Saving $1000's Paying Off Your Mortgage or Car . Years Faster. Step by Step!

Most of us when purchasing a house had to get a loan. Paying off your home or property can be one of the most freeing things you do in your financial life. As we all know, "the borrower is slave to the lender." The good news is that you can be set free much faster and save thousands of dollars in the process. We have used this on different loans in life and it works. Have any of you also done this?
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[@justinbowman4591]

Finally someone is talking about the true cost of a mortgage loan! People just don't understand how much they take in the end. THANK YOU!!

[@HealthAndHomestead]

They are more expensive than most people think.

[@fletton_man]

Amen! I managed to pay off my mortgage on a flat in London and make an outright cash purchase of a detached house with a large garden, outside London. I achieved this at age 41 years. And yes, it feels good.

[@HealthAndHomestead]

Congratulations. That is a blessing.

[@sarahjeantalley9565]

Thank you! no really I mean it! No one ever showed me about this, or anything about mortgage. I am 38 and never owned a house because I didn't want to be trapped. BUT this shows me how to not become trapped AND have a Farm! Blessings to you sir

[@franceslucas1405]

We have no debt except for house payment and we pay extra on the principal every month! It was not easy but we did it! 😊

[@klouise2800]

In Canada with our bank, we pay our mortgage weekly and are allowed to make an extra payment each week up the the regular mortgage amount. It does have interest taken off but it is almost 1/2 of what the regular payment interest is. Once in a 12 month cycle you can make a principal payment up to 10% of the amount of the original mortgage.

[@JustFollowJesus]

We are still renting for 1300/mo and saving 20% for a down payment on our own home. This information will be incredibly useful if the Lord should tarry 🙏

[@HealthAndHomestead]

It took us a long time, longer than expected. The Lord knows.

[@michellel5444]

We pay extra principal of $200 every month but this encourages me to do more. Thank you! I've stopped contributing to my 401k right now because it feels like it is going to crash anyway. (I will restart if things look up but only contribute to my Roth. I will also start an investment fund outside of retirement fund too. Im incredibly frustrated by being penalized for using my own money. During these times I'd have pulled most of my account and paid off mortgage.) That's a good chunk of money to pay extra on the house. We no longer take out loans for new cars or have car payments which is HUGE. I don't think people realize how much they box themselves in with these monthly payments. If you have both I'd start there. It feels like a big win to pay off an auto loan and is highly motivating.

[@HealthAndHomestead]

That is awesome Michelle. Congratulation on being able to avoid the car loans. There is a real freedom in making choices to be free from debt and the journey there is tough but worth it. Blessings.

[@daphneraven6745]

This works really well. I’ve paid off cars faster this way as well. Just whenever you happen to have a little extra money go in and put it on the loan. A lot of financial institutions have penalties that they impose for early repayment of loans, because they would far rather have much more money out of you over a longer period of time. It’s a good idea to check that out. Because sometimes the penalty is well worth paying off a loan early. And a lot of the time, you can go ahead and apply the extra money against the debt, and they don’t even penalize you. That’s well worth knowing. And sometimes, if your institution is really inflexible, another one with better terms will be only too glad to transfer your loan to their institution. Also, not everybody knows that you can renegotiate the terms of your loan periodically. That’s really good to know for when interest rates drop.

[@catherinemelnyk]

Almost all online house/property 'listings through real estate agencies here in Canada have that amortization table attached to each ad. Another thing, up here it's called PIT or Principal, Interest and Taxes. It's automatically calculated together. Plus, if you are getting a mortgage on your home, you MUST show you have insurance.

[@3rworksllc704]

Thanks for the encouragement and vision to make liberty a reality! Blessings brother!

[@HealthAndHomestead]

You are welcome. It works!

[@khester7397]

I just found your channel and i love it. Thank you for the thoughtful, inspiring ideas.

[@atlantamom21]

Thank you for sharing this. I wish this video had been out, when we bought 18 years ago and then refinanced 10 years ago. Valuable information. Thank you again.

[@reggie2334able]

It’s never too late to start hammering away my friend

[@atlantamom21]

@@reggie2334able thank you. Taking a check to the bank, today.

[@reggie2334able]

@@atlantamom21 my wife and I have been doing extra payments for the last three years. It makes a big difference. When he says in this video you’ll never be more free when you’re debt-free. Dave Ramsey has some good videos on this topic as well good luck and God bless

[@aprilhiggins6885]

Thank you for time and sharing your knowledge.

[@BangMaster96]

I never understood APR before this, I was always confused as to what it really means. Now I understand it well, thank you so much for this video. I always thought paying off Mortgage fast was a bad idea because the average person switches a Home every 7 to 10 years. But, paying off one property completely should be a priority, especially since no one is going to be working their entire life, it would be nice to never have to worry about Rent or Mortgage.

[@tomashbaugh8891]

Ok I think that’s pretty cool. I’m looking at my mortgage a little differently. Anything extra I put in is a lost capital (the proverbial bank black box). Thirty years from now that 1000 mortgage payment is nothing I mean the dollar is going to be worth a lot less, A LOT LESS. I get to play with todays dollars and pay the bank with tomorrow’s dollars. I would rather control that extra principle for my families benefit. If done right I can pay the mortgage off early if and when I want too. Offers a lot more flexibility. Good discussion

[@kaybell1501]

If you can make your payments fortnightly (2 weekly) you make an extra months payment every year which also drops your principal amount quicker. Another thought. Is it possible to put some of your mortgage on revolving credit and pay that portion of quicker. Then repeat with the next chunk. It would take discipline not to run up to your credit limit each month but might help.

[@krijoe3433]

I paid well over 20% down. Still had PMI. It was 5 years or 20% which ever is greater.

[@darkbrewedhemlock7361]

This is amazing, thank you, Chad!

[@thomasbarnett3071]

Thanks Chad!

[@cathleendell8111]

Great info! Is there a specific “date” to pay the extra toward the principal amount by each month?

[@christianb1176]

I think whether this strategy is worth it depends on where the extra cash might go. If it's going into just cable, or some other frivolous cost, then this is absolutely the thing to do. If instead you put it into some index fund or stock, it might not be optimal. Depends on what kind of return you can get on your investment compared to the interest rate of your loan. Generally, I find it pretty easy to beat out the current reasonably low rates. Currently, I can make money faster in stock and index funds than I can save by paying off my 30 yr mortgage. Might not always be that way, but worth thinking about.

[@christianb1176]

And listening further, I see you've addressed this idea.

[@abby04tiz]

Thank you...

[@farmer1908]

No one likes debt, but sometimes that mortgage allows you to buy other things instead of putting everything you have into your mortgage. For me it allowed me to buy more land and farm equipment. Yes I have my monthly debts that I owe to my bank, but at the same time my assets and business are growing. A mortgage is a much better debt than a depreciating car payment. And no debt would be amazing, but it takes time to get there.

[@j.l.salayao8055]

But when your business go down, your house will go with it...lol.

[@alchemisttttt]

Very motivational

[@ChirRho777]

Can you give clarification on the part of where you pay one months p&i plus the next month's principal and how that wipes away the interest for that next month. Are you saying you just do that one time or every month? Or just hear and there?

[@HealthAndHomestead]

You can do it once and it will take care of the next months. But then you still have to pay your mortgage the next month. You can do it once, twice or till your mortgage is done. The more you do it the more months you will not have to pay back.

[@theghosttiger1446]

I own my home!

[@gerlindakumer8966]

Except FHA loans. I paid a down payment of$80000 on a 120,000 home n I still have to pay PMI! 🤬🤬🤬

[@musicfever24.79]

Any books on how to be your own doctor; for u to learn how to know what disease or sickness you have and to reverse it.

[@HealthAndHomestead]

This is actually better for natural remedies probably that the other book I sent a link to. This is an expensive book, but it is fantastic. We have this one also. www.amazon.com/Natures-Healing-Practices-Remedies-Encyclopedia/dp/1572587156/ref=sr_1_2?crid=1K9C2HJ6ITK04&keywords=agatha+thrash&qid=1640735850&sprefix=agatha+thrash+%2Caps%2C273&sr=8-2

[@gonzfamily7663]

I am 10 years into my 20 year loan and I want to start to pay 2000 into my principal a month how fast can I pay my house off I have a 58,000 balance

[@rachellep537]

Wait so we are confused about one thing. so after you've paid ahead the next months principal and the " interest disappears " what do we pay come the next month ? Is the idea that when you keep paying the principal ahead and you never pay interest? that seems too easy but i want to make sure we understand so we dont get into trouble here.

[@rachellep537]

Also we just purchased a house in December so we've made a few normal payments so we didn't start our loan paying that way. However, if this is still possible my question is ; since we have already paid Aprils mortgage payment if we were to now pay Mays principal (does the interest payment for May still go away) and then come May 1st what are we paying? Junes principal? this is where im confused.

[@HealthAndHomestead]

Great question. You still have to pay every month the full mortgage payment. But your loan will be shorter and you will never have to pay back the additional interest when you paid next months principle. You cannot skip a month of payments even if you pay the next months principle. I wish I could explain it better. I will make an imaginary loan. Let say your mortgage is $1000. Let's say this month 300 is to principle and 700 is to interest. You have to pay the 1000 no mater what every month. But next months payment would have been $1000 with 302 to principle and 698 to interest. If you pay extra toward principle $302 this month you never have to pay back the 698. It is kind of like a month of the amortization schedule goes away. But you can't skip a month. But you have to make sure your loan allows additional principle payments and doesn't have a early payoff penalty. I wish I know how to explain this more simply.

[@rachellep537]

@@HealthAndHomestead oh ok! thanks for clearing that up. We appreciate the fast response God Bless

[@jamesbaker1110]

@@HealthAndHomestead Ok. LOVED all the knowledge (hated the math). My question is, we are now eight years into our mortgage. Do we start with what we owe now or with the orginal loan amount? Have always paid extra but more along the lines of the $100 figure. Thanks from your newest subscriber

[@cathleendell8111]

@@HealthAndHomestead I understand the concept. I am assuming one should do the calculations each month to determine how much to add to the next payment? Or can we just print out the initial payment schedule and use that table to determine how much extra to pay each month?

[@alcopower5710]

Any advice for someone that’s trying to find bare land but my credit union wants an incredible 50% down? I’m looking into the USDA loans but seeing a VERY mixed bag of good and bad experiences. The no money down would be a blessing but wanting to know about hidden fees etc. Thanks in advance 👍

[@melindaatkins11]

USDA loan is the way to go!

[@alcopower5710]

@@melindaatkins11 did you get a usda loan? If so tell your experience

[@melindaatkins11]

We did and we went with Metroplex mortgage out of Florida, Sean Stephens has alot of USDA videos on KZbin. He is in Florida but is licensed in several states to do the USDA loans. We are in Tennessee, it was a very smooth process for us, no hidden fees but we do have pmi monthly added in our payment because we also did no money down. Best of luck to you, if your in a state that he serves I'd give Metroplex mortgage a call and speak with Sean!

[@alcopower5710]

@@melindaatkins11 thanks for the information 👍

[@JELAsArk]

💪🏽💪🏽💪🏽🙏🏼🙏🏼🙏🏼🙏🏼🔥🔥🔥🔥 . Great video!!!

[@HealthAndHomestead]

Thanks.

[@KingArtexerxes]

Isn’t that about equivalent to taking out a 15 year mortgage? It seems it would be smarter to do that instead. The reason people take out 30 year mortgages is typically because they don’t have any extra money. They probably don’t have a way to cut expenses by much.

[@HealthAndHomestead]

The shorter the mortgage the better. You will pay less interest. 15 is better than 30. 5 is better. But obviously the shorter the more expensive monthly payment. Your point is correct.

[@daphneraven6745]

@@HealthAndHomestead : in that case, would a person be better off signing up for the longer-term Loan, and then just paying it off faster? That way, less of the actual payment would be in interest in a short and long term?

[@JammyJames66]

This is such a great video! Thank you so much for sharing! I actually have the same question…we’re looking into buying a property on a 15 year mortgage (which we could afford to make additional payments on), but would we save even more money by taking out a longer term (eg 30 years), making the same additional overpayments, and effectively paying it off in around the same time frame as the 15 year?

[@DavidNewmon]

I would argue that if you can get a thousand year loan, do it. When times get tough, you want a smaller required monthly payment... Over paying will shorten the length of the loan and save interest, but it's only a useful tool when you have the extra money to throw at it. Another option is to refinance the mortgage 10+ years into it, simply to lower the monthly payment (reset the 30 years). Again, you can add additional every month but the minimum commitment is lowered and if you need a little extra cash for something, you can opt to not add the additional payment for a month or two. Lower your commitments to increase free cash flow... This is where you have the flexibility to make things happen. Paying off the mortgage is going to unlock a huge amount of free cash flow but getting there is a long journey so don't expect it to be easy, plan for hiccups around the way. You are essentially saving money on the cost of the money (the interest rate) for every additional dollar you add to the payment. So if the rate is 4% then every $100 put into the additional payment saves you $4 every year ($0.33 per month). If you can make 10% on the stock market, don't add additional to your monthly, and invest it in the market instead... It costs 4% on the mortgage but you earn 10% on the market, netting you 6% gains. Just remember that one is a gamble, the other is guaranteed rate.

[@aw5832]

I would argue that buying assets that appreciate at a higher Apr than a mortgage rate is a better way to go. You could literally do a cash out refinance add 100000 to your mortgage at 3 percent and earn nine percent on that 100 grand just by buying stable coins. No risk big reward.

[@mmccrownus2406]

The famous “no risk” play may mot be no risk

[@johnyracercat]

If you can get a huge loan for 3% and get a tax write off that makes it effectively 2% and the inflation rate is over 9%, why would you pay it off early? There are different sides to the argument. I'm on the fence about it. If your house was paid off and you knew you could cash out 300k at anytime for 3% and invest it earning 9%, would you consider it. Basically earning 6% of 300k for nothing.

[@HealthAndHomestead]

In my mind debt is slavery to a bank. "The borrower is the slave of the lender." I like freedom. Sure you could make income off debt in the stock market. You could also have a stock market crash 90% like in the Great Depression. Unlikely, but always a possibility. If their is a stock market crash like in the depression you may lose your job, money in the stock market and your house because you didn't pay it off. A paid off house is a safety net. I would rather own it than let the bank own it. But we all get to choose. All the best to you.

[@kaybell1501]

Interest rates can increase. Even if you have locked in your interest rate for 5 years interest rates will have changed when it is time to renew. Your circumstances can have changed as well.

[@johnyracercat]

@@kaybell1501 We typically have 30 yr mortgages where I am. Rates have increased already though.