Don’t know how this works. I have a monthly mortgage of 30.000 K , total loan is 5.5 million. How will an extra 30.000 reduce , since only 900.000 in 30 years…
He paid off his mortgage because he bought his house for 7 raspberries and a shotgun back in the 70's. Like to see him do it today with house prices in the millions
I have a mortgage rate of 3.3%. Why would I want to pay it off sooner? Invest the money and make money. Putting cash into the house does not make sense.
Just pay £50 a month more each month. Then, when you get your new mortgage deal and your payment goes down, don't change the amount you pay. Just keep paying the same as you always have. For you nothing will change but for your mortgage you will be saving £10000's on interest that you would have to pay and taking 10+ years off your mortgage
Love the clowns in the comment complaining about cost of living and not having money to buy a house but also buy their Starbucks and takeout daily, go to expensive colleges when they don't need a degree and opt in for $800 car payments.
Or you could have done the same thing, but put the money in VOO, and made significantly more money. Particularly if your home interest rate is low. If your home is under 4% interest, never pay a single dime extra, and invest any money you have spare.
If you didn’t know, anytime you get a loan the interest builds up when you don’t pay anything so what you can do is have the big take a penny out of your account every single day and technically you pretty much would have no interest because interest only accumulates for loans or mortgages if there’s no money being transacted into the account, this does not work for credit card, though as far as I know
I did some digging and at a 6% interest rate which is what the current rates are at youd pay off your mortgage in 23 years not 17. None the less its great advice because you save roughly 35% of the total interest over the livetime of the loan
If you have good interest rate, NEVER pay off early. Would you rather that extra $1600/mo pay off 4% interest, or go into the s&p and gain 8% interest? Yeah you pay it off 14 years faster, but at the end of the 30 years you'll have less money than if you invested the difference. Leverage your good debt, pay off your bad debt
Soon as you sign the agreement your house is paid banks don't get loans they give debts you can refuse the pay on an instrument if fraud is detected. Federal Reserve notes is not money they are promisary notes debt instruments. Article one section 10 no state shall coin money Except gold and silver only gold and silver could be used to Discharge debt. You're welcome😎😎
It always boggles my mind when people pay off their home mortgage with their cash. That's one of the worst financial decisions you can make. Why not pay 7.25% on your $200,000 mortgage and deduct 100% of that interest on your taxes every year. Instead of the bank having that extra $1562.35 a year going into their mutual fund, it goes into yours. At today's rates based on the 200k example you would have paid $291,161 in interest on your home loan ($491,161 in total payments). Instead that $1562.35 would have been paid to your IRA at a rate of $130.20/month.. When you refresh the screen on your IRA the balance the same day you pay off your 30 year mortgage is over $1.2 MILLION. Yes Dad this does indead work. However, most 30 something couples or individuals are going to want that mortgage interest. After you max out any employer contributions to a 401k you want to put your extra money in your ROTH IRA if you qualify or tax differed retirement plan tied to the stock market (not the terrible annuity your insurance guy is trying to sell you). Go to your credit union or other trustworthy investment firm that is licensed to sell Mutual Funds. I promise my math on all this is 100% accurate. God speed and don't forget that building wealth starts with making a monthly budget to see where it all goes.
Wrong. Let the mortgage at 5% ride. Take the extra payment and put it into an investment account with compounding interest. The percentage gained from the investment account will vastly put perform the mortgage interest rate.
Dude that doesn’t work, if you sign a contract on 30 years you are not allowed to break the contract by paying extra. That way the banks lose money from you and that they do not accept, what you can do tho is every 5 year is re agreement of the loan interest and when not bound by your 30 years agreement between agreement pay some extra.
Except mortgages don't apply extra principal payments to your loan. They create a second account that they hold your extra payment in accruing interest on your money while still charging you full interest on your loan. You'd be better off getting your own high yield savings account and putting that money there. Also most mortgages have an early pay off fee. They are going to get every penny outta you that they can. No matter what you do.
43 comments
I just payed off my non existend mortgage by not paying $500,000 for a 1200 square foot house
Interest rate on the mortgage has to be 15%+ for this to come out even close to what the dad is suggesting.
This is old garbage advice. Don’t take a mortgage. Get a first lien heloc. Don’t pay the 7 years of almost complete interest.
Don’t know how this works. I have a monthly mortgage of 30.000 K , total loan is 5.5 million. How will an extra 30.000 reduce , since only 900.000 in 30 years…
Doing this with my RV.
Answer – The government hadn’t made it nearly impossible to buy a home yet…
And, split up payments during the month. Pay half then pay the other half two weeks later
He paid off his mortgage because he bought his house for 7 raspberries and a shotgun back in the 70's. Like to see him do it today with house prices in the millions
I got 40k left on the house took 6 years!
I have a mortgage rate of 3.3%. Why would I want to pay it off sooner? Invest the money and make money. Putting cash into the house does not make sense.
Just pay £50 a month more each month. Then, when you get your new mortgage deal and your payment goes down, don't change the amount you pay. Just keep paying the same as you always have. For you nothing will change but for your mortgage you will be saving £10000's on interest that you would have to pay and taking 10+ years off your mortgage
Love the clowns in the comment complaining about cost of living and not having money to buy a house but also buy their Starbucks and takeout daily, go to expensive colleges when they don't need a degree and opt in for $800 car payments.
Or you could have done the same thing, but put the money in VOO, and made significantly more money. Particularly if your home interest rate is low. If your home is under 4% interest, never pay a single dime extra, and invest any money you have spare.
some more golden boomer advice, gtfo
If you didn’t know, anytime you get a loan the interest builds up when you don’t pay anything so what you can do is have the big take a penny out of your account every single day and technically you pretty much would have no interest because interest only accumulates for loans or mortgages if there’s no money being transacted into the account, this does not work for credit card, though as far as I know
I live 2 minutes from SIUE
Yeah pops that sh*t is definitely not working today.
Plus all he said "we paid it faster" 🤣🤣
fk out of here
I did some digging and at a 6% interest rate which is what the current rates are at youd pay off your mortgage in 23 years not 17. None the less its great advice because you save roughly 35% of the total interest over the livetime of the loan
If you have good interest rate, NEVER pay off early. Would you rather that extra $1600/mo pay off 4% interest, or go into the s&p and gain 8% interest? Yeah you pay it off 14 years faster, but at the end of the 30 years you'll have less money than if you invested the difference. Leverage your good debt, pay off your bad debt
Are people so ignorant that this qualifies as advice? Make extra payments and your mortgage will be paid off faster… duh
Don’t buy something you can’t afford
Make payments As much as possible. Anyone telling you otherwise is haram
Why not do a 15 year mortgage then? The rate is lower.
Soon as you sign the agreement your house is paid banks don't get loans they give debts you can refuse the pay on an instrument if fraud is detected. Federal Reserve notes is not money they are promisary notes debt instruments. Article one section 10 no state shall coin money Except gold and silver only gold and silver could be used to Discharge debt. You're welcome😎😎
It always boggles my mind when people pay off their home mortgage with their cash. That's one of the worst financial decisions you can make. Why not pay 7.25% on your $200,000 mortgage and deduct 100% of that interest on your taxes every year. Instead of the bank having that extra $1562.35 a year going into their mutual fund, it goes into yours. At today's rates based on the 200k example you would have paid $291,161 in interest on your home loan ($491,161 in total payments). Instead that $1562.35 would have been paid to your IRA at a rate of $130.20/month.. When you refresh the screen on your IRA the balance the same day you pay off your 30 year mortgage is over $1.2 MILLION. Yes Dad this does indead work. However, most 30 something couples or individuals are going to want that mortgage interest. After you max out any employer contributions to a 401k you want to put your extra money in your ROTH IRA if you qualify or tax differed retirement plan tied to the stock market (not the terrible annuity your insurance guy is trying to sell you). Go to your credit union or other trustworthy investment firm that is licensed to sell Mutual Funds. I promise my math on all this is 100% accurate. God speed and don't forget that building wealth starts with making a monthly budget to see where it all goes.
Math doesn’t add up!
He has mistaken 27 years with 17 years! What he means to say is it will take you 27 years instead of 30!
If the wife is a working wife and she contributes it’s gonna be more like 24 years.
And if you have a 3.25% mortgage you’d want to do this why?
Sorry did he say start with 30 year? Is that in years?
Look at all the forever renters
How to make mortgage go away faster? Pay it off! Who would’ve known.
I really hope no.one believes this works
Wrong. Let the mortgage at 5% ride. Take the extra payment and put it into an investment account with compounding interest. The percentage gained from the investment account will vastly put perform the mortgage interest rate.
Make sure when starting the loan that the bank allows it. In some instances the type of loan might not allow the extra payment against the principal.
Dude that doesn’t work, if you sign a contract on 30 years you are not allowed to break the contract by paying extra. That way the banks lose money from you and that they do not accept, what you can do tho is every 5 year is re agreement of the loan interest and when not bound by your 30 years agreement between agreement pay some extra.
Except mortgages don't apply extra principal payments to your loan. They create a second account that they hold your extra payment in accruing interest on your money while still charging you full interest on your loan. You'd be better off getting your own high yield savings account and putting that money there. Also most mortgages have an early pay off fee. They are going to get every penny outta you that they can. No matter what you do.
This is 100% fake. 17 extra payments during a 17 yr stretch will not pay your loan off 13yrs early!
He could have taken a 17 year mortgage instead 😂
Also cheaper in the 70s or 80s
Not correct!
True for pretty much all debt. If you pay more than the minimum, you pay your debt off faster and pay less overall in interest.
He forgot to agree to have a reasonable and sensible relationship where conflicts within are resolved within
Wow! This comepletely wrong! You take 5 years and 11 months off a 30 year mortgage, do the fuckin math
Every check I give a little extra payment, from 90 to 300$ .