Easy Ways to Pay Off Your Mortgage Early

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Show Description
Today, I’ll share four simple ways to pay off your mortgage early.
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● 🎥 Watch my Hidden Ways Homeownership Can Lose You Money video. ⮕ • Hidden Ways Homeowners...
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[@Riggsnic_co]

Asking a real estate agent whether you should buy a home right now is like to asking an alcoholic whether they think you should have a drink lol. Homes in my neighborhood that cost around $450k in sales in 2019 are now going for $800 to $950k. Every seller in my neighborhood is currently making a $350k profit. Simply unreal. In all honesty, deflation is what we require. The only other option is for many people to go bankrupt, which would also be bad for the economy. That is the only way to return to normal.

[@Jamessmith-12]

That is so amazing, I’m trying to get onto the investing ladder at 40. I wish at 55 I will be testifying to similar success..

[@Syndiewndell]

Exactly why i enjoy market decisions being guided by a pro , seeing that their entire skillset is built around going long and short at the same time both employing risk management and market experience , been using a portfolio-coach for over 2years+ and I've netted over $3million in that time frame.

[@JacquelinePerrira]

Impressive can you share more info?

[@Syndiewndell]

Credits to 'Carol Vivian Constable' she has a web presence, so you can simply

[@JacquelinePerrira]

She appears to be well-educated and well-read. I ran a Google search for her name and came across her website; thank you for sharing.

[@billtsompanidis4691]

I paid my 30 year $455K mortgage in 7 years in December 2023! Scrimped saved and made significant sacrifices for those years. No new cars little entertainment rarely went to restaurants. All bonuses, tax returns, gifts were turned over to the bank. Wife wanted to hang me. Got through it and we now own our 950k house. No mortgage, no auto loans and no card debt because we didn’t spend money. We are financially free to do whatever the heck we want now. Btw we kept up with our 401k investments the whole time. It can be done! My rich friends still have many payments and are envious. Same people who poked fun because I drove a 10 year old car. lol.

[@todd2456]

That's incredible - nice work!!

[@MariaGarcia-gj5ie]

That’s awesome and so inspiring 😊

[@Cardinal15]

We’ve done the same and it feels good having no debt.

[@HealthyWealthyMogul]

Hi My name is Mira and I am so grateful to see your message. I am doing everything the same version that you did to pay off our mortgage too. Making videos weekly on my channel is pursing my passion and hoping to inspiring other people paying off debts and mortgage. Still working at it. I was an immigrant from Burma and I paid off all my debts including student loans. I am enjoying my life with my family spending quality time, stretching dollars and helping others however I can. Yep, I don't party big but I save to cut the debt circle big time.

[@billtsompanidis4691]

Nice work Mira. Keep it going. I promise you the time is coming when you’ll be done and you will breathe the biggest sigh of relief and feel so so so accomplished with your goal. Matter of fact you’ll be so used to saving you won’t know what to do with the extra money. So you’ll just keep it in the bank for a while. Reward yourself and Make sure you set up another goal after that. Happy for you!! Btw- I’m an off the boat immigrant from Greece. 😊 best of luck!!

[@MillTickets]

It's risky to force yourself into a 15 year mortgage. Keep your 30 year and just make additional principal payments

[@sarahlockridge7879]

Remember extra payment to principal.... Some people don't understand that. When you make your extra payment, apply it to the principal only!

[@nellie...]

Good to know thanks!

[@tz1592]

We paid off our mortgage in January. I had a 15 year at 2.25% and so many people told me not to do it since the money was so cheap. It was a tough decision, but now that it's done, I don't have to throw additional payments to the principal every month. Now, the money we make is ours and let me tell you, we have been splurging the last couple months for sure. No regrets here. Very thankful for sure!

[@billtsompanidis4691]

Nice job! Folks told me the same thing. What they don’t understand is the piece of mind aspect of paying it early. It’s an insulator in case you get laid off, etc. Enjoy your success!

[@tz1592]

Couldn't agree more! Congrats to you too!! It's a big sacrifice to take the extra money you have every month and keep pounding the mortgage. I'm glad that's done for you too!! @@billtsompanidis4691

[@mguti090]

Those people were right. What you did makes zero sense.

[@tz1592]

Nope, you're wrong regarding my situation. My house is worth $1.3M and is now paid off, my cars and motorcycles are paid off, my kids college funds are in the bank, I have millions in the stock market, I'd say I made the right choice for my family. @@mguti090

[@billtsompanidis4691]

@@mguti090I’m not so sure about that. The stress factor has been alleviated and I don’t have to worry about my job downsizing and giving me ( a highly compensated employee) the boot. It’s life insurance for my family should something happen to me etc. my retirement at 55 is complete and just growing it at this point. I’m happier than ever and can get a job at Home Depot stocking shelves without feeling any pain. Yeah I could have made another 200k but I already figured and delivered on that piece before the payoff. Can’t put a price tag on freedom 😊

[@mithicash1444]

The only thing i would say is that you don't need a 15yr mortgage to pay it off in 15 years. In fact, i would recommend people take a 30yr loan BUT pay it at a 15yr pace. This is a long period of time and you never know when hard times will come. Today, you can pay off mortgages penalty free so if you fo with 30yr loans it gives you flexibility. If you or your partner lose a job, you have the option to pay significantly lower payment. If not, you keep paying it off at a 15yr rate and get it done early.

[@ShutterSpeedGaming]

This is the way.

[@Laura-ed5kf]

What I did. I COULD have made the 15-year payments but wasn’t feeling safe at work. Doesn’t mean I couldn’t (& haven’t) paid extra to Principle from that first payment!

[@Lionheart_He-Man]

Agreed and for those who may be considering refinancing from a 30 year to a 15 year mortgage you also have to factor in the multi thousand dollar fees associated with a refinance closing. Best to pay off that mortgage early by making additional payments as you suggested. 💪

[@TheRealTommyBear33]

but how when i do the math it seems that if i pay 15 year loan its paid in 15 years a 30 year if i pay that same extra few hundred a month that the 15 year loan was the math says you pay it off not in 15 years? I guess I am mathing wrong idk but never seems to be the same.

[@Matthew-wz8ng]

Round your payment up the next hundred can not a few years off the loan. I did that for 14 years and it knocked 5 years off.

[@lauren4078]

Great idea! I'm going to do this!

[@cjusino85]

So if the mortgage is 1245 you are saying to pay 1300 a month instead?

[@Matthew-wz8ng]

yes, as every extra dollar will reduce as the extra $55 over a couple months will equal one month of the principal payment and at the same time reduce the amount of interest being charged.

[@cjusino85]

@@Matthew-wz8ng thank you!

[@sarahmackenzie1200]

We pay $450 extra on top of our monthly repayment amount

[@Cardinal15]

We’re paying off our home this year after 15 yrs and at 40 yrs old. No other debt, it feels good.

[@HealthyWealthyMogul]

Congratulations. I am working towards paying off our mortgage too and will continue save.

[@Cardinal15]

@@HealthyWealthyMogulLet’s do this!!!💪

[@JMann2307]

Huge blessing!! Many congrats!!!

[@billwilliams5889]

One trick is to print off the 30-year amortization schedule showing each month’s principle and interest. Then whenever possible, pay extra money into the loan. After doing this a few times, then re-print the amortization schedule to see how much interest you have saved. That will encourage you keep sending in even more extra money.

[@barnabusdoyle4930]

Why reprint the amortization schedule, just use a pen and track where your actually are in your loan and how far head your principal balance is than where it should be if you made minimum payments

[@billwilliams5889]

@@barnabusdoyle4930 Reprinting it gives you “hard copy proof” of the effect of making extra payments.

[@pnwflipper2089]

Yea! Seeing the total amount change so drastically is so exciting! (You don’t have to print, though, you can just pull it up on the computer and save paper 😊

[@kenwilliams3279]

The PMT function in Excel easily calculates mortgage amortization in a spreadsheet. Very powerful tool.

[@donnanorris4733]

I use an amortization spreadsheet I found free online.

[@ScottJ_Moses]

Hear, hear. I bought in 2022. I’ve lived here around 18 months, but I’m” 6.5yrs” on my amortization chart.

[@kortyEdna825]

Mortgage rates are currently at an all time high since 2000(23 years) and based on statistics on inflation, we might see that number skyrocket further, a 30-year fixed rate was only 5% this time last year, so do I just keep waiting for a housing crash before buying or redirect my focus to the equity market.

[@carssimplified2195]

The stock market is no different, to maintain profit, you need to have some in-depth knowledge on the market

[@Joebiladen159.]

I wholeheartedly concur; I'm 60 years old, just retired, and have about $1,250,000 in non-retirement assets. Compared to the whole value of my portfolio during the last three years, I have no debt and a very little amount of money in retirement accounts. To be completely honest, the information provided by invt-advisors can only be ignored but not neglected. Simply undertake research to choose a trustworthy one.

[@Pamela.jess.245]

Impressive can you share more info?

[@Joebiladen159.]

Certainly, there are a handful of experts in the field. I've experimented with a few over the past years, but I've stuck with ‘’AILEEN GERTRUDE TIPPY” for about five years now, and her performance has been consistently impressive.She’s quite known in her field, look-her up.

[@Pamela.jess.245]

Thank you for this tip. It was easy to find your coach. Did my due diligence on her before scheduling a phone call with her. She seems proficient considering her resume.

[@donnadudley18]

The future belongs to those who believe in the beauty of their dreams. Success is a state of mind. I think I'm blessed because if not I wouldn't have met someone who is as spectacular as Expert Mrs Lucy Mary Liam.

[@kristenszabo138]

It's a miracle and I would testify, $110,000 every 4 weeks! I now have a big mansion and can now afford anything and also support God's work and the church.

[@johncuevas4415]

I have made more than 90K USD God bless Lucy Mary Liam God bless United Kingdom 🇬🇧

[@bensonarmstrong7287]

After I raised up to $325k trading with her I bought a new house, bought a new car for my wife here in the states 🇺🇸🇺🇸 also paid for my son's surgery (Oscar). Glory to God.shalom..

[@samstrong912]

I just withdrew my Profits a week ago, To be honest it was an amazing feeling when the profits hits my wallet I wish I could reinvest but, too much bills

[@KaterinaWayne]

Thank you Lucy Mary Liam $45,000 weekly Profit regardless of how bad it gets on the economy.

[@todd2456]

We had a 5 year plan to pay the rest of our mortgage off starting Jan 2021. We ended up paying it off in 2.5 years. Once you start seeing the balance come down fast, it's addicting. Once, I even put my $100 Christmas money from my parents on it when the balance was around 400K. We tried putting at least 7 payments per month on it, regardless of the size.

[@jaywalk6628]

100%

[@lovetoplaywithyou3530]

How do you do that?

[@todd2456]

@@lovetoplaywithyou3530 We just made principal payments several times per month. And made the bigger chunks at year end with bonus money and I took on random side hustle work. We had $100K in a brokerage account, but we paid off $903K in 30 months.

[@billtsompanidis4691]

Awesome job. It feels good doesn’t it!!!

[@pnwflipper2089]

My husband and I did the same thing. One of use would say “so you want to go to a movie? Or stay home and put that $20 on the principal?” Then we would put it into a mortgage calculator and see how much we would save over the lifetime of our mortgage and we pretty much always chose to stay home 😂.

[@rodrigofernandez9055]

The key is to don't buy an expensive house. A 3 bedroom 2 bathrooms is good enough. Nothing over $300k otherwise you will pay for longer.

[@tressalewis7004]

Thank you for all the great information, Rachel! Because of listening to all the great videos coming out on Ramsey, I have been encouraged/my husband and I have been encouraged to pay off our mortgage early. We have about a week and a half to finish.🎉🎉🎉🎉🎉🎉🎉🎉

[@adrabruzzese7610]

Congratulations!

[@recentlives]

That is Amazing!!

[@Lionheart_He-Man]

Any update, is the mortgage done? 🤩

[@cristinapurdea8505]

Another 31 months left if we are healthy and keep up with the plan. Can’t wait to be debt free and enjoy more with kids and hubby.

[@howellomaha]

I would not refinance a loan from 30 to 15 year if you are good about paying extra towards the loan. People always make it sound like it is free to refinance, but nothing is free and those costs are $$. Sure the bank will just 'wrap those closing costs into the loan' but that will cost even more.

[@AlexRodriguez-ht1zl]

Thank you, finally someone gets it. Take that fee you’d be charged and just pay off the principal on your current loan , and keep going till it’s gone

[@sarahlockridge7879]

What about if you have 7.75 interest?

[@jgjg3848]

Yep, you're out thousands of dollars in "fees" at closing.

[@kenwilliams3279]

Agree. I have a 30yr loan. Currently on track for mortgage free after 9yrs.

[@Jkburd]

I think it also gets overlooked that refi resets the clock too. So if your 4 years in and get a 15 yr refi your still mortgaged for 19 years.

[@mattbleiler7294]

My payment is so low (under 10% of take home pay) and at 3.3%. Right now CD’s pay better. Not including taxes, my payment is $850. It just doesn’t make sense right now to pay off early. It will naturally be gone in 7 years.

[@justanotherfan18]

Working on this...my balance is 203k and plan to add at least 100 to 200 each month, and add more when I can

[@woodyentertainment3798]

I pay my principle payments WEEKLY just for the peace of mind that I did the payment create the discipline and to stay on track I treat my extra principle money like a another bill I see the light to the finish line

[@Laura-ed5kf]

Owned my condo 5 years, re-fi’d in 2021 to a 30-year, made extra payments from Day 1. Saw in Oct. interest was 50% of my remaining balance if I stick to the 30-year schedule! Nope! Double my mtg. each month, straight to Principle. Should be done in 7-years.

[@user-yk7ri4wx2w]

Thank you for this video! This is helpful information ❤ I absolutely love your company, the values and the character of your family and the employees at Ramsey Solutions. Such a blessing to others.

[@jgjg3848]

If you're already in a low rate mortgage, don't refinance. Just look up a 15 year mortgage online and see what the monthly payment would be and pay that extra amount toward principal on your current mortgage. Just pretend you're in a 15 year by paying the amount a 15 year would be. The years will just fall off your 30 year fixed.

[@rae6085]

Thank you so much for your motivational videos. May I ask- does it matter what day of the month you make an interest only payment?

[@TheJackCain-84]

Interest rate is currently at 4.75%(8th rate hike since March last year) Inflation at 7% and mortgage rates is at over 7.5% but yet minimum wage remains the same and my retirement portfolio has suffered tremendously these past years, so my question is how do senior citizens retire and live off such unstable economy. The long term game is obviously not for me at this point.

[@LindaHaire]

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.

[@Syndiewndell]

Exactly why i enjoy market decisions being guided by a pro , seeing that their entire skillset is built around going long and short at the same time both employing risk management and market experience , been using a portfolio-coach for over 2years+ and I've netted over $3million in that time frame.

[@kevinmarten]

Impressive can you share more info?

[@Syndiewndell]

Carol Vivian Constable is the licensed fiduciary I use. Just research the name. You’d find necessary details to work with a correspondence to set up an appointment..

[@kevinmarten]

She appears to be well-educated and well-read. I ran a Google search for her name and came across her website; thank you for sharing.

[@angelyn55]

Timely video. Yes home ownership is expensive!! We buolt our house in 2022 and it was double what we predicted would cost us. A big factor was the cost of labor and material had sky rocketed. We anticipated on having a loan but not close to what our loan came out to be. We sold our old home put money into building the new one but still had 249k. Signed up for 30 yrs but paying it as if its a 15yr. Thankfully our rate was locked at a decent number 3.85% before it shot up everywhere to 6-7%. We are putting extra $650 monthly. Would like to add more once we built our emergency fund back up.

[@angelyn55]

Sorry l wasn't clear. We still ended up with 249k loan.

[@bradleygraves5915]

I finally cleaned up my act and am maxing out retirement IRA by this June for both my wife and I. After that, 4x principle payments each month through the end of the year. Can't wait to see the balance drop.

[@PVLocalFirst]

I make 13 principle payments a year and pay one quarter of my mortgage weekly. I have solar panels, so I have had no electric bills for 23 months. Also, the federal tax credit for solar is 30%.

[@rudyseidl7645]

I love these tips. I have a question please: Instead of making an extra payment per quarter, can I just pay extra per month? In other words, if my payment is $1200/month, can I pay an extra $400 per month, instead of making an extra payment at the end of a quarter? Is there a difference?

[@cynthiamcd6780]

Yes that is even better! We have been doing extra every single month and we are paying off in 15 instead of 30 yrs

[@rjmoose8918]

First comment! Love your videos! Always providing great advice!

[@anniesshenanigans3815]

I will have my house paid off in less than 4 months. I have a goal for 4 months because my insurance renewal comes in September. Currently it's 7k and that is more than double what it was a year ago. FEMA rezoned my home to a flood zone, so the Mortgage company required it. So I have decided to pay it off completely and get my insurance on my own. They want me to pay off the total before they will refund my escrow.. totally ridiculous!!! I don't care if I have only a few dollars in the bank. I am paying it off!!!

[@nadinefrandsen6087]

🙋🏼‍♀️Hi Rachel. I have a question about the 25%. Is this percentage on net income, for the mortgage only, or adding in utilities and any other monthly charges that have to do with the home? Your video comes at a time when I’ve been crunching numbers. My focus has been on paying down(and off) other debt and we’re almost there. But now I’m looking at amortization calculators with the goal of paying off by or before retirement. And you are so right about having a savings for maintenance and unexpected home repair. In the past we’ve had to finance a furnace HVAC and water heater replacement. Now our roof, as it is 20yrs old.

[@jackiechoate6163]

It's net income(after taxes) but not after other deductions that might be taken out of your check. The 25% is the mortgage, home owners insurance, property taxes, and PMI if you didn't put 20% down on the house.

[@msmonet]

I dont plan to pay off my mortgage early. My interest rate is only 2.75 percent. My money makes more staying in savings these days. Im retired, so my money has to work hard.

[@jeffdarleneriel5628]

Papa Dave says if you invest in stocks you will get a 12% return year over year. Why pay off your mortgage? Fun fact: $330,000 in stocks would net you $11,530,000 @ Dave’s 12%. A $330,000 30/yr mortgage will cost you $327,490 in interest @ 5.27%. The reason why Dave advocates to pay off your house is because Dave really doesn’t believe that you will make 12% in the stock market every year. But he wants to sell you hope (and books, and investor pros who pays Dave handsomely to be on his silly “vested” list).

[@thedopplereffect00]

Exactly. We both know who's paying 5.27% essentially risk free :)

[@InsatiableMonkey]

Years ago I considered working for him so I read his book and when I saw the part that used 15% annually for decades in order to demonstrate how you could become wealthy via compound interest I lost interest in working for him because only an idiot or a liar would lead people to believe that was realistic and I didn't want to work for either. The no credit cards, the buy houses with cash, the pay mortgages off early, the 12-15% annual returns... If I listened to that baloney my portfolio would be a lot smaller.

[@bigchief113]

Great advice.

[@TheVanegasReview]

Love the video

[@patrickboyd3364]

I'm down to my last $21,400 on my home, if I follow my plan I'll be paid off in 2029 that will be around 13 years early, original pay off date was 2043

[@Kurtdog63]

It is humbling to think that at least part of your childhood was spent with the broke Dave Ramsey. Your family has come so far and helped so many others with the journey. Thank you!

[@sharoncappelletti775]

You didn’t mention paying twice a month instead of once a month. We pay half of the mortgage payment on the 5th and the other half in the 15th. This builds in the extra yearly payment.

[@mrschulltzy]

If you’re paying half the mortgage payment 2x a month, you’re not building in an extra payment. What you’re referring to if you pay every 2 weeks. That means you’ll pay 26 half’s (13 wholes) in the year instead of 24.

[@c2s2942]

@@mrschulltzybut some months have an extra week, so bi-weekly payments actually creates a 13th monthly payment.

[@mrschulltzy]

@@c2s2942 Yes. That's what I just said. The original commenter said they pay half of the mortgage payment on the 5th and the other half on the 15th. That means that they still only make 12 whole mortgage payments per year because they're not paying bi-weekly. They're just paying half the payment 2x per month.

[@juliemanning5970]

You have to check with your loan provider. Some will hold your payment until it is made in full. If that's the case, this advice won't work

[@sharoncappelletti775]

Yes sorry! Every two weeks is how we do it. Those dates are paycheck dates.

[@kathryncashner3294]

When I bought my first home, I used a simple trick of setting up an automatic payment where I had rounded the payment amount up to the nearest $100, with the extra, of course, going to the principal. You'll never miss that little amount, but over time it does make a difference. Then I started making significant additional payments when I could, ultimately resulting in paying it off in about 6 years. The payment difference between a 30 year and a 15 year mortgage is often very little--plan to pay at least that difference each month. Get a raise? put that on the mortgage. It all adds up very quickly.

[@murugesusri403]

Live here in Canada and try whatever you said ,let me see if you can pay off even a credit card!

[@ruggedreview6064]

Hi! Why isnt the EveryDollar budgeting app available in Canada?! Regards, Android user

[@trenton7]

Thanks for explaining the obvious

[@mariacorretge6615]

I'm trying to reduce from 5 to 3 years or 2.5...not sure if it will be possible, but that would mean my mortgage, for which I put 0% down (I didn't know Dave then) will be over in 22.5 years.

[@monami1359]

Couldn’t you make your 30-yr mortgage down to a 15-yr mortgage with extra payments, particularly if you have a 2.25% interest rate?

[@aaront936]

I'd you have a 2.25% mortgage I would caution you not to be in a hurry to pay it off. You can make far better returns in a low cost s&p 500 index fund.

[@brett4932]

You’re always better off with a 30 year and paying additional principal as if it’s a 15 year. If you run into any issues like an emergency or job loss you can always just pay the 30 yr payment until you find a new job. But what if you’re stuck at the 15 year payment and not paying the full amount puts you on a path to foreclosure? Get a 30 year and treat it like a 15. The math maths almost identically. The Ramsey methods are very flawed.

[@ecclairmayo4153]

Exactly it shouldn't matter that someone gets a 30 year mortgage if the goal is to pay it off early regardless

[@krique_o.0]

can the every dollar app handle more than one bank account? I have two checking accounts and two credit cards (those are paid off every month).

[@Dora380]

I have a 3% mortgage interest rate and suddenly became liquid from the sale of a business and i am confused if i should pay off my mortgage or invest in the stock market.

[@andresprieto3323]

If I were you, I would gladly pay off my mortgage first. Without debt and mortgage payments, you can invest as much as you want. I wouldn't invest in single stocks though. You'll be much better off with investing in a 401K or IRA.

[@kenwilliams3279]

If you had a paid off house, would you borrow money to invest somewhere else. NO! pay off your mortgage :)

[@rtownz251251]

Hi Rachel, I bought my first home 4 years ago. I have a 20 year fixed rate mortgage at 1.37% (I know it’s crazy low). I currently have 169.000€ left on the mortgage. My current mortgage payment is €640.40 (€192.84 in interest, €447.56 in principal). I know debt is debt and you would want it to be paid off quickly, however I would be getting more interest on my money in the bank than it would be to pay off the mortgage. Would you say it is wise for me to start paying off the mortgage or just do that after the 20 year fixed is over (currently still 16 years left)?

[@jeffdesanty5753]

While agreeing in principle, strategy and rationale to pay off your mortgage early, the cover image for this video showing a total payment of $0 is misleading. The Escrow line item that would have been for funds to cover taxes and homeowner insurance is still your responsibility. It doesn't go away after paying off your mortgage. Only the principal and interest goes to $0.

[@moe-df9qx]

i bought my house in 2017 4.1255% i was only payin round up to the nearest hundred started out about 59.and some change my extra on principle eventually got to 33.and some change so in middle if 2023 i bumbed it anither 50 bucks and starting in jan2024 im bumpun 50 each time putss me at 240 extra almost but u dint really see it helping uts so far😝

[@Lolatyou332]

@4:20 why the heck would you refinance a loan if your just trying to pay it off earlier? You're going to have to pay a couple hundred at minimum just to get it refinanced, it also forces you into paying it off rather than just paying down extra principal each month.. I barely see any reason to refinance an existing mortgage if you just plan on paying it off earlier anyway. If the interest rate isn't significantly lower it's pointless, also if you plan on paying it off faster than 15 years it's also pointless. Additionally, if the mortgage is literally going to be paid off in 20 years because you've owned it for 10 already it makes even less sense. Who do they expect the people who have no debt, tons of investments, that have a freshly bought 30 year mortgage house? It wouldn't surprise me if the average person who is looking at paying off their mortgage is already 10-15 years into owning their home.

[@billfunk3168]

Enjoy your videos Rachel ! My prepayment plan one extra payment per year. If you have a $1200 principal and interest payment put $100 extra in every month. I believe that pays a 30 year mortgage off in 18 years. If you do that on a 15 year mortgage it really pays down principal. My first house in 1978 9/34 rate second house 1985 a 12.50 rate.

[@jim03160]

@rachelcruze isn't some of what you said outdated in this real estate market of The Last 5 Years? Reports of shown that Americans are spending 50% of their income on home ownership because of the inflated housing prices, low inventory, and inflated rates. So a 25% of income housing expense doesn't sound realistic.

[@jameskelson1891]

I find a whole lot of comfort in my mortgage. I sold my home several years ago and invested the money in mutual funds. A couple of years later I bought another home. Instead of buying it out right with the money from my first home, I took out a 30 yr mortgage at 3%. The $350K I would have put in the house continues to generate about 8%. I am now about $200K ahead due to the mortgage. Please stop telling people to act on comfort; i.e., emotion and instead use rational thinking in managing their money.

[@mguti090]

100%. The math is so clear and yet these people can't think rationally.

[@kathrynp7595]

We have a 15 yr mortgage at 2.2% interest rate with 10 yrs to go. With such a low interest rate does it make sense to pay it off early rather than invest that extra payment?

[@mrschulltzy]

What if you paid off the mortgage and stopped losing 2.2% on that every year and then invested what you were paying toward your mortgage. You’ll grow wealth even faster. A good way to look at it is if you were in a race and everyone starts with a weight around their ankle. You can either run the race with the ankle weight and hope you have the stamina to keep going, or you can take a little bit of time at the beginning and remove the weight and then sprint through the race without the extra burden.

[@user-ey4hd3cp9q]

People here are going to say no but your rate is so low that you should drag it out

[@TheGreatAgnostic]

Something we are doing is putting our money in a high interest savings account while our mortgage rate is lower than this guaranteed return, and then we'll pay a lump sum down the line. Gives the flexibility to use the money if we truly need to.

[@chaselesser3191]

@@mrschulltzyI ran some numbers based it off 300k at 10 yrs paying an extra $2k/month. Paying the mortgage you save $19k But Investing at: 8% return gives about $33.5k 10% return gives $43.5k At 4% return, it’s about a break even. So she could just put it into a HYSA incase of a emergency, and in 5yrs if nothing goes bad, just pay it off the mortgage? Nothing lost but peace of mind won. Personally, I would max out 401k and Roth. Make sure you have a solid 6 month emergency fund and then either your children’s 529, or towards the mortgage.

[@SpicyKimchi-]

I’m in the similar situation - 2.75% I’m 6 years in a 15 and have made extras leaving about another 6 years left till payoff. I’m pausing extras right now and shifting my focus towards my retirement/investment so I can align my Coast FIRE years with my mortgage payoff years. The risk is zero bc I have enough to payoff now, but I’d rather take advantage of the compounding years now than wait 6 years.

[@MariaH11113]

How did you do that? I pay principle and interest on the 15th of current month for the 1st. I also add another $200 a month towards principle. Just did the math. I refinanced on 8/21 at $318k and now owe $280k. My payment is $1740 a month. If I times that by 13.5 years I’m payed off. How can I pay it sooner? In 7 yrs as you?🙏💪

[@marcodm]

7k canadian left after 17yrs. Need that extra money

[@kevinking596]

The pic i clicked on said escrow was 0. Does that mean i shouldn't buy insurance and pay my taxes! I'm kidding, cept that was misleading to me!!!!

[@thedopplereffect00]

Yep, by the time you pay off your house the insurance and taxes will be more than the mortgage payment

[@shifteeninjee9641]

Personally I dont mind a 30 year mortgage - yes its higher interest but I like the flexability short term having the extra cash now.

[@aaront936]

One simple reason not to. I have a 2.5% 30 year fixed mortgage 😂

[@miryamishot]

Many people have a higher interest and pay off their house loan under 30 years, I guess you like losing money I don't know what to say about being happy to have a mortgage for 30 years.

[@barnabusdoyle4930]

Why would you refinance from a 30 year mortgage to a 15 year mortgage? Closing costs on that would be $20k or more. There is no benefit to that. Just pay extra towards the mortgage

[@tcpipman4638]

You can pay like you have a 15 year mortgage but have the leverage to not do that if you have an emergency.

[@jeretso]

You spelled doller wrong @6:50

[@hatteraslabuf]

“I’ll show you the math” . . . did you forget? I’m waiting, Rachel

[@bruce237]

6:53 typo!

[@subrinsgooden9369]

I'm Married 51 year old if I payoff my house early and it's my only Asset what can we do at Tax time not to payback so much if we don't have anything to claim

[@rickchaidez5711]

Find the organization where you could donate the amount of money you would pay on interest each year, make sure you get a receipt and it’s legit

[@lornamacdougall9825]

Do you still invest 15% in mutual funds during retirement?

[@ginganinja7958]

So once you pay off all your debt, and this includes your mortgage, you can put in as much as you want. The 15% is only recommended while you pay for your mortgage.

[@lornamacdougall9825]

@@ginganinja7958 I live off my pension and social security. I turn my RMD into a QCD. Stopped investing when I retired. Should I restart investing?

[@thedopplereffect00]

How do you make money if you are retired?

[@lornamacdougall9825]

I live off my social security and my pension

[@noamisrael6264]

Wow, what a revelation. Pay more per month in order to pay your mortgage loan faster. How come I did not think about it?

[@yoselinlopez2843]

What is better, make extra pays every two weeks or do a big one once a year??

[@2014calvin]

All of this advice was great except the 15yr refinance. That's a horrible idea. One big emergency and your credit and savings account are done. Never give away your leverage and options.

[@joans5619]

Refinancing after having a mortgage for a while is a horrible idea. The reason is because you start ALL over again day one paying interest again. Just like in the beginning because it is the beginning. Don’t ever refinance. Figure out another way. Just don’t do it. Even if the rate is lower. Just pay more on your mortgage each month. I know because we refinanced a couple of times until I finally decided never again. Now we will have the house paid off about 7 years earlier because we are so king it to that mortgage every month.

[@kimberlyturner820]

Advice starts at 3:27

[@Kevin-fn1rn]

Why rush to pay down mortgage? If house prices continue to rise + inflation, you are better off repaying it the longest time the bank allows. The extra money per month can be invested and will give you better ROI than paying down home. Plus, you never own it outright, you always owe property tax/insurance

[@andresprieto3323]

OR, if you invest 15% in retirement while you're paying down your mortgage like the Ramsey plan suggests, pay it off the mortgage faster, then turnaround and invest what your monthly mortgage used to be since you freed that up money, you'll have a much greater return in your retirement versus just chasing the spread.

[@thedopplereffect00]

​@@andresprieto3323mathematically wrong

[@andresprieto3323]

@@thedopplereffect00 not if you pay off your house quick and proceed to invest the additional 20-25% of your income on top of your initial 15%.

[@ADhammer]

On track to pay off in 8 years, 10 months total.

[@jaywalk6628]

Exactly you become a bit obsessed with the goal. 😂

[@Twopeetfeet]

$1.2m home with $800k mortgage, minimum repayments were $4k/mth. We chose to pay $8k per month for the last 7yrs and are on track to pay off in 3 more years. I hope we make it, times are tough and job security is starting to look shaky 😢

[@omotolaobadina1894]

Stay on! You’ve done amazing and your story is inspiring!! You’ll pull through!

[@TacoSyndicate]

You never own your home outright. You still have to keep paying tax on it every year.

[@dannyhilton857153]

Having a dad worth about $600m helps I imagine.

[@EricMoore790]

I live in an apartment to pay off my mortgage.

[@Gunitro]

You really think rates will ever be below 3% again?

[@frankrobinson5453]

Let's face it, there's nothing easy about paying off early. You must have extra funds available and discipline to do it. It's a great strategy, but not easy.

[@vijujoshi]

if your rate is lower than 5% NEVER pay mortgage , who will give you money at that rate

[@edgonzalez186]

Left when the 15yr mortgage.

[@eddiez2011]

You shouldn't yell at anyone

[@theChef1337]

Is it me or does Rachel have a great tan rn? 🥵🔥

[@desmondhatchett7846]

So this only applies to 5-10% of the population?

[@user-yb5bg8im5g]

''easy way to pay off your mortgage'' do not have one. do WHAT EVER IT TAKES TO PAY CASH...

[@juanrijo571]

Second 😂🎉

[@FunInTheSun808]

You and George are doing the same content….

[@user-nx6tr9je6v]

#1 have your daddy pay it off for you

[@CameronFussner]

Mortgage rates are currently at an all time high since 2000(23 years) and based on statistics on inflation, we might see that number skyrocket further, a 30-year fixed rate was only 5% this time last year, so do I just keep waiting for a housing crash before buying or redirect my focus to the equity market.

[@leojack9090]

True, I mostly just buy and hold stocks, but my portfolio has been mostly in the red for quite awhile now. Unfortunately to be able to make good gains, you’ll need to be consistent and restructure your portfolio frequently.

[@LucasBenjamin-hv7sk]

@@parrish8386 Please pardon me, who guides you on the process of it all?

[@fadhshf]

Please pardon me, who guides you on the process of it all?

[@LucasBenjamin-hv7sk]

Thanks, I just googled her and I'm really impressed with her credentials. I reached out to her since I need all the assistance I can get.