TRICK TO PAY OFF YOUR MORTGAGE FASTER!
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- เผยแพร่เมื่อ 17 ส.ค. 2022
- If you're looking to pay off your mortgage faster, there's a simple trick that can help you do just that. By paying a little extra each month, you can save yourself thousands of dollars in interest and shave years off your loan.
Here's how it works: let's say you have a $300,000 mortgage with an interest rate of 4%. Your monthly payment would be about $1347, which includes both the principal and the interest.
Now, let's say you decided to pay an extra $253 per month. That extra payment would go entirely towards the principal, which would save you thousands of dollars in interest over the life of the loan and shorten the loan term by seven years.
Of course, you don't have to pay that extra $253 all at once. You could break it down and pay an additional $50 per week, or even $10 per day. Any extra amount that you can pay above your regular monthly payment will help you pay off your mortgage faster.
So if you're looking to save money on interest and shorten the life of your loan, consider making a few extra payments each month. It may take some sacrifice in the short-term, but it will be well worth it in the end.
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My wife and I's monthly payment was $2415 month. We would pay an extra $500 a month towards the principal. We currently just refinanced to get a lower interest rate and to get off of PMI. Our new monthly payment is $2915 a month. We plan on still paying $3700 a month but are now going to do bi-monthly payments.
making the payments quarterly, in addition to adding, a payment each month and watch how fast the payments begin to drop on your amortization chart. I've got one more year after starting about a year ago. The timing of the payments is everything. This is the only thing that they all leave out when doing the videos.
Instead of extra payments, I suspect you would be better off putting the $782 per month into shares of Apple and Amazon. The video more or less describes how you can get out of being a debt slave When you have cash you have options. Smart people hold on to cash. They don't instantly shove it toward debt. Once it is used to pay on the debt, it is no longer accessible.
One part of this vid that I do like is the idea of not taking on a large debt in the first place. I think there should be a balance between the amount of debt you incur and the amount of cash you can invest. I would rather have a $1000 house payment and $1000 going into stocks than a $2000 house payment and no stocks. If you have cash and you’re confused I will suggest you contact a finance advisor
Market behavior can be complex and unpredictable. Mind if I ask you to recommend this particular coach to whom you have used their services?
The decision on when to pick an Adviser is a very personal one. I take guidance from Sharon Ann Meny to meet my growth goals and avoid mistakes, she's well-qualified and her page can be easily found on the net.
I have a 3% mortgage interest rate and suddenly became liquid from the sale of a business and i am confused if i should pay off my mortgage or invest in the stock market.
Keeping a 3% mortgage and investing cash in the market, growing at 10-20%, is basic math. Look up dividend aristocrats, companies with a 25+ year dividend track record. Also, its advisable you work with a financial advisor for a well-structured portfolio.
Agreed. Through working with a financial advisor, I've grown a well-diversified portfolio to $2 million, experiencing exponential growth since I began. Success in stocks requires not just money but also knowledge, persistence, and resilience.
Your advisor must be really good. How I can get in touch? My retirement portfolio's decline is a concern, and I could use some guidance.
'Melissa Elise Robinson' is the advisor I use. Just research the name. You’d find necessary details to work with to set up an appointment.
Thanks for sharing. I curiously searched for her full name and her website popped up immediately. I looked through her credentials and did my due diligence before contacting her.
I’m a new dad, I moved closer to Santa Clara a few years ago and I’m thinking of purchasing a single family home there, but with real estate prices currently through the roof, is it still a good idea to buy a home or should I invest in stocks for now and just wait for a housing market correction? I heard Nvidia and AMD are strong buys.
it’s a personal decision, but according to Forbes, housing activities will remain stagnant for the most part of the year, so maybe hold off a little.
well you could put a downpayment on a home and as well diversify as much as you can into Ai and pharm. stocks like Pfizer and JnJ.
Certain Ai companies are rumoured to be overvalued and might cause a market correction, I’d suggest you go with a managed portfolio, but even those don’t perform so well, so it’s best you reach out to a proper fiduciary to guide you, that’s what works for my spouse and I making a whooping $738k in Q4 last year.
this is all new to me, where do I find a fiduciary, can you recommend any?
The decision on when to pick an Adviser is a very personal one. I take guidance from ‘Monica Mary Strigle‘ to meet my growth goals and avoid mistakes, she's well-qualified and her page can be easily found on the net.
“Here is a trick to pay off your mortgage faster….. ready?? Ok… the trick is… make larger payments!” Aduhhhh
😂😂
Also, his calculation is off by a dollar on the additional payment amount per month
Yeh it’s unbelievably obvious isn’t it
Wh didn’t I think of that
😅
Be sure to specify that the extra goes to the principal.
Agreed, I was looking for the rest of the “trick” pay when? To principal I’m sure..
Yes so if u pay extra how do u know its going to pricipal. Then would it be easier or better if he paid his normal rent and the "EXTRA" PAY just towards the principal???
@@lovemomrios6925 you can call the bank and make a payment specifically on just the principal.
@@79dogface yep! I pay my mortgage online and you can check the principal only..escrow only etc buttons
Thank you for clarification that’s what I came here for.
I have a trick to paying a 30yr mortgage in half the time. It's called a 15 year mortgage. 🤣
Waste and too expensive
@@mrcodcommando3939 Perhaps but I have less than 2 years to payoff my mortgage. And I have no car payment, no student loans and no revolving credit balances. Can you say that?
You’ll have much less flexibility with what your payments but yeah
True but than you will be held to that payment amount.
@@mrcodcommando3939how is a shorter mortgage too expensive ? It’s literally the complete opposite
i have been paying an extra year in principal every chance i get. my house loan was $382k at 6.75%. we paid our first payment on 1/1/2023, it's now 8/16/23 and i've paid off 5 years early. i've avoided paying $130,926.14 in interest over the 30 years so far. the total amount would be over $547k in interest, so i've lopped off a healthy amount already!
You also sunk 5 years worth of mortgage payment into “equity” in a property Wich is returning you 0$. Much better to put that money to work with another cash flowing rental or in the stock market it’s easy to beat 6.7% gain on your investment yearly so it’s pointless to put a single penny into your house to lower that total debt faster. It’s about income/ profit - not debt.
@@davidlima1645 I already have multiple rentals so I could care less about more rentals. The prices are too high right now so I’ll wait until the prices come down or continue paying off my mortgage. Then sell my house and take that profit to buy a large plot of land. I do not trust the stock market. It is artificially inflated atm so if you make money in it then good for you but you can also lose it all there. To each their own.
@@davidlima1645i mean he’s saving tons of interest and cuts off time of his loan isn’t that good?
Or take one payment, divide by 12. Pay that much towards the principle only each month. You'll pay off your house 10 years earlier.
Can you explain in simplest terms. I'm trying to figure out how to pay faster and more efficiently. Also, I am looking to buy a house in the future
I was told seven years
@@Jsiano91 what ever your more payment is just pay one extra payment a year and you will pay seven years fast. If you pay two payment a year you can pay it in 15 years. Or just take that number whatever it is in divided by 12 and pay every month a little extra. For example, if your mortgage is $ 4000 a month . You would divide that number by 12months and pay 334 a month toward the principal. So just make a payment of 4334 per month for 7 years earlier . Or. 4667 in half a year. Just ask your loan officer, he can break down the mouth of how much money you will save on interest .
@@limabean7235"he"?
@@limabean7235hey what happens if I pay the principal off in full? Do I still owe the remaining interest amount for the duration of the loan?
It’s not $252 thousand. It’s just $252
😅😂
I had to listen to that part again lol
Me 3
I will not believe a guy who thinks that $1,600 minus $1,347 is $252,000 instead of $253.
I miss the pre-pandemic mortgage rates; those were good times! With the market correction and an impending recession, things seem to be getting worse.
😢It's tough for people spending over 50% of their income on rent. With the economy not looking up and inflation driving up the cost of living, many may struggle in the coming phase.
Financial literacy is crucial, especially with the unpredictable market. Knowing the basic principles can help avoid common pitfalls.
I work with an expert financial planner, Nelson Maynard Fisher. He foresaw many of these issues, and his guidance has been invaluable.
He advised me to buy a condo in Tampa for $100k in 2020; by 2022, it was worth almost $200k. He helped me pay it off, and now it's fully owned.
The man you speak of how do we reach him
AT LEAST MENTION it needs to go to principle ! All this fancy editing and you forgot the whole point
lol
@@AdnanFeroz but i think people get it
@@davysmith8569 actually, not all people get it. I appreciate the feedback from others. It helps to understand the entirety.
@@AmyEdwardson31 right on, good point
Yea.. I was a little lost.
I just pay the minimum and invest my extra money into a brokerage account in the sp500 and I will pay it off once I reach my principal amount .
wow you blew my mind ! now only if I could pay 1000$ more a month that would become even better !
Hehehe ,why haven’t I thought of this?!!
Sooo pay extra. 😒 We’re here because we can barely pay the original payment.
His face at the end of the video😂
I came up with $253 not $252😮 different math i guess😒
that is what i got as well
He said 252,000 lol 😂
If I have the money to pay off my house in full right now, would it allow me to save more money in the long run rather than continue to pay the mortgage monthly for the remaining 22 years?
$300k house? Where?
Mississippi
Ukraine
I bought a nice two story house on a couple of acres of land for $135,000 in 2020. Life is cheaper in the country. And more peaceful.
@@psilocypher That was 3 years ago before the housing prices shot up.
They get cheaper in Louisiana for a modern style house.
So why wouldn't ppl just pay 0k at the end of every year on principle to pay ot out 5 or less?
So if i make 2-3 extra principle payments a year that will cut my loan by 14-21yrs? Meaning making 2-3 extra mortgage payments a year towards principal..
If I have 2 mortgages, one rental and one primary home. I want to pay off one early, which should I attack first?
Rental at 280,000 with 2.75% interest rate
Primary home 525,000 with 6.5% interest rate
The primary. Why would you want to pay off the rental? It's a great rate and it's a rental!
yes, make a note on that says' PRINCIPAL ONLY"
I'm not understanding where the $252,000 came from
Why stop at 1600. Why not pay $300k a month. That would cut the mortgage by 25 years!
😂😂😂😂😂😂
$252k you say?
Idk dude but that monthly payment its not adding up
That’s a next level Jedi trick
ive been doing this the last year. I bought my place in 2008 for 199k at 6.5% refinanced in 2015 at 4.25%. now in 2023 I owe 108k. I was only paying minimum the whole time. my mortgage is 1061/month. I now pay 1300 a month and will shave 24k off the loan and a few years. If more money opens up I will add it to the mortgage
What math did you use?
You have to make that $252 to principal right?
Yes, make sure banks put it towards principal, some banks are tricky and act dumb putting it toward you next payment. 😊
So many mistakes in this video. Who lays out a sum like that with the total on the middle line? The difference is $253 not $252,000. Does that say 'cuts ammort by 7 yrs'?
Can you show example with a $85,000 home 😊
What if I pay 5k a month? How much will I save ?
what you think you going save? money or time duration of payment?
252 THOUSAND more....?🥴🤣🤣🤣🤣🤣🤣
😂😂😂
she be paid in 5 weeks ;)
$1347 monthly payment on $300,000 . 😂😂😂 That's called putting 60% down. Just pay more monthly and ensure you let them know it is to be applied to the principle NOW and not to be used toward escrow or future payments.
A $1300 payment on a 300k 30 year loan would mean you'd first have to put 200k down payment. Not many people have 200k laying around and if they did why not just save up the remainder and pay cash and have no mortgage.
Extra $252 for 23 years?
That's like 1-2 night outs in a month, a huge investment into generational wealth
That's $252 MONTHLY not annually.
You are not going to pay $1,347 on $300,000 house unless you have awesome credit score. But I understand your strategy. You right about the 7 years faster
First Asian I’ve seen make a maths error.
I pay extra each month, even it is sometimes just a small amount
That math doesn’t show me anything.
Maybe a one on one approach would help you understand, reach out to your local area financial expert. Good luck!
30 year mortgage is scam. first 15-20 years, the majority of it goes to interest. 15 years is better at least
If you can afford it yes
It may be. However it is a ticket to home ownership for many and allows you to buy a more expensive home in some cases. You just have to use a 30 year to your advantage by being wise and pay more towards the principal every month or chance you get to cut the interest and pay it off faster.
@@shrinkingurl but doesnt it still boil down to the same thing? pay fast or pay slow, you still end up paying off that loan's interest and the principal in full?
@@insidepossiethe interest you don’t pay in full if you put more towards principal earlier on
Good 👍🏻
It’s 252 a month, with a budget it’s possible
Here is a better trick I gotta house in an area were I live the next town over no one likes it’s gotta bad rep. The housing market there is plummeted. A house that would cost close to 300,000 is only worth about 140,000. It’s still a super nice house. Then I know most people can’t do this but I save $3,000 a month that’s $36,000 a year times that by 4 years and it’s $144,000 that’s more then enough to pay off the house at starting price my mortgage payments are only $1180 per month. I know most can’t do this but I want my house payed off by the time I’m 34 years old so I can live my life happily and work a less stressful job.
Math is strong. Practicality is week. How you going to pay the $250 power bill
It’s $253 actually not $252
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The real trick is “where are you going to get that extra money from?” What if you are already working 2 jobs day and night.
His glasses doesn’t have prescription in it
Wowwww the trick is pay more money monthly who would believe this😂
I like that.
Do a mortgage at $130000
Pay whole balance, u can close it in 1 day 😅
I don't like this method because he seems to be interested in bringing down the interest...not the principle.
But Consumers are not supposed to pay INTEREST the Banks are 🤦🏾♀️
what?? what are you talking about
@@666dynomax yup!!! U have to learn Consumer Law!!! Your entire life is given to you by GOD!! Only Atheists pay Interests 😂 ALL Gods Children are born are valued And No Debts!!! The constitution says Banks are the Borrowers!!! I give them the CREDIT with my APPLICATION!!! 😡
Wow, brilliant. lol
That is not a good video to show people. If you just make a hight payment the bank will automatically apply that to interest instead of principal. Any extra payment has to be done towards principal to cut down the life of the loan. The first 15 years of the 30 year loan is all principal. They specifically decide the loan that way to they can make double the money they landed. When you make the extra payment toward principal you are paying the last 15years faster, which means that depending how much extra you pay every year, you will be done with the mortgage in about 20 year. 1 extra payment a year that is the same as your monthly payment cuts about 3 years of your mortgage.
In Canada any over payment goes directly into the principal and typical mortgages have a pre-payment amount limits set by default without any penalties. Any you are wrong on the fact that first 15 yrs are principal payments only, in fact its quite the opposite, the first years are heavy on interest payment and typically principal payment is about 25-30% of the total mortgage payment.
Wrong. 1 additional payment per year cuts 7 years off of a mortgage.
You don't need to specify additional payment going to principle. That's not how amortization works.
No trick
Your explanation didn't help
Funny thing is, at 8.64% I can still pay 900 a week but can't qualify for a mortgage because I'm under the 20% LVR because our house prices rise at 30% y.o.y without fail.
First off you're wrong by $1, it's 253 not 252.
But, how much is that number ($2,52,000) you showed? Is it American dollars??
And if you pay $252,000, like you said, then you'd pay your house off in less than 2 months!
I like his math. I'm going to do this 😂😂😂
Why does every advisor out there thinks people have got the money pay that 15-18% extra? If they had they would have taken leases loan amount in the first place!
Did he say paying $1600 gives you $252,000 more. Couldn't even say the numbers right to be credible.
I know right it should be $253 that’s way off 😂
😂You basically have to be a Millionaire to get a house in the US
It’s genius! 😂😂
It's 253 dollars difference. Not a a big deal unless the video is specifically about math haha
wow dude... mind blowing... ridiculous.
Make larger payments on the principal... simple no? 😂😂😂 who got money lying around.
No reason to pay your mortgage!!
Fake News. It’s $253, not $252 more a month, nor $252,000, can’t even type out that right or do basic math.
$1347 on a $300k house?? Our payment is $1400 on a $150k house.
Nice trick pay extra each month lll
The catch is, you need to go for Semi Flexi or full flexi loan in order for that to work, Banks are getting smarted
🧠
I’m about be on a 30 year $2,600 a month 🫠
I’m at $2,544.22
I don't like this method because he seems to be interested in bringing down the interest...not the principle.