ACCOUNTANT EXPLAINS How to Pay Off Your Mortgage Early (The Ugly TRUTH About Mortgage Interest)

[@GabrielleTalksMoney]

What strategy would YOU recommend to pay off a mortgage early? Check out the Pay Off Mortgage Early Template here ➡ www.gabrielletalksmoney.com/product-page/pay-off-mortgage-early-template

[@freefree1664]

I want to purchase this, just checking if this spreadsheet comes as a google template or excel? Thanks

[@danalist209]

Hi Gabrielle I just found your site today and I’m so glad I did. You have some very helpful content. Thank you 🙏. I bought your pay off your mortgage template today and couple questions. I pay my mortgage biweekly already and have an increased biweekly payment arranged with the bank already. How do I enter my information to give me correct answers being biweekly already ? Also I entered my monthly expense as the increased payment amount I already have set up with my bank. Ie $563 increase to $700 so I said $1400 a month with an amortization of 14.9 years because that is what it is with the increased payment I have set up as autopay with my bank. Is this giving me correct numbers how I’ve entered things ? Appreciate any direction you can offer

[@justwait9822]

Nah, not gonna pay my 4% interest mortgage early when the sp500 returns a historical average of 8-10%.

[@justwait9822]

​@@freefree1664there are free calculators out there.

[@JBoy340a]

We refied (11% to 8%) and then as our salaries increased started making additional payments that got applied 100% to the principal. Paid off the 30-year mortgage in a little over 11 years.

[@cksh4182]

I am doing all 3 strategies! $1400 extra monthly lumpsum, regular weekly payments. and just recently increased my weekly amount by extra 18 dollars lol.

[@RJ9mech]

For each 18 dollars, it's less interest paid! Way to go!

[@kimberlyhenninger6346]

SO every month on a certain day you pay $1400 on the principal? How much do you pay weekly? Just curious because I want to do this with my home and my car loan.

[@cksh4182]

@@kimberlyhenninger6346 1400 on 1st of every month. and i do 548 weekly as my regular accelerated payments.

[@nathanhiggins3216]

@ckshq48 great information and video What if I can show you another way to achieve the same goal in less time using no additional income or payments

[@wmarvinhobert]

I was a stay at Home mom with no money in my IRA or any savings of my own, which was scary at 53 years of age. Three years ago I got a part time job and save everything I make. After 3 years, I am 56 yo and have put $9,000 in an IRA and $40,000 in my portfolio with CFA, Dorian j Townsend. Since the goal of getting a job was to invest for retirement and NOT up my lifestyle, I was able to scale this quickly to $150,000. If I can do this in a year, anyone can.

[@bhebhedingus8124]

We applied for mortgage on 2012 (5 yr. term with a 25yr. amortization period). Since we don’t like debts, I worked hard (hubby can’t due to medical condition). We made sacrifices, no eating out, no vacation… just plain work and savings… we paid our mortgage in 2021 (and it was the BEST feeling, FREEDOM!) We increased our bi-weekly mortgage payment and we paid the maximum amount allowed annually (20%) to pay towards the principal. And now, we have been free of debts. We are doing an addition space in our house and paying it cash😊.

[@null1808]

This is a very analytical accountant take, which I appreciate. However sometimes the more advantageous scenario isn't to pay off your mortgage early; Its to take the payments that you would have otherwise used to pay down principal and invest it into an ETF like VOO or SPY and within 25 years that money over the time would essentially be much higher than your starting balance.

[@rachelnavarro2897]

It deppends on how tou feel about it, for me also an Accountant the best feeling was also to payoff my house and get rid of the those interest payments. Now we can focus on investing and saving and traveling.

[@Telor1998]

So keen! My wife and I are 50k additional so far over 2 years and updated it again to 1k a week fortnightly recurring and the calculator says around 7-8 years until $0 😮 gives me so much motivation to keep smashing it out

[@chitchatvn5208]

the key point is "focusing on if you can afford the payment". That was how lenders and salesman want us to think. They tried to hide the true cost from you and how it could trap you. Next time you are dealing with a salesman don't let them forcing you on focusing on if you can afford a payment, ask them about the true cost.

[@poonekar]

I have been investing in QQQ for 22 years with an annual rate of return of 14.4%. The 8k I put in 2002 is today worth 150k. Using your example, imagine not paying down the 5% mortgage faster and instead putting that towards an investment like the QQQ. You would think you saved a few hundred thousand dollars in interest, but you would actually give up millions in stocks appreciation.

[@6bat6manz6thesh1t]

What’s qqq

[@ychongy]

Imagine doing that and having your mortgage paid off 😮

[@Sam-d8o6q]

True. But then there is a risk element there that your investment DOESN’T pay off. Each to their own, based on their own risk tolerance.

[@ricardobenjamin2756]

True but what about peace of mind. You can lose that money Tom Now what, with a paid off house that’s your leverage 😮

[@poonekar]

@@ricardobenjamin2756 Peace of mind depends on your confidence in your ability to invest well during good and bad times, which in turn comes from experience and skills. I have seen multiple crashes in my 24y investing journey and when investing in stocks, I use Technical Analysis to detect them early and hedge my portfolio and then when they start turning around, as great opportunities to remove the hedges and go long aggressively. I also have rental properties that generate consistent cashflow so I am not worried about becoming a forced seller at the bottom of a crash because of a job loss etc. So I am not only not scared of crashes and corrections, but I look forward to them. But if you are not confident in your investing skills, having low risk appetite is a good thing and paying your house down is the right thing for you.

[@jwuhome]

It really depends on your interest rates and if you can get better return from your extra money. Then you can decide paying off your mortgage early really making sense.

[@azyt]

Can you elaborate?

[@cshaun]

This is such a great video - very informative and to the point. I have pretty decent financial literacy, but this really showcased the scenarios well. We've been saving up for lump sum payments with bonuses and tax refunds, but the extra monthly payment towards the principal is definitely something we can afford right now.

[@stupedcraig]

Nice video! I was paying more into principal every month when my loan was at 4.25% but once I got it refinanced to 2.75% I pulled back most of that cash and put it into total market ETFs.

[@AW-gj4ji]

The bank let you refinance like that without a “reinvesting”?

[@stupedcraig]

@@AW-gj4ji No reinvesting. Just normal refinance and invested the money I earmarked for extra principal payments because the rate was so low.

[@winniethepoohandeeyore2]

Started overpaying my principal when the 1st was due in early summer 21, knocked years off the life of the mortgage in almost 3 1/2 years also every COLA we add another $10 a month to the payment, This Jan 25, we will be paying $50 more on a $126 a month principal, we have been paying far more towards in principal than interest for awhile now.

[@J.FamGuy.M]

I explained to my 8 year-old daughter the difference between the avg yearly appreciation of our home versus the cost of the money loaned to us. Based on 30 year avg, we would lose money if interest is above 5-6% and gain money if it is below. Most years, you will earn money on real estate. Having a mortgage isn't a bad thing as long as you are making good decisions with your money. Having a home repossessed or being house poor is a lot worse. Gabrielle has lots of great ideas on those risks and how to avoid those financial pitfalls. First National has an option of upping pymt by 15%: we have probably used this option the most.

[@Wongoo]

I wished you had shown the synergistic effects of using 2 strategies to see what it would look like. Still a fantastic and great video overall!

[@adamhero459]

There are many calculators online that can do this for you.

[@tele1311]

Great video I don’t think people realize what they’re paying and how much they’re paying over the long run. I personally am doing a biweekly payment with an additional monthly payment for principal.. ❤.

[@reyon33]

It really depends on your interest rate. I can write a check to pay my mortgage off today. But I won't. I have a 2.2% APR. I will be a fool if I pay off my mortgage early. My money is easily making 10% return. When you do pay off your house, your money is tie down in nonliquid asset. It is not making any return unless you rent it out. it is not easy to access it. If you have a low interest rate, it is better to NOT pay it off and invest in the market.

[@RichardGeorge-pz3wm]

Purchase (2) modest investment rentals. (I own 4.) It is a part-time hands-on business and a ticket to a comfortable retirement if you are willing to deal with the headaches. I buy clean low-mileage cars in cash and I carry no balance on credit cards. I "retired" 10 years ago and my portfolio is worth more now (inflation considered). I will not outlive my resources if I live to be 100.

[@peterzhang6091]

My thoughts about mortgage 1. The loaner helps you get a house when you don't have the cash. So you have the chance to ride with property appreciation. So it is a good thing. 2. Following the contract (payment terms) is the most economical way to pay off your mortgage if you manage your money correctly. The reason is that there will incur fees if you modify the payment term and inflation will make the payment worth less over time. 3. When mortgage rate decreased dramatically you have a chance to refinance the loan. But the rate difference does not equal to your savings. So you need to calculate carefully. 4. Focus more on the networth other than only the debt.

[@kimberlyberry9453]

Awesome video just bought my house and have been making extra payments to the principal thanks

[@Lester-ht2wj]

Hi Gabrielle... Thanks for the video. Very informative. You have highlighted the HUGH amount of interest that we've been paying for our mortgage loan. This will really cause us to consider ways to pay less interest to the bank so that we can use that amount for better use. Thanks for sharing and your explanation is really clear and easy to understand for people who have little financial knowledge.

[@FranksPianoscape]

What i got from this is, it's a good start to set up biweekly payments.

[@gabyturner4168]

This was a great, very clear video. I’ve been doing the 2 payments but I will add one or your other options. I wish young kids will watch this video before buying a property. Thank you very much

[@christellehamon8505]

Great template . I agree with the previous comments. Would be great to get additional simulations to see the effects if we had 2 or all the 3 strategies . Maybe a future video ?

[@dmitryg6353]

The secret no one wants you to know how to pay off mortgage early: SEND MORE MONEY! 😂

[@cnkis]

😂😂😂😂😂😂 right?!

[@mohammadsagar]

true. and sacrifice more like. Live like dogs, work like slaves and have no free lives to enjoy or grow. The market itself is 200% overpriced. letting the price fall would solve all miseries. but .. they dont talk about reducing the price, increasing the supply. they just advises ..for eating less, wearing less, working more, spending time with family less.

[@Azel247]

I put $287k of lump sum towards my mortgage and also increased the monthly payment by $150. By doing this, I shortened the payment period by 20 years 9 months and saved $700k in interest payments.

[@l3xx000]

Well done! I could have used the spreadsheet model you created and ended up creating my own years ago, but I like how you added graphing and round functions in Excel. I am going to share this with others who could leverage this advice to plan their mortgage payments via scenarios models. Also second the comment about the weekly option, and perhaps how "accelerated weekly" and "accelerated bi-weekly" options impacts the overall interest paid over time. Another lens for you - is the ability to project a bit further based on 5, 10, 15 year mortgage renewal intervals, I think in some cases people don't model what an interest change impact might look like. Thank you for creating this video!

[@bernardpar1042]

damn! adding additional payments "$200" will help a lot! thanks for the knowledge.

[@DuyNguyen-uz9ti]

Have you looked into how people say HELOC can help pay your house faster? What are the pros and cons using this strategy?

[@mickelsonfamilyhomestead]

I can’t believe sometimes you can’t pay more then they would like you too or you get a penalty that’s insane to me!

[@Lennoxrenol]

Great video! Thanks for breaking down the scenarios and even showing that there's no one true strategy to pay down your mortgage quicker. I'll definitely use this to determine when I own a certain % of my home and when I can stop paying private mortgage insurance. Definitely subscribing for more of this type of content :)

[@nathanhiggins3216]

@Lennoxrenol great information and video What if I can show you another way to achieve the same goal in less time using no additional income or payments

[@marcelpatel9017]

Accelerated bi - weekly payments are key. Shaves off 7-8 years of payments. I'll be mortgage free in a few years. Double up payments before the yearly anniversary of your mortgage also helps.

[@jacobliu4298]

Great video! If I am making extra payments every month, do I have to let the lender know ? Or the interests charged is automatically recalculated? (I had to ask for recast in order to reduce the monthly payment )

[@ronalcasid3844]

If you make a lump sum payment you can consider recasting your mortgage at the same time. Recasting will reduce the interest and principle of future payments. However, you should continue to pay the original payment plus additional principle to pay off your loan early.

[@akunamatata4266]

What is recasting ?

[@ronalcasid3844]

@@akunamatata4266 When recasting you make a large lump sum payment. Then mortgage company can recalculate your remaining installments as if you made a larger down payment from the beginning of your loan.

[@lindaxiong7588]

Hi Gabrielle, love your video about finances. Can you do a video on how you choose Accounting as a career and how you study for the courses. Currently am an accounting study and not sure if I’m into audits or tax. Advice is appreciated.

[@Toto-tf1ir]

Gabrielle, I hear from people with a lot of money that they would choose to pay a mortgage over buying a house with cash(one payment) so that they can get a tax write-off. Can you compare the benefits of paying off a mortgage early versus getting a tax write-off? I'm in the US.

[@quehuongbaby]

Misleading on case #2, you keep the same payment like the #1 after 20,000, then you pay off faster.

[@Shadowlee5]

The purpose of taking out a loan is not to save money. It’s so you can live comfortably month by month. If you wanted to save money it would make more sense to save up first and pay in cash w 0 interest. Paying more per month will save u money but it’s also reducing the comfort of ur life bc that’s money taken from other areas of ur life.

[@canpin]

This is true. I finished my mortgage in 5.5 years! After that, my savings is increasing (like its in steroids) monthly 👍 Thank you!

[@aBurritoAbroad]

Thank you for this informative video, Gabrielle! Question: My mortgage is 5.0% Fixed on 400k loan - Even though I pay principal, my interest won't deduct until the 3 year period? or do I understand this incorrectly? So, would it be better to save money for 3 years and pay when the mortgage opens? because the interest won't decrease even if I pay now until the mortgage reopens Thanks!

[@Hotmessbudgets]

Thank you for sharing 😍😍❤️‍🔥 new subscriber 😇

[@clicksongo589]

if I am getting more interest on a saver account than my mortgage account interest, should I still pay off my principal ?

[@austinbar]

I’m closing in on my retirement and I’d like to move from Minnesota to a warmer climate, but the prices on homes are stupidly ridiculous and Mortgage prices has been skyrocketing on a roll(currently over 7%) do I just invest my spare cash into stock and wait for a housing crash or should I go ahead to buy a home anyways?

[@jcurdrayeric243]

If anything, it'll get worse. Very soon, affordable housing will no longer be affordable. So anything anyone want to do, I will advise they do it now because the prices today will look like dips tomorrow. Until the Fed clamps down even further, I think we're going to see hysteria due to rampant inflation. You can't halfway rip the band-aid off.

[@rogerwheelers4322]

Considering the present situation, diversifying by shifting investments from real estate to financial markets or gold is recommended, despite potential future home price drops. Given prevailing mortgage rates and economic uncertainty, this move is prudent, particularly due to stricter mortgage regulations. Seeking advice from a knowledgeable independent financial advisor is advisable for those seeking guidance.

[@joshbarney114]

This is precisely why I like having a portfolio coach guide my day-to-day market decisions: with their extensive knowledge of going long and short at the same time, using risk for its asymmetrical upside and laying it off as a hedge against the inevitable downward turns, their skillset makes it nearly impossible for them to underperform. I've been utilizing a portfolio coach for more than two years, and I've made over $800,000.

[@FabioOdelega876]

@@joshbarney114 I appreciate the implementation of ideas and strategies that result to unmeasurable progress. Being heavily liquid, I'd rather not reinvent the wheel, thus the search for a reputable advisor, mind sharing info of this person guiding you please?

[@joshbarney114]

Finding financial advisors like Marisa Breton Dollard who can assist you shape your portfolio would be a very creative option. There will be difficult times ahead, and prudent personal money management will be essential to navigating them.

[@Brandor667]

When it comes to a lump sum payment, do you know why it is limited per year? That makes no sense lol Is it because the bank wants to keep the money coming in as revenue/income?

[@LeotaNewcomb-og9yc]

It's to ensure they profit from the mandatory interest paid, more predictable for the lender. Usually it's a 5 year term, and you can pay up to 20% per year of that term but those numbers vary from lender to lender.

[@torontohomestead9254]

The slower you pay it off, the more interest they make long term. That's why.

[@brianadams6204]

If you took that lump sum of $20k and put it in a HYSA account then pulled $1666,00 a month to put on your mortgage you would end up better off correct?

[@quokkaYT]

Does this make sense with a lower 2.5% interest rate loan? Wouldn’t I make more investing this vs the amount I save in interest? Is it straight forward as knowing that I can expect 4.5% in HYSA or 8% from the SP500 if I invested the $200/mo in either of those options?

[@ychongy]

Numbers are there, but imagine losing your job or having a tragic life event. If you do this and lose 2 lbs every week. But somehow I just see a bunch of fat people.

[@anthonyroberts7641]

Do you guys in America & Canada have offset accounts?

[@crystalmethshrimp]

Because a mortgage’s interest is front loaded would it be wise to double pay the first 1/3. Pay 50% extra on the 2/3 and regular payments on the last third? Giving me more capital in invest in years 10-30 in a 30 year mortgage?

[@angelalee8547]

Like someone else said, it depends on your mortgage interest rate and whether you can get better return investing elsewhere. It’s not always the best idea across the board. We had a 3% interest mortgage that we paid off in 8 years. Value of the house went up 60% during that time. In hindsight we probably would have made more money investing elsewhere bc we had a low interest rate and stocks were doing so well during that time. And we can’t buy rental properties or stocks now bc they are so high.

[@InflationProof28]

You can buy rental properties with unpopular methods. How much do y'all have to invest?😊

[@TMHYAH]

Would you recommend paying off the mortgage if the rate is less than 3 percent?

[@SwarleySwablu]

If S&P 500 averaging 8% growth per year (this year already 20%), and your house appreciates by 5% per year, then your asset growths faster than your mortgage. So if you want to downsize when you retire, your home will be worth more than double. If your house appreciates, then you can leverage it to buy another house and rent out one of the houses. So long story short is to discuss with your financial advisor. It isn't always wise to pay off your mortgage.

[@jorgearias1971]

Hi, I love the way that you explain the formula, but I would like to see if you can share the Excel spreadsheet I do not know how to do it

[@raulvelazco4912]

Loved this video and I will definitely be using your template.

[@discreetphaseresolutiononi299]

I would say I don’t know how I find you on KZbin, but I know better. My husband and I have been in prayer so that we get our credit scores up and our credit record in great shape so that we can purchase our forever home. It was no one but God that led me to *Pecuniary backdoors* . I thank God for this wisdom. Bless you.

[@discreetphaseresolutiononi299]

*I’m glad it works for me and i am sure it will works for you as well*

[@leungfy1]

instead of paying off mortgage early. Why not invest extra cash on investments l(e.g. stocks) with higher than 4-5% ( interest rate) return? i don't mean using Smith Manuveur but simply invest and reinvest

[@azyt]

Is there a suggested amount that ppl put towards down payment? Should we put down as much as we can or just the minimum required?

[@ychongy]

That depends on how long you plan to live in it.

[@adamhero459]

There are plenty of reasons why you may want to put less or more. This also depends on where you live as fees and other things may be different than in Canada where she and I live. But if you are talking about a minimum you should put down in terms of saving on interest and fees, in Canada , if you put 20% down you can avoid paying for default insurance. If you have less than 20% down, this insurance costs around 2% to 4%. This is tired based on the percent you put down. The minimum I recommend is 10%. This is when the default insurance fee starts to decrease.

[@snowbound322000]

Whats the best option if we have a 750,000 principle, at 3.2%, but do not plan to live out the 30 year life of the loan?

[@joyndem6574]

This was really good thank you for sharing the breakdown.

[@temmietaft2552]

I love this video. It’s such a huge help.

[@oakjoolee138]

so glad to fine your channel. I Subscribed!! I am 55yr old. and pay my mortgae $520,000 for 15years 1.78% interest, and I pay $100extra pay for principal. is there any other option I can pay off earlier?

[@justwatching7200]

Pay off your mortgage. Stop paying property taxes. Government takes your home. It’s was never yours to begin with.

[@ychongy]

Your life was never yours to begin with thats usa for ya. ID, social security right when you born 😄. Its just the land thats not yours. Just gotta move your paid off house off from their property

[@luciaabbaticchio1500]

Love this info! I thought lump sum was better...in my situation additional monthly payments to principal are better! Thanks!

[@dannayang]

As an investor I will never choose to pay off my mortgage. Mortgage is the best way for average person to borrow money at low interest rate. Even at 5%, compare to last 10 years of SPY ETF, which had an annualized 13.3% return rate. Let along we are in an cycle toward cutting rates lower, thus lower mortgage rate and better SPY return coming up. The $$$ you used to pay off mortgage will earn more in the stock market.

[@kbalabha]

$20K invested in equities over 26 years will yield more than the $62K delta in total interest paid :)

[@gimpinainteasy]

We are on track to pay our house off 2o yrs instead of 20. Which at the moment we have saved like 20k.

[@FalafelUnited]

How much did you buy your house for?

[@carloluna7360]

awesome video and very well crafted spreadsheet!

[@jovylo]

Gabrielle Thank you very much for your sharing ❤ Is really usable ! But how can we talk to the bank if I Want to change pay off Mortge early ? I m the payment ? Because my Mortage just start about 1 Yr ? Is it possible to change mine is 5 yrs fixed turns Pls teach me thank you

[@sookgaskin7361]

Thank you *Strategic techies* so much for you’re advice as my credit score is 771 and wanting to increase it as much as possible as l’m just trying to look out for my future. I’ve subbed you.

[@sookgaskin7361]

My brother, you needed this! I already had ideas of raising my score. But I just found more ways because of this. *Pecuniary backdoors* are such a blessing, keep going frl!

[@jimmywong6964]

Appreciate it if you could share the excel copy.

[@qubit1078]

Great video and food for thought. Can I ask please what was the costs reductions if we paid the 20% lump sum $8000 start of each year 1, then again a 20% start of year 2, year 3 etc wouldn't that drastically affect the interest and total term against Scenario 2 bi weekly?

[@adamhero459]

There are tons of online calculators you can use for this.

[@daliarri5207]

So the strategy is, pay as much as you can as often as you can

[@RoseEveringham]

Shocking is an understatement. I almost fainted!

[@eddieahearn380]

I used accelerated banking to pay off my 30 year mortgage in 6.7 years and didnt have to make any additional payments

[@kimberlyhenninger6346]

Hi Gabrielle, can I use this templet for a car loan or any loan?

[@adamhero459]

It’s either the same of close enough to get you within a few percent. She may be doing a compounding interest calculation here whereas loans are almost always not compounding.

[@AgnesGiselaA2]

Biggest lesson i learnt in 2023 in the stock market is that nobody knows what is going to happen next, so practice some humility and low a strategy with a long term edge.

[@BernhardLeonl5]

Nobody knows anything; You need to create your own process, manage risk, and stick to the plan, through thick or thin, While also continuously learning from mistakes and improving.

[@mariaaloysius5622]

could you please add weekly payments also in this scenario

[@victoriasellitto9395]

I do bi weekly payments, however I never thought I could pay a bit more on the principle. I’m in Canada, can you setup extra payments/higher payments at anytime or do I need to wait for renewal time?

[@PunkRockGardener]

Depends on what your lending contract allows.

[@offerskirksey2255]

Great video. Thanks for posting. 💯💪🏾

[@CapriThermilus]

What if you put down 20% and make $400 additional principal payments (2 out of the 3 options) would that be more beneficial than just the additional principal payments?

[@sookgaskin7361]

Thank you *Strategic techies* so much for you’re advice as my credit score is 771 and wanting to increase it as much as possible as l’m just trying to look out for my future. I’ve subbed you.

[@sookgaskin7361]

My brother, you needed this! I already had ideas of raising my score. But I just found more ways because of this. *Pecuniary backdoors* are such a blessing, keep going frl!

[@FranklinHicks-qs4gs]

Sooooo pay more. Got it. Great advice.

[@NurseReign88]

Are you based in US or Australia?

[@lieuiennguyenthi5207]

I’m confused between Scenario 1 and 2. If I go with Scenario 2, Am I only paying $2400 annually towards the principal vs Scenario 1 - 20k towards principal, meaning Scenario 1 would’ve been a better choice?

[@sookgaskin7361]

My brother, you needed this! I already had ideas of raising my score. But I just found more ways because of this. *Pecuniary backdoors* are such a blessing, keep going frl!

[@sookgaskin7361]

Thank you *Strategic techies* so much for you’re advice as my credit score is 771 and wanting to increase it as much as possible as l’m just trying to look out for my future. I’ve subbed you.

[@yashashreenimje4141]

Is everything you said is true to Canada?

[@eliaslumumba1666]

Hey Miss Gabrielle, if am to take Biweekly payment, does this mean I have to get my monthly payments and Divid it by tow. {paying half of my monthly payment on the 1st of the month and another half on the 15th of the month. Please Guide me thanks 🙏

[@eliaslumumba1666]

Again my monthly payment of $2,436.07 this is part of the principal and interest that’s my monthly payment I guess it’s the one you said about but some has to divid it into to equal payments

[@rayofvictory]

2.5% interest changes the dynamic though, isn’t it? If we are better off earning lot more than 2.5% in the market, it is best to delay the payoff as much as possible.

[@sookgaskin7361]

Thank you *Strategic techies* so much for you’re advice as my credit score is 771 and wanting to increase it as much as possible as l’m just trying to look out for my future. I’ve subbed you.

[@sookgaskin7361]

My brother, you needed this! I already had ideas of raising my score. But I just found more ways because of this. *Pecuniary backdoors* are such a blessing, keep going frl!

[@dazzlinnq]

Great video.

[@phizercost5813]

What do you think of the smith manoeuvre in Canada?

[@GabrielleTalksMoney]

Not a big fan of overly complicated strategies. Unless you know exactly what you are doing and the math shows significant savings, I like to stick to simpler strategies for peace of mind

[@davo9185]

What about a video on how to Leave canada with all your money

[@LeotaNewcomb-og9yc]

There is no video like that, because it's impossible...

[@villagenomadiclifestyle]

Can I have a copy of the Excel sheet, please?

[@mohammedosman88]

Thanks for the video! By setting up the extra payment to go towards principal, does that mean I need to contact the bank and mention that any extra payment I want it to paying off the principal? Can you please shed more light on this? I wish you can make a course for CPA Students, that would be very helpful for me. - Just a thought :)

[@sally0404]

You should definitely contact your bank. My bank allows me to choose “principal” or “regular payment” for any additional payment I make online but if I don’t specify principal it just looks like I’m trying to make my mortgage payment early so I had that happen the first time I did it (they applied the extra payment to the next month’s mortgage payment and I had to call and have it fixed.

[@mohammedosman88]

@@sally0404 thank you so much.

[@sally0404]

@@mohammedosman88you’re very welcome!

[@jimmywong6964]

Would appreciate if you can share or dm a copy of the excel.

[@sharonzembe3400]

Thank you. I'm shocked

[@aliciamarana]

Love it! Thank you 🙏 ❤

[@horaciocanada]

FANTASTIC VIDEO THANKS SO MUCH

[@ArafatBukhari]

I own 3 bedroom house 🏠. And it's Paid off 😊

[@tubetop123]

You mentioned make sure the extra payment is going to principal and not interest. How do I ensure this?

[@adamhero459]

You don’t have to. The base payment you are already making is paying the interest. So anything over the base payment can only go to principal.

[@blueskysunnyday6239]

Write “towards principal only” in the memo if you are writing a check to your mortgage bank. If you are filling out a form to have your bank account automatically pay a monthly payment, there should be a space to indicate the amount you want to be paid towards the principal only.

[@RayRay79]

I could only 2 out of the 3 strategies, unfortunately here in the UK bi-weekly payments are not common.

[@richcasanova]

do you have a scenario where the extra $200 mortgage payment is put towards mutual funds at 7% or stocks at 10% annual gain. I was thinking to accelerate my mortgage as well but caught with this conundrum.

[@discreetphaseresolutiononi299]

I would say I don’t know how I find you on KZbin, but I know better. My husband and I have been in prayer so that we get our credit scores up and our credit record in great shape so that we can purchase our forever home. It was no one but God that led me to *Pecuniary backdoors* . I thank God for this wisdom. Bless you.

[@discreetphaseresolutiononi299]

*I’m glad it works for me and i am sure it will works for you as well*

[@Learninglotsoflanguages]

don't have a house yet, but looking soon and plan to go for a 15 year mortgage instead to really save on interest and then I;ll apply one of these strategies too so hopefully I can be done in more like 10 years cause then my kids will be in college and I'd love to help them

[@sookgaskin7361]

Thank you *Strategic techies* so much for you’re advice as my credit score is 771 and wanting to increase it as much as possible as l’m just trying to look out for my future. I’ve subbed you.

[@sookgaskin7361]

My brother, you needed this! I already had ideas of raising my score. But I just found more ways because of this. *Pecuniary backdoors* are such a blessing, keep going frl!

[@Raquelzenatti1]

Would you mind to share the spreadsheet 😊

[@Shahyee]

So the only way you can pay it off super early, (like two years) is to sell it? How expensive is an early pay off?

[@discreetphaseresolutiononi299]

I would say I don’t know how I find you on KZbin, but I know better. My husband and I have been in prayer so that we get our credit scores up and our credit record in great shape so that we can purchase our forever home. It was no one but God that led me to *Pecuniary backdoors* . I thank God for this wisdom. Bless you.

[@discreetphaseresolutiononi299]

*I’m glad it works for me and i am sure it will works for you as well*

[@Fredflinstone23]

Would you personally payoff a 2.875% mortgage? or would you rather invest on a 4.5% CD?

[@scottfrost317]

Why do you say bi weekly payments are only one 3xtra payment when it’s actually 2?

[@sally0404]

It’s actually only one extra payment because you are essentially paying two extra bi-weekly payments per year (There are only two months each year with 5 weeks instead of four) which equals only one extra monthly payment. Most people who pay monthly are making 12 payments (24 payments if you split that amount into weekly payments) Paying biweekly results in 26 payments so two additional half payments = 1 extra mortgage payment Hope this makes sense 😊

[@ltgemini1599]

Nobody seems to address property tax increases and needing to plan for higher payments.

[@touqirbutter9810]

The best way of getting rid of interest payments is , by with cas no mortgage 😂 may be small property. But also remember if we pay back mortgage double in twenty years valu of money will also be depreciated to l half in twenty years. Not a big loss. On the other hand your home price will be 4 times in 25 years. You just paid down payments may be 20%, rest was bank money.