 20 or 15 if you have the extra money to pay down the principal on your 30 year mortgage

  • @JuguemosconSentido
    @JuguemosconSentido ปีที่แล้ว +5

    Some people earn “by teaching” not doing

  • @MrRckstdy77
    @MrRckstdy77 ปีที่แล้ว +7

    I never heard of "Laser fund". I rather pay off my house.

  • @bernitup6492
    @bernitup6492 3 หลายเดือนก่อน

    Peace of mind is more for me... still paying off my 3% mortgage off early. I will then invest the mortgage payment in the market.

  • @hermanhall7989
    @hermanhall7989 ปีที่แล้ว +4

    Banks credit unions etc, what does that have, to do with paying down my mortgage, is reducing principal, with extra money paid monthly, will that reduce my interest, by me reducing my balance, therefore interest is calculated on my balance am I reducing years from my mortgage, over thirty years loan, with this method, True or false, as opposed to investing in tax liens, and getting a return that's if you have that extra money

  • @keithrichardson9127
    @keithrichardson9127 ปีที่แล้ว +8

    Everyone this guy is wrong. Get on the Dave’s Ramsey plan and follow his steps and listen to his advice.

    • @scorpiondavid87
      @scorpiondavid87 ปีที่แล้ว

      He is not wrong. Factual he is correct if The laser fund concept will guarantee you 7-8% but I agree with Dave Ramsey method

    • @abdeon2203
      @abdeon2203 4 หลายเดือนก่อน

      @@scorpiondavid87but there are no guarantees in the stock market though. So Dave is right.

  • @marcusantimony7535
    @marcusantimony7535 ปีที่แล้ว +19

    Let's see... who is wealthier? Doug Andrew or Dave Ramsey? You say Dave Ramsey? Yes, wealthier by far! So... don't listen to this guy, listen to Dave Ramsey! What does Ramsey say? Create an emergency fund, pay off all your debts smallest to largest, fund the kids' college/401K, and then PAY OFF THE HOUSE. Listen to Dave, he has rock-solid, low-risk advice. Don't listen to this risky, 3-card Monte guy.

    • @triumphiztation
      @triumphiztation ปีที่แล้ว +3

      This guy defaults on his Loans, Not a Honorable guy.

    • @TheChess419
      @TheChess419 ปีที่แล้ว +2

      I couldn't have said it any better!

  • @cubbymombudgeting8027
    @cubbymombudgeting8027 2 ปีที่แล้ว +4

    Thanks! Wow...I literally just paid my very first over payment on my new home. I understand the difference totally, just never looked at it from this angle....wow!!

    • @missedfortune
      @missedfortune  2 ปีที่แล้ว

      Fantastic!

    • @keithrichardson9127
      @keithrichardson9127 ปีที่แล้ว +6

      Girl he’s wrong. I had 30 years on my hands but paid it off in 14 years. Get on the Dave Ramsey bandwagon plan.

    • @terrencemcphail5782
      @terrencemcphail5782 ปีที่แล้ว

      @@keithrichardson9127 ramsay plan is efficient people just dont like the man

    • @victorscarpulla2478
      @victorscarpulla2478 ปีที่แล้ว

      I believe in making extra payments. Notice the comment above. This man is trying to sell something to you that benefits him.@@keithrichardson9127

    • @brianquigley6862
      @brianquigley6862 11 หลายเดือนก่อน +1

      The problem here is there is NO place one can put their money risk free and be guaranteed to make more than the interest rate on the mortgage. My mortgage is 7%. Tell me where can I go right now and get guaranteed 7+% on the money I am using to pay down more principal. Please tell me where is this "magical" guaranteed rate of return????
      The way I see things is this: if I send in xtra money towards principal, I am getting a 7% guaranteed rate of return on my money bc that is what my mortgage rate is. Somebody please tell where I can go and get say 9% guaranteed rate of return for the next 15 years? Maybe I am lost and turned around here. I welcome insights!

  • @sergeydudukin4214
    @sergeydudukin4214 ปีที่แล้ว +3

    Real 100K mistake is 30 year mortgage vs 15 year.

  • @countysheepdog55
    @countysheepdog55 2 ปีที่แล้ว +1

    _"Mr Andrews this is definitely one of my favorite videos!"_
    _(you are a superhero of IUL & how money works)_
    *~CSD*

  • @jo-annmacneill6454
    @jo-annmacneill6454 ปีที่แล้ว +2

    I like what you're saying oh I have a monthly mortgage I'm it was 1600 and something dollars almost 1700 so I'm only putting like an extra $36 a month towards principal only. are you saying i should not do this ? i am paying PMI

    • @formula112967
      @formula112967 ปีที่แล้ว +2

      Would you like some good advice? make your regular payment plus an extra principal payment with the regular payment. I make 2 extra principal payments plus my regular payment, which adds up to 3 principal payments every month.....don't listen to the guy in the video.

    • @terrencemcphail5782
      @terrencemcphail5782 ปีที่แล้ว

      @@formula112967 correct pay extra monthly on your principal and keep doing it it will cut the time down with every payment

  • @yolandasylla2465
    @yolandasylla2465 หลายเดือนก่อน

    The borrower is ALWAYS slave to the lender, I challenge you to look at every example where,
    when you owe the $$ you actually have the power over the person or entity who lent it to you 😮
    Plse share examples anyone, I’m open to learning

  • @adamsdiyandrandomvids5379
    @adamsdiyandrandomvids5379 2 ปีที่แล้ว +2

    So how do I start a laser fund or iul the absolute cheapest way

  • @jordandowland7256
    @jordandowland7256 2 ปีที่แล้ว +6

    What sorcery is this!

  • @Rinas-l3h
    @Rinas-l3h 6 หลายเดือนก่อน

    What about if your mortgage rate is too high?

    • @missedfortune
      @missedfortune  5 หลายเดือนก่อน

      Great Question! The general answer on when interest rates are high for borrowing - they are high for earning. My recommendation is to refer to one of our IUL Specialists on your particular circumstances. 3dimensionalwealth.com/getstarted

  • @SPECTEM_2
    @SPECTEM_2 2 ปีที่แล้ว +1

    Same bank they do not allowed every two weeks

  • @mikep4869
    @mikep4869 7 หลายเดือนก่อน

    payout your mortgage. Use the new equity to acquire an income producing asset. Buy term insurance.

  • @2119rocky
    @2119rocky ปีที่แล้ว +1

    I do get his point, but still don’t agree

  • @dashawnhawthorne1297
    @dashawnhawthorne1297 2 ปีที่แล้ว +1

    Quick question Doug, if my client has an old 401k and wants to roll money out to and IUL. The money that’s left in the old 401k is still subject to negative volatility, Right? What do you suggest I do?

    • @cubbymombudgeting8027
      @cubbymombudgeting8027 2 ปีที่แล้ว +1

      I was told to roll the old 401k into a tax free Annuity. Hope that helps.

    • @dashawnhawthorne1297
      @dashawnhawthorne1297 2 ปีที่แล้ว

      @@cubbymombudgeting8027 what’s a Tax free annuity?

    • @kunalamin8
      @kunalamin8 2 ปีที่แล้ว

      You cant roll it over to IUL.

    • @kunalamin8
      @kunalamin8 2 ปีที่แล้ว

      @@cubbymombudgeting8027 annuity cant be tax free its tax deferred

  • @joegranger7844
    @joegranger7844 2 ปีที่แล้ว

    How much would you charge me to open a policy the right way?

    • @missedfortune
      @missedfortune  2 ปีที่แล้ว

      Hey there, you can setup a time to speak directly to an IUL Professional we work with here: www.3dimensionalwealth.com/getstarted

  • @Thabisosm
    @Thabisosm ปีที่แล้ว

    Lets just agree to disagree.

  • @joendrsn
    @joendrsn 6 หลายเดือนก่อน

    its not the fastest way - its the only way!

  • @sergeydudukin4214
    @sergeydudukin4214 ปีที่แล้ว

    Good luck with that in 2023 when mortgage is 8% and stock market growth is in negative numbers.

  • @bailey-k6b
    @bailey-k6b 9 หลายเดือนก่อน +1

    shyster

  • @OvertIntelligence
    @OvertIntelligence 2 ปีที่แล้ว

    So that’s what you mean by buy term invest the difference on steroids huh??

  • @castroeladio
    @castroeladio ปีที่แล้ว +1

    This person is focused on putting your money in his account not paying down your mortgage.. scam

  • @pablocortes6950
    @pablocortes6950 7 หลายเดือนก่อน

    Sounds to me like your just trying to push your book 😁👍

    • @missedfortune
      @missedfortune  7 หลายเดือนก่อน

      Precisely! My 300-page book can transform your life. I pay for the book, it’s free for those who are willing to “put some skin in the game” and contribute toward the shipping and handling. I implore you to study it and see what insights you gain.

  • @jaydenmtbpr
    @jaydenmtbpr 7 หลายเดือนก่อน

    When you make money selling books 😂

    • @missedfortune
      @missedfortune  7 หลายเดือนก่อน

      Truth be known-I print my books in lots of 12,000 to get the printed price down to $3. To send one out priority mail averages $9. To pay someone to package and ship runs about $3 per book. Let’s see, my cost to send out a book is $15. I ask for those interested in a copy to contribute $10 toward the shipping, (to have some skin in the game). So, I lose $5 per book that I send out. I send out between 1,000-2,000 books per month. So, how do you figure I make money selling books?

  • @R_W_R_W
    @R_W_R_W ปีที่แล้ว

    Dude never gets to the point

  • @sonamkyap2000
    @sonamkyap2000 ปีที่แล้ว

    His advices is good only for the rich people

    • @missedfortune
      @missedfortune  ปีที่แล้ว

      No, not true. Check out this video: th-cam.com/video/2X7so-hkIlc/w-d-xo.html

  • @OyunBabus
    @OyunBabus หลายเดือนก่อน

    The BIGGEST LIE You've Been Told About Money is that it doesn't grow on TREES!! 😆

    • @NoahNollens
      @NoahNollens หลายเดือนก่อน

      I agree with you!! Money actually grow on trees but only on trees that was planted by you!! These tress are referred to as investments. How you diversify your investment portfolio matters

  • @amandanieves592
    @amandanieves592 2 ปีที่แล้ว +1

    I'm the furthest thing from a "math person" can you tell me this in a simpler way? I kind of get it..

    • @petepicariello4749
      @petepicariello4749 2 ปีที่แล้ว +1

      Instead of paying extra payments to go toward your mortgage, put that extra money into a LASER fund (Max Funded IUL) and it should grow and be able to pay off the mortgage even quicker.

  • @RoyelNotRoyal
    @RoyelNotRoyal ปีที่แล้ว

    You’ve lost your mind dude

  • @castroeladio
    @castroeladio ปีที่แล้ว

    😂

  • @hs4690
    @hs4690 2 ปีที่แล้ว

    first

  • @stephenwirth9298
    @stephenwirth9298 ปีที่แล้ว +4

    I new he was selling something

  • @derick3482
    @derick3482 ปีที่แล้ว +1

    it's all theory all you got are theories
    this is a problem with people who write books including Dave Ramsey mj Demarco et al
    don't ever take advice from people who write books for a living