Why Smart People Pay Mortgage Weekly

You know what I’ve learn, sometimes just 1 simple change can save you a lot of cash. What if I told you that just by making your mortgage payments weekly or bi-weekly you could be done with your mortgage 4 years early and also save thousands of dollars ( I’m talking 10s of thousands not a small amount )

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Chapters:
0:00 Intro
1:17 This Is a Fact
2:56 Here is How it Works
5:39 Results
9:18 What to Do Next and How to do it
13:46 Outro

1. This Is a Fact
– For the first 5-10 years of your mortgage ( you’re paying the bank more towards interest than you are towards the actual money you own )
– Only 19.9% of the properties in are America are owned Mortgage Free ( so you’re going to be their a lot faster by using this rule )
– Small changes can have a big impact ( when it comes to dealing with a massive things )

For example: Fun Fact
– Did you know that if a plan off just by 1 ( every 60miles you fly you’ll be off destination by 1mile )
– So a flight to Texas can end up in California or something crazy
– So the point is, over a long period of time, small changes can really make a difference

2. Here is How it Works
– By paying your mortgage Bi-weekly you end up paying an extra month every year
– And when I first heard this, it took me like 15-20m to understand it
– I was so confused ( but then it made sense, because we are using the calendar in our favor )

For Example:
– If I pay $1000 bucks a month on my mortgage ( I’ll end up paying $12,000 dollars a year – because you have 12 month and 12 payments )
– However If I pay bi-weekly, 1000 divided 2, I pay $500 bi-weekly, that means I would make 26 payments a year ( and if I divide that by my 2 payments a year )
– Hey I’m making 13 payments instead of 12 payments ( I’ll pay an extra month )

Instant Idea:
– So I’m doing all of this just to pay an extra month
– Funny, that’s not gonna make a difference
– Remember 1 degree can land you somewhere completely different

3. Results
– So if buy a house for 300k and put down 20% ( my loan balance is 240k )
– In this example you would be saving: $28,054.44
– Idk about you, but that’s a lot of money
– And you also finish 4 years early

Ps: if you did a 15 year mortgage loan
– You would save over 100k ( and that’s a big difference )
– And you also finish 15 years early

4. What to Do Next and How to do it
Questions:
– When will the payment be credited to the Principle ( some lenders apply it all at the same time and not earlier at all )
– Is their a fee for paying bi-weekly or weekly ( and some big banks that I wont mention did away with weekly or bi-weekly payments) Crunch the number to make sure the benefits outway the cons
– Pre-payment penalties ( which is rare but double check )
– Variable Income People: this might be challenging to you
– What about my Tax saving on interest ( an incentive, should be a bonus not a reason)
– Will this increase my credit score ( no, and who cares )

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*Some of the links and other products that appear on this video are from companies in which Tommy Bryson will earn an affiliate commission or referral bonus. Tommy Bryson is part of an affiliate network and receives compensation for sending traffic to partner sites. The content in this video is accurate as of the posting date. Some of the offers mentioned may no longer be available. I’m an Accountant but I’m not your Accountant, always review information with your Accountant/CPA and your Financial Advisor.

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