Paying Off the Mortgage Early: Erin Saved $40,000 of Interest!

[@somethingxblue]

This was an amazing interview!! Congrats to Erin. And I'm very grateful for her encouraging words too, sometimes it's easy to forget a lot of factors impact our money situation and we end up unfairly comparing ourselves to others. It's important to keep things into perspective :)

[@AngelaNortonTyler]

She needs her own show/podcast/channel/whatever. :)

[@NanetteLoves2Budget]

I planned to pay off my mortgage in December. The first week of August I realized I had all the money I needed in various categories. That same week I moved all the money necessary into the mortgage category just to audition the money for the job. Fast forward to this week when the Casting Director made a decision. The money gets the job! I actually had to pause the video and call my bank to do the wire transfer just so I could share my YNAB win with all of you. I’ve joined the club with Erin and Ben. No more mortgage!

[@grammadee]

Congratulations 🎉

[@NanetteLoves2Budget]

@@grammadee thank you so much!

[@lindsaycollins9300]

OK this mid-video update comment is amazing! Congrats to you!!

[@NanetteLoves2Budget]

@lindsaycollins9300 - it was so much fun to do it with my fellow budget nerds!

[@ChiefAnonymoose]

Love this! I appreciate Erin's humility and wisdom. We have a toddler in full-time child care, plus we live in a high-cost area of the country, so it's reassuring to hear how hard work and focus + unique circumstances helped people pay off their mortgage's early. We're with Ernie in prioritizing other areas for now, like savings goals, since our mortgage is low interest, and may tackle our mortgage down the road when we meet those other goals.

[@jacquelinemorris3581]

I love these interviews

[@yolandaingram7378]

I love that she's acknowledging the support she had and that not everyone has that option.

[@FeetintheGrass]

Yay! I love Erin! By far my favourite interview in the past few years for sure ❤

[@darkphoenix6807]

I really appreciate her honesty about how she was able to become a homeowner and pay off her mortgage. I think that a lot of Americans just believe if you work hard enough, you should be able to have a house. And that’s just not the case. Like she said, she had other funds coming in, she had family to help her be able to save for her first house. If you’re somebody who doesn’t have those things, homeownership is not possible. So I really appreciate her humility.

[@YNABofficial]

It is definitely more difficult today. I've often wondered what I would have done if I hadn't had the first house and had to jump into the second one when the market was higher. I wouldn't have been able to afford it for sure. That said, I think I would have tried things like - buying more of a fixer upper, moving to a less than ideal location to start, or saving for a longer time. Everyone's situation is different but I still think home ownership is possible. Hang in there! I hope it gets easier for you. ~ Erin

[@Ilareau2]

Such a fun episode to listen to. Really inspiring and I love that advice of spending an hour with a calculator and just have fun and see what comes of it!

[@judymccarver5833]

Make sure you’re sending your extra money directly to the principal of the loan.

[@YNABofficial]

Good tip! My mortgage company made it really easy to do. ~Erin

[@judymccarver5833]

@@YNABofficial mine does also. On their app. Super easy. Sometimes folks just assume extra payments would go to principal. (It makes sense to assume!!) But it has to be designated so with mortgage companies. They don’t want to give up any such revenue as interest!

[@Lilyvnilly]

This is one of the most inspiring YNAB discussions I've seen - am forwarding to my two adult daughters.

[@fourthesther]

Great interview! Erin, your humility regarding your blessings was beautiful. You showed respect to others that may not share your same situation. Instead of being boastful/prideful, you let the listeners know that some things just came a little easier than others. However, you were smart with your decisions and that is one of the reasons why you were able to be in a good position for future blessings. Taking on more than you should have could have caused the reverse effect. Congrats!

[@bpthomason]

I love Erin. She's so thoughtful and genuine. Congratulations!

[@ering7733]

I really like her! What a great episode!

[@robynpiggott858]

Fantastic episode! Erin's story is very inspiring, and full of great advice. I also pay my mortgage biweekly, and use scheduled transactions to set that up so that my budget warns me when I have a three-payment month coming. Since I have retirement on the horizon like Erin, paying the mortgage down is a high priority for me, and I love how easy YNAB makes it to see where I have extra $$ I can throw at it. I still have a long way to go, but it's great to see that you can get there if you stick with it. As YNAB continues to roll out new features, I'd love it if the YNAB loan accounts/planner could accommodate biweekly payment schedules. Thanks, Budget Nerds, for always making personal finance so approachable and entertaining.

[@kestrel5]

I admire the YNAB team so much, everyone is full of joy. Wonderful as always to hear from Erin, she has such wisdom!

[@hildagarcia4555]

Omg maybe I need to consider $40 extra I always felt I needed to pay so much more each month to make a difference. I am glad I listened to this episode. Also, need to ck out the loan planner. I get stuck in the mindset of hoarding money at the risk of paying more interest. 🙄

[@EfLuis]

What’s funny is last month i decided to start putting $1000 extra on my mortgage so this came at a perfect time

[@stop08it]

She’s so awesome and congrats to her!! You could talk to her for hours and learn soooo much, I love people like this. Thanks for this interview

[@elizabeth1234..]

Hey Ernie! Thanks for the shout-out. My husband has a color coded spreadsheet that he uses now and we are on track to be debt free (minus student loans and car) in a year and a half or less. He is also excited to sit down and figure out how to grow our passive income. I still use and love YNAB and use it daily at minimum. But he also will stop and watch you guys as he walks around the house and calls you the ynab people and asks if I am paying attention 😂

[@Adam17broqn10]

I bought my house in Mississippi for 70k in 2021

[@MrsSauer-vh6kh]

Erin!!! Thanks for pointing me toward an investment calculator during the Debt Bootcamp. It changed our decision making. The "chain of debt" is shorter. I didn't mention the multi-tabbed spreadsheet, but of COURSE there's also been a spreadsheet. 🎉🎉

[@dmrmkw]

This may be too late to the discussion, but I finally had time to listen to this interview and thoroughly enjoyed it. I'm working on paying off my mortgage as quickly as I can, but every time I make my extra payments, I feel sort of "guilty". It seems like everyone, especially financial planners, will almost always say don't pay off the mortgage, you should invest it. But emotionally, psychologically, I absolutely hate debt (and my mortgage is my only debt) and I have always dreamed of owning my own home and not have to pay for a place to live for the rest of my life. Not having a mortgage and not paying rent, it would feel like getting a raise. And it would free up money to use wherever else I want, including investing.

[@dpayne1943]

Imagine how hard it is for most in Canada and the UK.....so many are in or coming into their systems refinance process.

[@ErikBates]

When people realize they have money, but they forgot about it because they’re planning 2 months out, it makes me laugh. Being “YNAB broke” is a great feeling.

[@YNABofficial]

Truth! I felt really dumb, but in a good way. 😀 ~ Erin

[@elizabethgadsby9641]

People are still low balling! I had a friend buy a house 2 months ago who was able to successfully lowball.

[@YNABofficial]

Amazing! I bet it probably has to do with where you are and the market in your area. I know people who live in places where everything sells within 24 hours of being listed!

[@moodrow1497]

This was such an AWESOME video. There were some great tips in here and i appreciate the reassurance that paying off the mortgage early doesn'thave to be for everyone. Getting out of debt is stressful enough without adding another $200k to the goal :)

[@YNABofficial]

There's a reason I didn't try to do it until now! I had other priorities and it's ok if you do too. ~ Erin

[@hildagarcia4555]

Where do I find the loan planner that was mentioned in this series? I didn't see it on the desktop version of the app. I am sure I am looking in the wrong place. This episode really has me thinking. Budget Nerds: I am behind in retirement savings and my mortgage loan is at a low interest rate (

[@elizabethgadsby9641]

In the desktop app, the loan planner is built into the mortgage account.

[@dawnkoplitz1825]

A financial planner can help you figure out what’s most advantageous for you.

[@ivicanuck]

If you know you will NOT stay in the same house after retirement, is it still worth to pay extra on the mortgage? I’m wondering now if I should be investing the extra payment instead of paying the mortgage down… 🤔

[@Meganical99]

Great guest!

[@judriki5516]

Thank you so much for this episode! It led me to add another category to my budget to set aside $/month (making sure the money will be sent to my mortgage). It never crossed my mind before this episode, though I knew Ben paid his in a out-of-mind short period! 🙌

[@anniemilakovic7683]

Sounds like you should make sure you have the full balance set aside when you pay off the mortgage to account for the escrow expenses, instead of just going with the payoff amount.

[@irisymontalvo]

Excellent video. I’m throwing $400 extra towards the mortgage.

[@Hannah-ji2if]

With the loan planner, what do you say is your monthly amount? Is that the principal and interest only, or do you include the escrow amount?

[@YNABofficial]

It's the entire amount that gets sent to the bank. If part of it is for escrow, you can tell the mortgage account how much that amount is. ~Ernie

[@Hannah-ji2if]

@YNABofficial Thank you very much Ernie

[@steph_a_noodle]

I love the Erin eps; she has great perspective! Thanks for sharing, Erin. 🦋🌻

[@ourdreamscollide]

I'm at the very, very beginning of my first mortgage journey so I appreciated this conversation about the end! I just bought my first house after a whirlwind 24 hours of it going on the market, putting an offer in, and having it accepted four hours later. I'm excited to play around in the loan planner tool!!

[@YNABofficial]

Congrats on your new house! I remember how harrowing that time is from when you put in the offer until it's accepted. I was so nervous I didn't sleep! It's good to play around for sure, but it's also just great where you are right now. Feel good about what you've accomplished! ~Erin

[@f.d.5952]

Erin has a beautiful voice.

[@amberhuseth7968]

SKOL VIKINGS! Love the MN Vikings be represented in t shirt form

[@YNABofficial]

Let's go! It's impossible to express just how excited I am for another season! ~Ernie

[@daniajay838]

If I plan to sell in less than ten years, is it worthwhile for me to pay off my place?

[@YNABofficial]

You'll have more equity when you sell, which can roll into another home purchase, so I think so! But it's very much a personal decision. ~BenB

[@bjbarlowe]

First!