Yes. Good job. I am half way done in 2 yrs. Hope to finish up in the next two yrs. Been thinking about a 2nd job too. I do make a good income so I am half way done. Paid 237k. Down to 110k 2 yrs later.
I think it's always a good idea to pay off a mortgage. We never know what life brings. And with a paid mortgage, at least you have a place to live. All you have to pay is utilities, taxes, and insurance. P.S. Never retire still owing a mortgage.
Mortgage rates are currently at their highest level in 24 years, and given inflation trends, they could rise even further. A 30-year fixed rate was only 5% this time last year. Should I keep waiting for a housing crash before buying, or should I redirect my focus to the equity market?
True, I mostly just buy and hold stocks, but my portfolio has been mostly in the red for quite awhile now. Unfortunately to be able to make good gains, you’ll need to be consistent and restructure your portfolio frequently.
In my opinion, investing was much easier back in the '60s, but it's a lot trickier now. The professionals are the ones making consistent profits these days, which is why I've been using an advisor for the past five years to steadily build my portfolio in preparation for retirement.
Melissa Elise Robinson is the licensed advisor I use. Just research the name. You’d find necessary details to work with a correspondence to set up an appointment.
@@SombraLocs if you send a check , write the memo "PRINCIPAL ONLY, with the loan info account". If you pay online your bank should give you the optio. to select . after you make principal payments , lets say 50,000 just in principal, ask them in writing to request a RE-CASTING. they will recalculate your montly interest paymend and the will lower it based on how much extra principal you paid . so your monthly payment will go down too. more money you save to pay your principal . people that do not understand the Math of expinential interest they end up paying 2 to 3 times the value of the loan if the house.
If you are makingyour payment at the bank, the teller will ask you where you want the extra money to go to. If you make it on the bank's website, you can choose where you want the extra payment to go.@@SombraLocs
My grandmother was born in the Great Depression. Single mother, teacher in WV. She paid for EVERYTHING in cash. She died a multi millionaire and if you saw her at Krogrer you wouldn’t even notice her. She did it right
Same here y'all if I do the biweekly I'll have it paid off in 10 years but do you thinking 🤔💭 I should do the biweekly with 1200 towards the principal every year
If you plan to sell your current home and plan to buy a new one I recommend not paying it off early as your cash can be used to purchase the new home. If it’s your forever home then pay it off early.
I was making an extra payment every month for about 2 years on 2 properties but then I realized that those loan percentages were the lowest in history so I traded the extra payment for an extra property and now I'm starting more businesses instead of paying down my mortgages. Plus, using cost segregation to crush tax liability on rental property acquisitions is where the juice is at IMO. Don't pay down your mortgage, just put that money into another property, cost seg it and/or start a/another business! 😅
Exactly. Depends on your goals. If you’re more ambitious, that money could be put elsewhere. For others, their 401k, savings and home is all they want.
@MAC LeVa the extra money could be better spent investing in more real estate that you can then rent out, the rent could pay that mortgage and possibly some of the mortgage in the home you live in. The extra money means you can save for a down payment to buy more real estate which the Tennant ends up paying for giving you more assets.
The comfort of owning your home. I'll take that. Never know when you will be down on your luck, or a pandemic hits and you bring in no rent and lose it all... so many variables. To each there own though!
that is because most families either bought too much house, had too many kids, or have too many nice new cars....I live a frugal life. I bought my house 10 years ago and if I keep paying extra principal payments, I will be paid off in the next 24 months, shortening my 30 year loan to 12 years.
Got my house this year and I'm 32, ill pay off my 350k house by age 40. I bought it because it has 2 acres and houses in my town is expensive. I already knew houses will go down in value but saw the house and its a steal. It should be worth 430k.
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?
Short answer yes...long answer hell yeah. In the 10 years I have had my mortgage and been paying extra principal payments, I have saved $65k in interest so far. I bought my house 10 years ago and if I keep paying extra principal payments, I will be paid off in the next 24 months, shortening my 30 year loan to 12 years.
No. Four reasons. 1) I have a 440k 2.625% VA Loan 0% down. 2) Tbill rates are at 5.4% with no risk, better to invest 3) VA loan at 2.625% is an assumable mortgage to any buyer not just veterans, so if I wanted to sell my home in this 8% mortgage climate it would be more of a selling point to the buyer to simply take over that miraculous 2.625% rate. 4) the home appreciates whether it is paid off or not.
If I’m paying extra 150 on my principal monthly for the past 6 years. Why is my mortgage company always changing my interest to principal percentage? I was at 45 in interest to 55 to principal. Now it change to 65 in interest and 35 to principal.
Oh I forgot to mention my office is in my home from my bed to the office is my travel time and from when I leave the house to go to the bank or to buy miscellaneous things for my properties that's a write-off so think about it
I was able to buy my house because the owner couldn't make the last two payments to own it outright. Im not going to let that happen on this house twice. Hopefully in 3 years i can pay it off.😊
First comment! Pay it off. Look up the amount you get for a standard tax deduction and see if you can even write off the interest on the mortgage. If you cant then you're wasting money paying the bank.
Thanks for being the first comment. maybe. but you could also take that extra money and invest it in retirement accounts or the stock market where it may do better then the 3,, 4, or 5% you'll save by paying it off early.
@@RichonMoney no it's out of our control. thanks though, still good advice you have here. good idea on the extra quarterly payments, we can do that as a principal only payment.
Only if it's a fixed rate and only if you cannot get investment returns above 3 percent including taxes. You could do both depending on current environment. Meaning, pay more on you're mortgage when you can't get savings investments higher than say 4%. If you can get savings over 4% then put more money in investments. Just a thought. Do same if you have car loan too.-John's wife
'Would you saying paying of mortgage early makes and sense if you have a 3 percent rate?' Would you say it is better to make payments for 15 years and save a ton in interest payments or make payments for 30 years and not save any money on interest payments....there is your answer.
What if you start paying off your mortgage early but wells fargo refuses to adjust your mortgage balance? Then, your mortgage is transferred several times.
Not everyone has a low interest loan....mine is 4.3%. In the 10 years I have had my mortgage and been paying extra principal payments, I have saved $65k in interest so far. I bought my house 10 years ago and if I keep paying extra principal payments, I will be paid off in the next 24 months, shortening my 30 year loan to 12 years.
it means you make 1/2 a mortgage payment every 2 weeks instead of once a month. It squeezes an extra payment out because you are paying the mortgage payment every 28 days instad of every 30 or 31.
Snowball. Pay off your lower balance cars first. Then use that savings to pay off credit card debt. Then use those savings to supercharge your mortgage payoff.
Or, keep your 3% mortgage and invest the cash you’d use to pay off that mortgage to make a 6%, 7% or maybe even 12% or higher return. You will build wealth in no time. I want to have as high of a mortgage as I can till I die. Home is an appreciating asset, so it makes sense to take a long time to pay it off. Just think of how much homes cost 30 years ago. It’s laughable today. As long as you can make a better return on your cash, paying your home off early does nothing for your wealth.
Each year, pretend to refinance your house to the full value of your home. Especially when it is paid off, so you know how much to invest. Have a downpayment as your emergency fund and is consistently investing a mortage payment so you dont get too comfortable with your low expenses.
We know someone that moved from CA. to Georgia, they bought a huge home for $450,000.00 and thought it was inexpensive! CA is expensive, but you're salaries are higher to offset. Even with above example, they thought everything was on sale from what they were use to.-John's wife
I did all of these but also got lucky. I went variable in 2011 and rates dropped. At one point my interest was 0.75%. I’ll probably never see that again in my lifetime.
Okay i am wanting to make a monthly payment every week, amazingly i havent found any videos on how that would be for someone. i imagine it knocks it down to 7-8 years
Alot of factors play in there.....I have a 2.5 interest rate. I would rather that money max out my Roth IRA, HSA, and even though the market is down right now....Play the market. 2.5% is all I have to beat in order to make money not paying off my loan.
Hard to justify paying off a mortgage at 3.2% when that extra money that could toward paying off early is earning 9%. But I get it: you can’t live in your stocks.
The 3.2 mortgage is actually 60% over the course the loan. Not including the upkeep, whether there are other escrow payments, etc…But it’s all depends on your pain point and tolerance.
Shouldn’t pay DOWN your mortgage, no. But you can pay it OFF with investments. But most people won’t because they see how much more valuable investments are.
My interes is 2.875. Giving $500 extra every month and $1500 out of tax refund. Paying it off in less than 13 years. Peace of mind paying off the house early is great.
Well, then I guess I screwed up bad. In the 10 years I have had my mortgage and been paying extra principal payments, I have saved $65k in interest so far. I bought my house 10 years ago and if I keep paying extra principal payments, I will be paid off in the next 24 months, shortening my 30 year loan to 12 years.
@@formula112967 If you’re paying off a mortgage that has a lower interest than you can earn on investments, it doesn’t make sense. That’s not opinion, it’s arithmetic.
Pay the loan as if it was refinanced for 15 years instead of 30. So you pay it off faster, but it's technically still a 30 year loan, and you didn't spend the money to refinance or raise your minimum payment.
This advice is no longer relevant. If you got a mortgage between 2009 and 2021 then you have an interest rate that is lower than you will probably ever see again in your lifetime. If you ever need to extract equity from your home in the future, you’ll be paying 2-3x more than you would if you had just not paid down your mortgage early.
I would agree that is the logical choice in many cases, but you may not realize the appetite for paying off loans early. It's massive. It's not just a pure money issue. It's peace of mind and feelings about debt.
@@RichonMoney "Peace of Mind". Well said that is what me and the wife are doing. Paying it off in 13years. I will be 47yrs by then and don't need to stress as much. Aiming for an early retirement or working as a want not a need.
take that extra invest it in the stock market, it grows at 13%-20%, in 5 years you will be a millionaire. never pay house off faster, take out refi loans @ 3% and invest that capital in market that returns about 13%-20%.. free money.
Your numbers are from a perfect world....I have more accurate numbers because they are facts.... In the 10 years I have had my mortgage and been paying extra principal payments, I have saved $65k in interest so far. I bought my house 10 years ago and if I keep paying extra principal payments, I will be paid off in the next 24 months, shortening my 30 year loan to 12 years.
Don’t pay off your mortgage early. Take the extra money and invest it. As long as you’re getting a higher return rate than the mortgage rate you’ll end up with more money
Nope I don't pay it off I may pay extra on it but my loans at 4%, my investments in real estate pay me way more than that I use my money to buy continuous investment properties now I don't have car payments and minimum amount of personal debt but I keep the debts from my real estate most of my real estate investment properties are paid off though
Yeah, it would be better if people would promote getting real financial advice from advisors/wealth managers instead of just spouting nonsense content for ignorant sheep.
I got a 2nd job and pay it off in 3 years,
Principal payment every week,
That is amazing, congrats!
What bank allows weekly principal mortgage payments? I have looked and only could find banks that let you do semi monthly payments but not weekly
Awesome!!!
Bad idea
Yes. Good job. I am half way done in 2 yrs. Hope to finish up in the next two yrs. Been thinking about a 2nd job too. I do make a good income so I am half way done. Paid 237k. Down to 110k 2 yrs later.
I think it's always a good idea to pay off a mortgage. We never know what life brings. And with a paid mortgage, at least you have a place to live. All you have to pay is utilities, taxes, and insurance.
P.S. Never retire still owing a mortgage.
Mortgage rates are currently at their highest level in 24 years, and given inflation trends, they could rise even further. A 30-year fixed rate was only 5% this time last year. Should I keep waiting for a housing crash before buying, or should I redirect my focus to the equity market?
The stock market is no different, to maintain profit, you need to have some in-depth knowledge on the market.
True, I mostly just buy and hold stocks, but my portfolio has been mostly in the red for quite awhile now. Unfortunately to be able to make good gains, you’ll need to be consistent and restructure your portfolio frequently.
In my opinion, investing was much easier back in the '60s, but it's a lot trickier now. The professionals are the ones making consistent profits these days, which is why I've been using an advisor for the past five years to steadily build my portfolio in preparation for retirement.
I’ve been worried sick about the current state of my portfolio, who is your advisor?
Melissa Elise Robinson is the licensed advisor I use. Just research the name. You’d find necessary details to work with a correspondence to set up an appointment.
He should clarify pay down the "PRINCIPLE" not just make a extra payment - it matters where you apply it.
🏆
How do you make sure that the payment goes towards the Principal first?
@@SombraLocs if you send a check , write the memo "PRINCIPAL ONLY, with the loan info account".
If you pay online your bank should give you the optio. to select . after you make principal payments , lets say 50,000 just in principal, ask them in writing to request a RE-CASTING. they will recalculate your montly interest paymend and the will lower it based on how much extra principal you paid . so your monthly payment will go down too. more money you save to pay your principal . people that do not understand the Math of expinential interest they end up paying 2 to 3 times the value of the loan if the house.
If you are makingyour payment at the bank, the teller will ask you where you want the extra money to go to. If you make it on the bank's website, you can choose where you want the extra payment to go.@@SombraLocs
Turning a 30 yr into 12.4 yrs with weekly principal payments. At 34 yr old paid for home its a good start.
My grandmother was born in the Great Depression. Single mother, teacher in WV. She paid for EVERYTHING in cash. She died a multi millionaire and if you saw her at Krogrer you wouldn’t even notice her. She did it right
She enjoy the money ? Or was it only for a good story?
@ yes she enjoyed over 30 years of retirement!
pay it off early!!! too many elderly needing help and losing housing at age 70
I would also add don’t take out a mortgage after age 55 unless you can pay it off early. You will be in debt for the rest of your life.
I’m paying off my mortgage early. It’s my only debt
Same here...that is my only debt...used cars in good conditions...In fact I'm planning i getting another property and grow
Same here y'all if I do the biweekly I'll have it paid off in 10 years but do you thinking 🤔💭 I should do the biweekly with 1200 towards the principal every year
Same
If you plan to sell your current home and plan to buy a new one I recommend not paying it off early as your cash can be used to purchase the new home. If it’s your forever home then pay it off early.
New to this. But wouldn’t you have more equity if you decide to pay down the current mortgage and then sell?
I was making an extra payment every month for about 2 years on 2 properties but then I realized that those loan percentages were the lowest in history so I traded the extra payment for an extra property and now I'm starting more businesses instead of paying down my mortgages. Plus, using cost segregation to crush tax liability on rental property acquisitions is where the juice is at IMO. Don't pay down your mortgage, just put that money into another property, cost seg it and/or start a/another business! 😅
Smart moves
Depends on the person. Some gain freedom from no mortage, while others would rather invest.
Exactly. Depends on your goals.
If you’re more ambitious, that money could be put elsewhere. For others, their 401k, savings and home is all they want.
So the answer to pay off your mortgage quickly, is to make more payments more often.
Fantastic, now just make more money to pay off more money.
That's the secret. Just be rich.
6th Way - Make one payment of $250K.
I never thought of that.
I wouldn’t go below $100k in liquid savings to pay off a 3% loan if all else status quo.
Good point.
What’s the downside of paying off super early? Other than the fact the bank will be upset that had you over the barrel for less time?
Depends on the mortgage rate. If it’s very low, no reason to pay it off as you can invest it and make make a better return.
True.
@MAC LeVa the extra money could be better spent investing in more real estate that you can then rent out, the rent could pay that mortgage and possibly some of the mortgage in the home you live in. The extra money means you can save for a down payment to buy more real estate which the Tennant ends up paying for giving you more assets.
The comfort of owning your home. I'll take that. Never know when you will be down on your luck, or a pandemic hits and you bring in no rent and lose it all... so many variables. To each there own though!
Not making excuses but a lot of families don't have an additional $650.00 to put towards their mortgage each month. That's nearly 8k a year.
that is because most families either bought too much house, had too many kids, or have too many nice new cars....I live a frugal life. I bought my house 10 years ago and if I keep paying extra principal payments, I will be paid off in the next 24 months, shortening my 30 year loan to 12 years.
Got my house this year and I'm 32, ill pay off my 350k house by age 40. I bought it because it has 2 acres and houses in my town is expensive. I already knew houses will go down in value but saw the house and its a steal. It should be worth 430k.
Sounds like you got a steal. Can you share the original zillow listing
what state or city?
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?
Short answer yes...long answer hell yeah.
In the 10 years I have had my mortgage and been paying extra principal payments, I have saved $65k in interest so far.
I bought my house 10 years ago and if I keep paying extra principal payments, I will be paid off in the next 24 months, shortening my 30 year loan to 12 years.
No. Four reasons. 1) I have a 440k 2.625% VA Loan 0% down. 2) Tbill rates are at 5.4% with no risk, better to invest 3) VA loan at 2.625% is an assumable mortgage to any buyer not just veterans, so if I wanted to sell my home in this 8% mortgage climate it would be more of a selling point to the buyer to simply take over that miraculous 2.625% rate. 4) the home appreciates whether it is paid off or not.
When making an extra payment or simply paying any extra amount, do i have to call and tell the bank that i want to make sure it goes to the principle?
Always
there is an app on most mortage
If I’m paying extra 150 on my principal monthly for the past 6 years. Why is my mortgage company always changing my interest to principal percentage? I was at 45 in interest to 55 to principal. Now it change to 65 in interest and 35 to principal.
Sounds like a variable rate mortgage. You might want to considerate refinancing on a fixed rate mortgage.
this is amazing could you elaborate on the pretend refinance, so do i actually refinance and use that money to pay off house?
Oh I forgot to mention my office is in my home from my bed to the office is my travel time and from when I leave the house to go to the bank or to buy miscellaneous things for my properties that's a write-off so think about it
I was able to buy my house because the owner couldn't make the last two payments to own it outright. Im not going to let that happen on this house twice. Hopefully in 3 years i can pay it off.😊
the previous owner couldn't make the last 2 payments?....it sounds like maybe he/she didn't want the house.
That is just sad
Wow. So the secret to paying off your mortgage fast is to pay your mortgage faster? Holy hell I can't believe I never thought of that.
First comment! Pay it off. Look up the amount you get for a standard tax deduction and see if you can even write off the interest on the mortgage. If you cant then you're wasting money paying the bank.
Thanks for being the first comment. maybe. but you could also take that extra money and invest it in retirement accounts or the stock market where it may do better then the 3,, 4, or 5% you'll save by paying it off early.
Absolutely
Wouldn’t you want to leverage the debt to your benefit ?
Yes, you normally would.
My mortgage servicer won’t allow biweekly payments. It says if they want you to pay as much interest as possible.
I don't think they can typically control that. You should look into it.
@@RichonMoney no it's out of our control. thanks though, still good advice you have here. good idea on the extra quarterly payments, we can do that as a principal only payment.
Would you saying paying of mortgage early makes and sense if you have a 3 percent rate?
Only if it's a fixed rate and only if you cannot get investment returns above 3 percent including taxes. You could do both depending on current environment. Meaning, pay more on you're mortgage when you can't get savings investments higher than say 4%. If you can get savings over 4% then put more money in investments. Just a thought. Do same if you have car loan too.-John's wife
'Would you saying paying of mortgage early makes and sense if you have a 3 percent rate?'
Would you say it is better to make payments for 15 years and save a ton in interest payments or make payments for 30 years and not save any money on interest payments....there is your answer.
Yes as soon as possible
Just make a payment every day
I’ve saved for 4 years!! It’s the hardest sacrifice 😩😩😩
Security gained by having a paid off home is vastly understated in a lot of conversations about early repayments!
so true!
Primary Residence YES ASAP. Investment Property then NO WAY.
Why wouldn’t he also do step one (biweekly payments) seems like the easiest and most obvious one to do because it costs no extra money.
Epic advice!
What if you start paying off your mortgage early but wells fargo refuses to adjust your mortgage balance? Then, your mortgage is transferred several times.
The extra $$$ is deducted from your principal. How can they refuse? Hopefully, you have no penalty for an early payoff!
Why are we trying to pay off low interest mortgages as quickly as possible again?
true. I'm not saying you should. I'm saying, if you want to, here's how.
Not everyone has a low interest loan....mine is 4.3%.
In the 10 years I have had my mortgage and been paying extra principal payments, I have saved $65k in interest so far.
I bought my house 10 years ago and if I keep paying extra principal payments, I will be paid off in the next 24 months, shortening my 30 year loan to 12 years.
But what do you do if you dont have magical extra money to make additional payments.?
don't pay if off faster.
$250k mortgage. Where are those dream mortgages.
I've dealt with much smaller ones here in Alabama.
They’re everywhere, outside of the urban core.
Invent in a dividend paying stock that pays a higher rate than your interest. Or a rental property. Or or or or. The list goes on
I thought you said in a different video not to pay off your mortgage earlier so why would you give tips in order to do so
Lots of people want to!
250K$ that’s a house in the middle of nowhere
hahahahaha - true.
Whst is pretend refinance?
Im here finding a way to pay a 240k loan 30 year in 5 years 😂 how much should i add on my mortgage payment?
There are calculators for that,. personally, I wouldn't pay it off faster.
@@RichonMoney yah i saw it thanks planning to pay it off in 7 years starting next month thanks!
Imagine if you did all of these at once 😮
Awesome!!
Make bi-weekly mortgage payments, pretty much paying twice a month and you said it takes off 1 payment a year?! I’m not computing the math, help?
it means you make 1/2 a mortgage payment every 2 weeks instead of once a month. It squeezes an extra payment out because you are paying the mortgage payment every 28 days instad of every 30 or 31.
@@RichonMoneypay HALF!! Okay I didn’t hear pay half I heard 2 mortgage payments. Thanks
Snowball. Pay off your lower balance cars first. Then use that savings to pay off credit card debt. Then use those savings to supercharge your mortgage payoff.
Or, keep your 3% mortgage and invest the cash you’d use to pay off that mortgage to make a 6%, 7% or maybe even 12% or higher return. You will build wealth in no time. I want to have as high of a mortgage as I can till I die. Home is an appreciating asset, so it makes sense to take a long time to pay it off. Just think of how much homes cost 30 years ago. It’s laughable today. As long as you can make a better return on your cash, paying your home off early does nothing for your wealth.
Also I’d love to find a house for $250,000 where are they
I bought most of mine for under $100k
@@RichonMoney where/when? if you dont mind sharing, thanks.
@@reza2251 20 years ago in Detroit lol
@@reza2251 do you know what a foreclosure or a short sale is?
Mine 100,000 in 2008 Texas
Each year, pretend to refinance your house to the full value of your home.
Especially when it is paid off, so you know how much to invest.
Have a downpayment as your emergency fund and is consistently investing a mortage payment so you dont get too comfortable with your low expenses.
Great Ideas 💡
Glad you like them!
Median house in Orange County California is $1,0000,00 🤦♂️
We know someone that moved from CA. to Georgia, they bought a huge home for $450,000.00 and thought it was inexpensive! CA is expensive, but you're salaries are higher to offset. Even with above example, they thought everything was on sale from what they were use to.-John's wife
I did all of these but also got lucky. I went variable in 2011 and rates dropped. At one point my interest was 0.75%.
I’ll probably never see that again in my lifetime.
I sell carbon credits that the trees in my yard produces. 50 bucks a ton.
Hahahaha. Love it
Yes!
Paid mine off in two and a half years.
Of course avoid interest
its only 150 though
Okay i am wanting to make a monthly payment every week, amazingly i havent found any videos on how that would be for someone. i imagine it knocks it down to 7-8 years
There are websites that could calcualte that for you, bu it'll be way way faster!
Alot of factors play in there.....I have a 2.5 interest rate. I would rather that money max out my Roth IRA, HSA, and even though the market is down right now....Play the market. 2.5% is all I have to beat in order to make money not paying off my loan.
Agreed. I would always fully fund retirement accounts before paying down a mortgage. I'd also pay off other debt first.
So basically just pay more money into the mortgage.
Wow! You are really getting this!
Make sure pay more only to the PRINCIPAL.
Hard to justify paying off a mortgage at 3.2% when that extra money that could toward paying off early is earning 9%. But I get it: you can’t live in your stocks.
The 3.2 mortgage is actually 60% over the course the loan. Not including the upkeep, whether there are other escrow payments, etc…But it’s all depends on your pain point and tolerance.
Shouldn’t pay DOWN your mortgage, no. But you can pay it OFF with investments. But most people won’t because they see how much more valuable investments are.
Pay it off it’s not going to be used as a rental
Depends if your interest is 3% or lower there's zero point to paying off early
Yes, but some people still want to.
My interes is 2.875. Giving $500 extra every month and $1500 out of tax refund. Paying it off in less than 13 years. Peace of mind paying off the house early is great.
Paying off principal only is the key.
Doesn’t make sense to pay off mortgage early.
Well, then I guess I screwed up bad.
In the 10 years I have had my mortgage and been paying extra principal payments, I have saved $65k in interest so far.
I bought my house 10 years ago and if I keep paying extra principal payments, I will be paid off in the next 24 months, shortening my 30 year loan to 12 years.
@@formula112967 If you’re paying off a mortgage that has a lower interest than you can earn on investments, it doesn’t make sense.
That’s not opinion, it’s arithmetic.
@@Bobventk what investment you people never mention these investments
Pretend refinance???? What is that?
Pay the loan as if it was refinanced for 15 years instead of 30. So you pay it off faster, but it's technically still a 30 year loan, and you didn't spend the money to refinance or raise your minimum payment.
This advice is no longer relevant. If you got a mortgage between 2009 and 2021 then you have an interest rate that is lower than you will probably ever see again in your lifetime. If you ever need to extract equity from your home in the future, you’ll be paying 2-3x more than you would if you had just not paid down your mortgage early.
I would agree that is the logical choice in many cases, but you may not realize the appetite for paying off loans early. It's massive. It's not just a pure money issue. It's peace of mind and feelings about debt.
@@RichonMoney "Peace of Mind". Well said that is what me and the wife are doing. Paying it off in 13years. I will be 47yrs by then and don't need to stress as much. Aiming for an early retirement or working as a want not a need.
Ty
Landlords are psychopaths, get TF out of the rental game for your mental health, and realize they aren’t getting mortgages by playing by the rules
Ummmmm, whatever man!
How to pay a house off early: have more money
Buy the house you NEED, not the house you want....and then make extra payments.
😢
1500000 or more here silly.
I know.
take that extra invest it in the stock market, it grows at 13%-20%, in 5 years you will be a millionaire. never pay house off faster, take out refi loans @ 3% and invest that capital in market that returns about 13%-20%.. free money.
Your numbers are from a perfect world....I have more accurate numbers because they are facts....
In the 10 years I have had my mortgage and been paying extra principal payments, I have saved $65k in interest so far.
I bought my house 10 years ago and if I keep paying extra principal payments, I will be paid off in the next 24 months, shortening my 30 year loan to 12 years.
Only $650 more 😂
I pay more than twice that in just extra principal monthly, but then again, I bought the house I needed, not the house I wanted.
Don’t pay off your mortgage early. Take the extra money and invest it. As long as you’re getting a higher return rate than the mortgage rate you’ll end up with more money
Agreed
if you see how many older people who said that then have to depend on their kids, youll change your mind
@@autobotdiva9268 you’re leaving out the part where they refinanced or took a second mortgage
@@matthewroberts3724 thanks for proving my point. Those spoiled kids didn't help did it? Paying off the house is helpful
A better way exists. Use the MMA
Yes, that's a better way..... for YOU! or whoever is selling that crap. It's a horrible idea. Stay away from it!!!
As a lender I highly encourage you pay off loans early. I need the money.
Ok. Funny.
Nope I don't pay it off I may pay extra on it but my loans at 4%, my investments in real estate pay me way more than that I use my money to buy continuous investment properties now I don't have car payments and minimum amount of personal debt but I keep the debts from my real estate most of my real estate investment properties are paid off though
All good till the economy collapses
Lol. This is why you don’t get financial advise from social media
Actually, most people do get it that way, but I'll admit, it's not ideal.
Yeah, it would be better if people would promote getting real financial advice from advisors/wealth managers instead of just spouting nonsense content for ignorant sheep.
? Lol who has the money to make extra payments? How to pay off your mortgage fast = pay more. Yeah no shit Sherlock
Thanks!
I just paid an extra payment & my pmi is also coming off. Just have to budget
When the money is worth less and less, I’m not too keen on paying it off early.
Not so easy. You need the money first Jack
Might as well send your money to the graveyard 🤷. Cash flow is king
Rather put a renter in it, pay off as slow as possible and use the cash plus rental income to buy another property. 💡
Parasite.
Our rate is at 2.25. Yeah..not paying that off
Makes sense.
This advice is so bad, this video should be taken down
It's one of my most viral videos on another platform. People love it. What's wrong with it in your opinion?