How to Pay Off a Mortgage Quickly

thing to have a paid-for house as a matter of fact it is a great thing to have a paid-for house I've done detailed research in-depth research and we have discovered that 100 percent of foreclosures occur on homes with mortgages the borrower is slave to the lender get your house paid off so any other money above our 15% going into retirement above saving for kids college any other money that comes to us we're dumping it on the home mortgage and knocking out the home mortgage as fast as possible can you imagine how wealthy you would become and how fast you would become wealthy if you had no home mortgage oh I got to tell you it's awesome soon as you pay off your mortgage take off your shoes walk through the backyard the grass feels different under your feet the daily balance on typical mortgage stays high and stays the same for the entire month until you make your payment and a large chunk of your mortgage payment goes toward paying the interest on that loan and only a very small portion goes toward reducing the loan balance itself this then gives you new daily balance for the following month that stays the same until you make your next monthly payment here's what happens to our $250,000 mortgage over the years after five years 10 years 15 years after 20 years we would have paid more than what we borrowed and still owe more than half of the original loan amount after 30 years the total payments on our loan will be over half a million dollars that's because along the way it will also cost us almost two hundred eighty three thousand dollars in interest but the real cost the real cost of this 250 our mortgage for the average family is over seven hundred and thirty thousand dollars so if you have a thirty-year mortgage right now the real cost to you is almost three times what you borrowed another way to look at this is that you're really being forced to pay for three houses with your hard-earned money one for you and two for the bank now what happens is right now all banks front-load that's exactly how the bank make makes their money and if they tell you anything different the lion so what happens is when you let's say for example you took out a mortgage and it was for a hundred thousand dollars a hundred thousand if you paid them exactly what as promised you will pay them three hundred thousand dollars for that loan that's how they make their money so in other words you give the bank two hundred thousand dollars of free money there's a couple of different things that you can do you actually pay off the mortgage faster one of the things is to a weekly or bi-weekly that's supposed to monthly now that's actually a really big big aspect of paying off your mortgage faster because when you make weekly payments your balance gets bought down faster so you're paying interest on a smaller amount for a shorter period of time when you're a cooling interest interest that keeps going and going going when you're making the payments you're bringing your balance down your principal balance down so these are paying less interest on that amount in reality your monthly payments are not actually any bigger now the other option you have in this case is to make prepayment options so for example at the end of every year when you get your tax return you could use that money to put down towards your principal balance so again you're paying less and less interest so I paid off thirty thousand dollars and it's showing them what memorization by about one years [Music] so once you have a home that you know you're gonna stay it for the rest of your life it is your number one priority in life they need to pay off the mortgage let's say your monthly payment is $1,200 like we said if you just send in an extra $100 a month whatever your mortgage payment is divide it by 12 in this case it would be $100 send in $1,300 a month rather than 1,200 we'll take a 30-year mortgage down to 25 years if you want to send in more you can't let this hit that much minute fat mom could put it more even spend month you put you put in less here's how it's going to help you when you retire you're not going to have to make a mortgage payment so you don't need as much money in your 401k plan because you paid off your mortgage

Channel: Best CreditRepairCompanys

Views: 1,456,252

Rating: 4.7018571 out of 5

Keywords: mortgage, home loan, mortgage tips, home buying, money, home buying tips, Credit, loans

Id: 0IoIi522_Yk

Length: 4min 43sec (283 seconds)

Published: Thu Mar 07 2013