How To Pay Off a Mortgage

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[florianmadison]

I paid up all my mortgages in 2yrs while working with a Financial Adviser. I’m 50 and my husband 54 we are both retired with over $3 million in net worth and no debts. We got to realize that the secret to financial freedom is making better investments.

[Williamjame]

Most Americans find it hard to retire comfortably amid economy downtrend. Some have close to nothing going into retirement, my question is, will you pay off mortgage as a near-retiree, or spread money for cashflow, to afford lifestyle after retirement?

[GaynorFamilyHomestead]

Watching in 2023 and and laughing how he balks at the 3.6 interest rate being high 😂😂😂

[truthlove]

Just pay ahead on the mortgage, don’t waste money on closing costs again. Pay on it as if it’s a 15 yr by pulling an amortization calculator online. And this way if they run into financial difficulty the have the option to make the lower payment.

[christianpeyret]

I'm glad I ran into Dave Ramsey's YouTube channel. His videos saved me from making financial mistakes.

[jiggeplaya]

Back when I went to refinance in 2010 my rate was 6.5. I did the numbers with the bank where they were going to give me a 4.7 I believe. Long story short, my wife and I decided to double and triple our payments and paid off our home within 3 years. Thought we did better than refinancing

[burntblonde]

I feel the best mortgage is 15 years. You get the best rates. Then you have to buckle down, then you’re home free!!

[indman]

Pay extra towards the Principal of the loan per paycheck it will do more to take down the interest than paying by the month, printout the amortization of your loan by going to a online mortgage Calculator or get one from whoever gave you the loan, keep track of your progress by writing how much you added to the principal payments and the dates, Banks tend to not put the funds in the right place, never totally trust your lender, keep track it's your money.

[mrjack]

This was awhile back, but I wouldn't refinance from a 30 to a 15 unless you don't plan on paying the house off way early or can't drop your rate more than a point. Just throw more money at your loan each month. If money gets tighter for some reason, you can skip those extra principal payments for awhile and not have to pay new closing costs on refinancing. If you can drop your rate from 6 to 3, and you still have a ways to go, then I would definitely consider refinancing. Its all just numbers and math.

[shawnballee]

Nice guy. How about instead of paying refinance costs (and having the bank MAKE you pay it off faster) you just take control of your $ and pay it off faster. A 15 or 30 year loan has nothing to do with how fast you pay off the it off in 6 years! Set a goal, then stick to it!

[bestly]

Anyone else thought Dave would reply with "You want to get back into debt to pay off your daughter's car? Are you insane!?"

[lablvr]

what Dave says about being house poor is spot on! if you cant afford the neighborhood you like then you can't afford it ...its that simple.Not worth putting yourself and or your family out $$ life is short and the most important part of our lives is our FAMILY : )

[DragonNova]

I use the interest matching method, make the usual fortnightly payments and at the end of each month transfer any interest charged back in.

[pollodormido]

I like people comparing their numbers!

[nataliequansah]

Good man👌 I love hearing things like this- it inspires me!

[thunderslug]

"3.6%? That's a little high" *5 years later, cries in 7% interest rates*

[DMS]

“We just wanted to get into the house”. Bankers love people with this mindset.

He was ripped off

[shariscott]

I WISH MY DAD WOULD CALL IN AND MAKE AN ANNOUNCEMENT LIKE THAT TO ME TOO!

[Kalvain]

I smh when he said that 3.685% was high. Commenting in January 2024, the rate at my local credit union is 6.854% and Wells Fargo is at 6.442% for a 30-year fixed mortgage. Rates were higher, but they're currently on the way down again. Don't refinance unless you can do better than a 1% lower rate on comparable same-term loans. If going from 30 to 15 years, aim for a 2% rate reduction. Otherwise, you won't save money beyond paying the difference in closing costs and interest until you hit somewhere in year 5 to 7 on the new loan. If you're going to move before that, don't refinance.

[mannyflores]

Got 30 year mortgage. God willing next year is year 7 and we'll pay it off. $180k