THIS is How You Pay Off Your Mortgage Early

get rich slow with john wolfe hey today i want to talk to you about all of the questions i get about strategies for paying off your mortgage early now i know that the most popular of these is the uh pay every two weeks or pay twice a month method instead of paying once a month and hopefully today i am going to speak with you honestly and convince you why this idea every strategy not just that strategy is a very poor long-term financial decision a lot of people get caught up looking at the money the exact dollars and cents and then they forget to think about the heart they forget to think about long-term adversity and risk so i'm going to tell you a story of how i actually got the house that i'm sitting in right now like what happened and i think that understanding that story will really discourage people from trying these little schemes to pay off your home early now don't get me wrong if you can pay your house off in full i have done careful research and homes that are paid off in full are almost never foreclosed on and there's almost no way that it can be ripped away from you due to uh normal adversity uh job loss even a counting problems that you know aren't crime or fraud or whatever so let me tell you again uh kind of how i got this house and how that relates to this story so um the person who i got this house from was actually going into foreclosure hadn't yet been foreclosed on when i bought this and the reason for that was they became from a freak accident uh physically disabled you know the person had been working a real job their own business forever they've been making a distant living forever and they only owed something like sixty thousand dollars on this house yeah a house in portland that you know easily easily easily easily would sell for three to five hundred thousand dollars in decent shape maybe more right so you can get foreclosed on when you only owe sixty thousand dollars now let's just think and this wasn't his situation let's just pretend for a minute that you know he paid an extra five 500 on his mortgage payment every payment and you know without doing any math let's just say that was gonna make that 30-year mortgage a 12-year mortgage by the way that it's kind of realistic math just depending on the situation but anyways let's pretend he was doing that and then he got all the way down to where he only owed sixty thousand dollars freak accident became permanently disabled didn't qualify for disability because if you're a business owner you don't have to contribute every quarter and there's rules saying if you didn't contribute for enough quarters you don't you just don't get it the verities of the uh medicare medicaid social security system and where they totally leave people behind is another story but um you know he lost a giant amount of wealth on this house needing to sell it it wasn't technically a short sale because i was paying for more than the mortgage but because it was going to foreclosure he had to make a deal we needed to make it happen for him or he'd lose a lot more so um you know he lost a ton of wealth because he couldn't make a few mortgage payments even when he only owed a little bit and unfortunately that's why i would tell people all of these schemes and tricks and things you can do that are sometimes even sold as plans for paying off the mortgage early they're all a terrible idea because people don't consider the long-term risk of personal physical disability or there's any number of other things that can just hit people in their lives and stop what they need from happening and stop their ability from doing a mortgage so here's what i would suggest because if you're not going to do the whole get rich slow thing and you're not going to own multiple homes i would love it if you paid your home off in less than 30 years but here's how i suggest you do it make the normal minimum payments every single time nothing more nothing less but if you have the ability to put like an extra five hundred dollars put it aside into some very good smart conservative investment growth stock mutual fund index funds something like that and just do your 500 500 500 do it there though don't put it into a uh directly into the mortgage because the difference is you know three four years in the future you might have forty thousand dollars cash money when you have your bad year and lose your job or you could have a mortgage where you owe 40 000 yes well one of those two things will let you keep making the payments and maybe even give you some other resources for the tough time the other one will not so you have all the flexibility when you have that cash and then when your pile of money saved on the side is enough that you can write a check and just get rid of that mortgage and its totality that's when you do it anyways i hope this uh has helped explain the topic and at least my feelings on it if you do have any questions about any of those schemes or if you have anything else you want me to talk about here at get rich though with john wolfe let me know have an awesome day bye you

Channel: Get Rich Slow with John Wolf

Views: 34,094

Keywords: Mortgage, Interest, Finance, Get Rich Slow, Refinances, credit, Top 10, Portland, Oregon, Washington, Conventional, VA, Veteran, FHA, housing hacking, Home loan, First Time Home Buyer, Payoff, ODVA, refinance, tax holiday, Zero Down, Employment, Credit Repair, Credit Score, Rehab loan, Foreclosure, PMI, Vancouver, Credit, Meet Kevin, Graham Stephan, Minority Mindset, early payoff, how to pay off your mortgage early, pay off mortgage early, mortgage free, paying off mortgage, mortgage payoff

Id: g0oQkFboQaI

Length: 5min 59sec (359 seconds)

Published: Fri Sep 25 2020