How To Pay Off Your Mortgage Faster

How does money really work? Is it good to pay your mortgages as soon as possible? Let's straighten out some common misconceptions in today's episode. Learn what they don't teach you in school, and I'm pretty sure a lot of financial advisers get this wrong too! Stay tuned!

To your abundance!
Doug Andrew

Key Moments In This Episode
========================
00:28 What I do for people
02:11 A short story
03:49 LASER Fund
05:20 You're not accomplishing anything because...
07:01 Would you do this?
09:48 The Parable of the Talents

What To Watch Next
========================
How Can I Become My Own Banker?

Did you love this video?
Want to learn more wealth and life empowerment lessons from Doug?
Here are some next steps!
========================
How to Diversify and Create the Foundation for a Tax-Free Retirement

How to Lead Your Family/Business from “ME” to “WE”

Visit Doug Andrew’s website:

Music
========================
Song: LiQWYD - Glow (Vlog No Copyright Music)
Music provided by Vlog No Copyright Music

========================
Video by Nate Woodbury

#DougAndrew
#3DimensionalWealth
#AbundantLiving

[dt]

i paid off my 30 years mortgage in 6 years by attacking the principle hard. after that i’ve been investing 60% of my net salary into my roth and stock accounts. i like to do thing the simple way!

[JERRYR]

Extra principal payments helped me pay off my 30-year loan in 17 years. Work bonuses, overtime, side hustles etc went to principal and not fancy cars or toys. Now I can buy the toys I really want..nah. I like my freedom from debt.

[Drizimar]

Paying off your mortgage early and reinvesting that mortgage $ (including the little extra) is the only way to go. He's got you going so many different directions you don't know which way is up. He is using bankers' math (sounds really good), but designed to make the bank rich, not the customer.

[kckuc]

Worked for me, paid 2 houses off in 8 years instead of 15 by extra principal payments. Everyone never considers risk. Foreclosure happen all the time for people who don’t have their mortgage paid off and especially in bad times.

[brianadams]

80% or more of people do not get a tax deduction from a mortgage unless they itemize which most people do do not do because the standard deduction is higher and you lose that when you itemize. So unless you have enough deductions it is not worth it. The standard deduction is somewhere around $26k

[larrymorrow]

Im not buying it. Pay off your mortgage as quickly as you can!!!

[MARKETING]

If you pay extra principal payments from the beginning of the loan you get the biggest savings.

[kazemsharifan]

Acctuly I did extra every month toward my principle and paid my 30 years loan to 21 years.glad did it and feels good when you are not worries about that damn payment any more....

[rer]

So the suggestion is to not put more towards paying off your principal balance but instead invest that money towards a possible 3% higher earning fund which the current administration plans to impose a tax on unrealized money.. sounds like a lose lose situation. Think I'll continue chipping away at my principal balance while investing since I can write off most any investment losses.

[davidrpriest]

I took out a 30 year mortgage in 2020. I have a 2.375% rate. I will never prepay this. I am at about 1.5% after my mortgage interest deduction. That money I would spend paying it down is better invested almost anywhere. Even if I put it in a savings or money market, I do better. The advice in this video is solid. By the way, I own a mortgage company so I have run this math many times.

[OB]

One LARGE variable missing from your equation - risk.

[turnovertheleaf]

I would never leverage my family home for a possible 6% growth (9%- 3% mortgage interest). Taking the cash flow from NOT having a mortgage payment and aggressively investing is much more safer!
There are several possibilities of risk you are not covering. I urge ppl to do some research on the differences.

Just think, if your house was paid off, would you go take a loan on it for the possibility of earning 6-9% minus the interest you are paying them for the loan??!

[billstapleton]

I bought my House in Nov 2009. I paid it off in March 2021. I doubled the principle each month. As I do not itemize on my tax return, the house did me no good for taxes. Now my rental properties give me great tax write offs.

[MRegoloveJar]

what if the amount of the yearly interest is not higher than the standard tax deduction? so you can't claim it on your taxes.
350K mortgage at 2.5% interest (2.5*2)*10, you'll pay ~50% interest in 30 years, basically 175K just in interest.
If you lower the principal you're also lowering the amount of interest you pay.

[michaelbiasatti]

I've watched a lot of these guys but none of them ever mention that your actual interest rate on your mortgage isn't the 3% you think you're paying (look at the last page of your loan docs, that 3% loan is actually costing you 49% because of the way the mortgage company's front load the amortization). That $100, 000 house will cost you $300, 000 if you pay it off on schedule over 30 years, that's one house for you and 2 houses for the bank, not to mention that for every dollar you pay the bank they can loan out $9, look up fractional banking in America. It's never as simple as they make it seem. Watch those Velocity Banking videos, I don't do it, but the gist of it is to take max HELOC money out of your house and use that flat but variable interest money to pay off your amortized mortgage (in 5-7 years). I'm boring. I'm just putting extra toward principle as best I can. Pull up those loan docs to see what your loan is actually charging for the use of their money.

[keithrichardson]

You guys pay off house ASAP. This guy is insane. Look at the unstable markets now and people getting laid off some living under the bridge.

[thebadgerette]

Just paid mine off this week and I sent extra principal payments.

[JasonLee-fcot]

Unfortunately, TurboTax says mortgage interest deduction won't count due to the standard deduction being more advantageous (and the mortgage interest deduction being under the shared cap of $10k as state taxes). So I don't think this is relevant anymore, since Doug keeps on saying mortgage interest is deductible, and that is the crux of his argument, on why keeping it around.

[bayodaman]

Good advice but rather pay it off faster. 30 yrs is a long time never know what could happen. Rather pay off my house in 10-13 and have my kids own it if anything ever happens

[bpmattic]

You inspired me to do the math in a little spreadsheet. Even without any compound interest earning, I would build up the ability to pay off my house within a couple months of when it would happen by keeping my mortgage as-is. Laser fund is just double bonus liquidity.