How to Pay Off Your Mortgage Faster / 2 Simple Strategies

Hello everyone, Ady
Simion, Coldwell Banker. Today I wanna talk to
you about something that a lot of people that
bought houses don’t know. They have a mortgage, they
sign up for a 30 year mortgage, and they’re paying a monthly payment, you know, in 30 years, you’re done. What a lot of people don’t know, in the first 10 years most of
the payment, it’s interest. The company, the bank, charges you a lot of interest up front
in the first 10 years, and very little you pay
towards your principal. So, that is why. That is what they do, so they can get their money faster because they know you’re gonna move or you’re gonna refinance so, you know, you wanna
look at your paperwork and see how much interest you’re paying in the first 10 years, because you’re not paying
much towards the principal. But anyways, what I wanted
really to talk to you about is How can you pay your mortgage faster? How can you pay your mortgage
in 25 years, for example? So, you can do two things. First, very easy to do, you normally pay one
mortgage per month, one time, so you can call your bank and tell them, Listen, I wanna pay my mortgage biweekly, I wanna pay half the first two weeks, and half the other for two weeks. What you do, you’re paying two weeks worth of payments ahead of time. That means, on that two weeks
you’re not paying interest. So if you do that, and you split your
mortgage payment in two, paying biweekly, a lot of banks allow it, it’s normal business, everybody does it, you’ll end up paying your mortgage in about two years, instead of 30, in about 28 years. So you cut two years out
of your mortgage life. That’s one thing. Secondly, what else you can do to cut more time out
of your mortgage years, you can make a thirteenth payment. So, at the end of the year
instead of making 12 payments, you know, once a month,
you have 12 payments, make a thirteenth payment, and tell the bank to apply
it towards the principal. If you apply it towards the principal, that money you don’t pay interest
for the term of the loan, you’re saving a lot of interest and your mortgage gets to be
paid around two years less. So now you’re paying, sometimes
even, it really depends, but it’s about two, two and a half years. So if you do this two, biweekly
and thirteenth payment, you may end up paying
your mortgage in 25 years instead of 30. It’s an easy thing to do, a
lot of people can afford it they just don’t know about it. And you can do that and pay
your mortgage in 25 years instead of 30. How about that? Thank you very much, that’s all I wanted to
talk to you about today. Please you make sure
you click on subscribe. so you can hear more videos like that Like my page, follow me on Instagram, Twitter so you can keep in touch with me. Ady SImion, Colwell Banker.
Talk to you all soon. Bye.

Paul Whisler

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