How Much Is Your 30-Year Mortgage REALLY Costing You?

How Much Is Your 30-Year Mortgage REALLY Costing You?



another place that people are losing money that you may not even think about is when it comes to your mortgage yes people it's so normal just to get a 30-year mortgage and go about your day and not even think about it do you know how much money you're wasting when it comes to payments and interest and all of that versus getting a fifteen-year so what I did is I went into my Facebook group and I asked some of you questions and at my YouTube community because I wanted to test your smarts when it comes to paying your house off early and it's very interesting so according to the Census Bureau the average mortgage payment is 1030 dollars now if you invested that money instead of paying it to the bank how much could you have in 15 years Oh interesting 34 percent of you got it right the correct answer is four hundred and seventy five thousand dollars half a million dollars you guys you have a mortgage payment and you invested that half-boy darzee amazing all right next question is if you had a 30-year mortgage but made one extra mortgage payment every three months how much earlier could you have a paper house all right this one was a little bit trickier but most of you thought the answer was five years but it's actually 11 years 11 years that's the difference looking like this when you have a paid-for house if paying an extra full mortgage payment doesn't work in your budget then just simply switch to paying it's half of your mortgage bill every two weeks instead of just once a month and you could still pay off your home eight years faster crazy all right final question is the average price of a home in America is 268 thousand five hundred dollars now if you got a 15-year instead of a 30-year mortgage at the current interest rate that's four point five percent which of these things could you buy with the money that you saved hey a designer handbag every six months or 30 years be a nice beach vacation for your family for the next 30 years or see a water jetpack let's see Oh everyone got this one right yep the answer is any of these yes if you just got a 15 year instead of a 30 year you would have saved a hundred and twenty thousand dollars amazing and I actually got a couple of other funny responses when it comes to this one of you said probably as big as any rental property or a lot of shoes I'm kidding someone else said in early retirement yep that's what I'm talking about amazing and you know what if your mortgage is stressing you out there is no shame and considering just downgrading or even selling your home the cash you can make could really set you up for success in the long term and if you use one of our trusted professionals that I recommend you could get almost five thousand dollars more at closing than with another agent so remember once you own your home you guys you have a paid for house and it's now an asset that's 100% yours and that really contributes to your net worth you're no longer paying the bank you are paying you and your future now if you want to find out what your 15 year payment would be we've got a free and easy to use mortgage calculator so make sure to click the link below

27 Comments

  • I can't wait to be able to be financially stable enough to start with our home! I have seen such cute houses in great locations and for a great price….it just seems like it's made to be extremely difficult. We ran into problem after problem about 6 to 8 months ago it was absurd.

    Reply
  • Kerra Foote

    May 23, 2019

    Hey Rachel! I really enjoy all of your episodes! I do have a question for you though that I'm confused about, you said if you just start paying your monthly payment in 2 week increments instead of monthly it will decrease your payments by 8 years. I'm confused as to how that works? My husband and I are currently working towards paying our house off, so any advice helps! 😊

    Reply
  • nemo

    May 23, 2019

    Music in the background is annoying and distracting.

    Reply
  • nemo

    May 23, 2019

    We had a 15 year and busted our guts and paid it off in 12. That was before i heard about DR. Now working on the babysteps with no credit card debt just a car fleece. That is next.

    Reply
  • Mauricio Romero

    May 23, 2019

    Best mortgage is no mortgage. Buy your house cash

    Reply
  • jimmy_t

    May 23, 2019

    I have a 15yr on my house. I should have gotten a 10yr.

    Reply
  • 1Grandhustler

    May 23, 2019

    I'm paying a extra 2k every month on the principal payment of my condo. I owe 95k want to pay it off in less then 2 years.

    Reply
  • Stuart123666

    May 23, 2019

    An argument against paying the 15 instead of 30 would be you could invest any extra income every month in the s&p and by year 30 you would be much better off.
    I know most people wouldn’t do that and that’s why you’re suggesting this but I think it’s worth mentioning for people who would.

    Reply
  • TruFinancials

    May 23, 2019

    Even paying just $100 a month towards the principal of the mortgage can save you thousands of dollars and over 5 years on the loan. Anyone can make an extra $100 a month from cutting something out of the budget or working a simple side hustle.

    Reply
  • Who else thinks Rachel is actually cute and would totally smash?

    Reply
  • Mat Meg

    May 23, 2019

    I’m surprised the difference in interest wasn’t mentioned more. A longer mortgage can mean possibly thousands of dollars in interest.

    Reply
  • Joshua Garner

    May 23, 2019

    1 more point, 15 year notes are usually a lower interest rate

    Reply
  • Juanco_"C.E.O."

    May 23, 2019

    Your home is never 100 percent yours. If you stop paying taxes, HOAs, etc they will take your house from you. So yea, we should do something about that.

    Reply
  • barnettzack

    May 23, 2019

    I’m already 7 years ahead of my schedule, saved about $45,000 in not paying that interest to the bank!

    Reply
  • BayAzn

    May 23, 2019

    If only in the California Bay Area a median home was 268k…right now it would barely cover the down payment.

    Reply
  • Kevin Jurkiewicz

    May 23, 2019

    15 year notes are a bad product. You can always get a 30 year and pay it off in 15 years. If something happens like job loss or emergencies you can pay the 30 year payment. When you do a 15, that payment is locked in and there’s nothing you can do

    Reply
  • Scott B

    May 23, 2019

    268k is a totally skewed average.

    Reply
  • Gamer007

    May 23, 2019

    Just pay extra, you wont really lose paying extra in advance unless contract has additional rules, at the same time you pay less monthly which is good for those with job uncertainty.

    Reply
  • Brittany Modny

    May 23, 2019

    Alot of research suggests that investing the money that would be spent on the higher mortgage payment is actually more beneficial than paying your mortgage off early. Any thoughts?

    Reply
  • Hugo Lizardi

    May 23, 2019
    Reply
  • cybercab

    May 23, 2019

    Interesting. Though that's only half of the argument. That's what you could do with the interest payments. What if you invested it outside a 30 year mortgage? You'd actually have more money. This argument is true though only half the story.

    Reply
  • TiresBiggerThanTexas

    May 23, 2019

    Just say no to drugs and 30yr mortgages.

    Reply
  • Ibislife

    May 23, 2019

    Do a 20 to 25 year mortgage, if you cant do it shorter. No matter what – it is cheaper than renting any day of the week! 😉 You can always adjust the mortgage when you make more money. Its better to own than rent, even if that means 30 years to get into the property ladder.

    Reply
  • Hey Thelma

    May 23, 2019

    Great info.thank you

    Reply
  • Saul Martinez

    May 23, 2019

    Does this apply to a rental house? .. can put a 30 year note and have better cash flow & try to pay down faster anyways? So wouldn't it make sense to get a longer one.. cheaper payments but make higher payments ?

    Reply
  • Liz Liz

    May 23, 2019

    Great info! Thanks for sharing!

    Reply
  • Guess who?

    May 23, 2019

    Just say no to 30 year mortgage!!!

    Reply

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