Good video, it was a real wakeup call when I read that amortization schedule on my mortgage and you explained it really well. I had a mentor explain to me that the advantage to having high mortgage interest is that it is all tax-deductible, which made me feel better. However, I am still considering making some extra payments to increase equity. Tax advice/advantages seems out of the scope of your video, but I thought this is an interesting piece of information. Looking forward to future videos!
Thanks! Glad you enjoyed the video! I don't give tax advice, but I do address your point in this short: th-cam.com/users/shorts0w49uUnVgao?feature=share. Long video here: th-cam.com/video/hJCxOIf1g0U/w-d-xo.htmlsi=7mGTAaeGjH7uVIpQ
I wanted to comment to address something you said. Also I found your youtube channel and I just felt like you resonated with me and my personal opinions. Commonly you'll hear people bark and say that you'll gain over the long term if you just invest the money and pay off your mortgage over 30 years. However, you and I cannot predict the market changes. There is no guarantee that the market will be up during the time in which you retire or start withdrawing from your investments. One of my favorite phrases is "Past performance is no guarantee of future results." for this reason. However, paying off your mortgage earlier is a risk-adverse option, as well as it guarantees your rate of return. If you mortgage is 5%, you guarantee a 5% return on your money plus risk-aversion. If the market falls and you lose your job, its easier to make do without a mortgage payment. If you get sick, its easier to take time off without a mortgage payment. If your parents need 24/7 care and you need to uproot your life to move and take care of them, then potentially selling and moving is an option. Having a paid off mortgage A) guarantees your interest rate is your rate of return, and B) guarantees flexibility and ability to adapt easier in life situations. If the market goes down, you lose job and your investments fall at the same time - you're just sh*t out of luck. All you have is your savings and hopefully it is built up enough to weather the storm. Sometimes the mathematical equation does not line up with real life. So A+ for recommending to pay off your mortgage quicker and to frontload your mortgage if possible.
Man it seems overwhelming to buy a house even with early payments. One of the reasons why I have a brokerage account rather than putting everything in an IRA is because I want to use that money for a larger down payment, but it’s cutting down on my retirement. Maybe it’s not the wisest but I really don’t want to be renting my whole life, either.
Yeah...it's overwhelming for a lot of people right now. But if owning is a goal for you, keep at it. You'll get there! Don't think I would stop retirement saving so i could save for a down payment though. You can do that for a couple years, but not longer than that.
Great Video! 🎉
That’s really useful thanks for the advice 👊🏻👍🏻
You're welcome! Glad u enjoyed the video.
Good video, it was a real wakeup call when I read that amortization schedule on my mortgage and you explained it really well. I had a mentor explain to me that the advantage to having high mortgage interest is that it is all tax-deductible, which made me feel better. However, I am still considering making some extra payments to increase equity. Tax advice/advantages seems out of the scope of your video, but I thought this is an interesting piece of information. Looking forward to future videos!
Thanks! Glad you enjoyed the video!
I don't give tax advice, but I do address your point in this short: th-cam.com/users/shorts0w49uUnVgao?feature=share.
Long video here: th-cam.com/video/hJCxOIf1g0U/w-d-xo.htmlsi=7mGTAaeGjH7uVIpQ
I wanted to comment to address something you said. Also I found your youtube channel and I just felt like you resonated with me and my personal opinions.
Commonly you'll hear people bark and say that you'll gain over the long term if you just invest the money and pay off your mortgage over 30 years. However, you and I cannot predict the market changes. There is no guarantee that the market will be up during the time in which you retire or start withdrawing from your investments. One of my favorite phrases is "Past performance is no guarantee of future results." for this reason.
However, paying off your mortgage earlier is a risk-adverse option, as well as it guarantees your rate of return. If you mortgage is 5%, you guarantee a 5% return on your money plus risk-aversion. If the market falls and you lose your job, its easier to make do without a mortgage payment. If you get sick, its easier to take time off without a mortgage payment. If your parents need 24/7 care and you need to uproot your life to move and take care of them, then potentially selling and moving is an option. Having a paid off mortgage A) guarantees your interest rate is your rate of return, and B) guarantees flexibility and ability to adapt easier in life situations.
If the market goes down, you lose job and your investments fall at the same time - you're just sh*t out of luck. All you have is your savings and hopefully it is built up enough to weather the storm.
Sometimes the mathematical equation does not line up with real life.
So A+ for recommending to pay off your mortgage quicker and to frontload your mortgage if possible.
Completely agree with you. You never know what life will throw at you. I'd rather the peace of mind of a paid off home. Thanks for the comment!!
Man it seems overwhelming to buy a house even with early payments.
One of the reasons why I have a brokerage account rather than putting everything in an IRA is because I want to use that money for a larger down payment, but it’s cutting down on my retirement.
Maybe it’s not the wisest but I really don’t want to be renting my whole life, either.
Yeah...it's overwhelming for a lot of people right now. But if owning is a goal for you, keep at it. You'll get there!
Don't think I would stop retirement saving so i could save for a down payment though. You can do that for a couple years, but not longer than that.