Mortgage rates are currently at an all time high since 2000(24 years) and based on statistics on inflation, we might see that number skyrocket further, a 30-year fixed rate was only 5% this time last year, so do I just keep waiting for a housing crash before buying or redirect my focus to the equity market

I wasn't financial free until my 40’s and I’m still in my 40’s, bought my second house already, earn on a monthly basis via my investment and got 5 out of 5 goals, just hope it encourages someone that it doesn’t matter if you don’t have any of them right now, you can start today regardless your age INVEST and change your future! Investing in the financial market is a grand choice I made. Great video! Thanks for sharing! Very inspiring! I love this.

Keep in mind that during the 80’s people were encouraged to save due to the interest rates. Right now there’s very little incentive to save because those who are saving are watching those who are reckless taking it in. I’ve been trying to save for a home and it’s been discouraging to watch prices continue to not budge because there’s people willing to get into a mortgage where they’re paying 40% of their income. It’s insane.

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.

The hack I used on top of paying every 2 weeks was to take the amount of 1 monthly payment (in this case $2200) and divide that by 26 (which would come to $85) and add that to my biweekly payment. Over time I added more and more to that extra amount until I was paying $200 every other week by the end. The last $100,000 of my mortgage disappeared in no time.

Got. 30 yr mortgage. Made extra payments as I could. Paid it off in 19hrs 😊

Risk free investment rate (money market etc) is 5%+ currently. Put the extra payment amounts into a money market, pay taxes on the interest, collect interest, pay off the mortgage faster. This sort of triage opportunity won’t last forever but if you’re lucky enough to have a 2-3% mortgage you’re in the money

We got a 25 year mortgage. Trying to pay it off in 15, but keeping some things in mind. 1. Emergency fund of 15k+ (no one's health, job, or assets are guaranteed) 2. Employer's match and personal contributions - Tax Savings 3. Charitable giving - healthier mentally, physically and spiritually (p.s. also Tax Savings) 4. Optional: 20% of annual salary available in something growing and accessible (index etf, stocks, mutual funds) Often banks don't care if you are ahead of schedule: so be safe and God bless.

I and my wife own single home family rentals. we have 200,000 U.S left on mortgages. We are now considering the possibility of maintaining 70,000 U.S annual income by selling and investing in stocks and bonds. How does this work out?

paid cash 11 years ago. do it if you can. better than the market and we slept like babies. '' i stand here before you, owing to no man...''

The amount being discussed is roughly the size of many people's credit card payment, or car payment. Making a different choice either of those two things can literally give you 15 years of your life back from your bank.

Mortgage hack: mortgage interest is all front loaded, so if you are ever going to make extra payments, it helps a lot more if you pay them earlier in the life of the loan vs. near the end.

Great info. George!

Just paid off our student loan yesterday! Our next goal is the house! We’re going to double our mortgage payment because we have the margin. Should be done in 6 years if we keep it up

Making one additional payment each year in December is not the same as bi-weekly payments. You pay interest on an amortized loan everyday that you are borrowing the principal. With bi-weekly payments you have 2 partial payments through the year directly to the principal balance therefore reducing the interest accrual. If you make one principal payment each year, only in December, you’ve already been charged interest the last 12 months.

Another great video🙏🏿😊

I like some of your content and I disagree with some of it, but one thing I love about your channel is the progress bar you put on during ads.

I’ve been in the mortgage business for 30 years. You cannot use the bi-weekly mortgage strategy unless your mortgage is specifically set up for bi-weekly payments with your servicer. If it’s not set up for bi-weekly payments, your half payment will just sit there as an unapplied payment UNTIL you make the second half of the MONTHLY payment. A strategy that achieves the same result with your monthly payment is to take your monthly Principal and Interest payment, divide that number by 12 and apply that amount to regular mortgage payment as extra Principal. You will typically knock six or seven years off the term of your 30 year loan.

Everyone with an under 4% mortgage trying to figure out how to extend their mortgage...

My mortgage is 780 a month and currently I am sending 2700 dllrs a month and on track to pay it off in 3 more years.

Good video George

That was a pilot emoji, not a flight attendant...

Fun fact: cauliflower,broccoli, cabbage kale and Brussels sprouts all come from the same species of plant

Yeah. Honestly this is good advice. I would add.. that there's some additional nuances to this. The earlier you are in you loan, the better results you get. If your mid way into your loan. This really doesn't cut that much time off. But.. just use a debt payoff calculator and if the numbers work out to your satisfaction. It's a great method. Also a nuance... technically in paying off loans. Paying over time generally performs better than saving a bunch and making lump sum payments. Again. Some nuances to this. Depends on how long. What your doing with the saved money. And obviously if the lump sum pays off the loan today. Thats better than paying that amount over time. Etc. What I'm specifically talking about are short term lump sum payments. Like... say you want to put 20k towards the principal this year. And it doesn't pay off the house. You decide to pay once in July. And the rest in December. In the long haul, if you do something like this frequently. You would have a slightly faster payoff and pay less interest if you had just increased your payment by $1667 per month. Because in loan repayment much of the savings in interest happens in earlier payments. So delaying additional payments means you get hit with the interest you would have missed with regular payments. But.. yeah. Sometimes the fastest way isn't the best way for you.

This was a good one! Thank you for sharing 🤑

Thanks GK.

Instead of doing 1/2 every two weeks, I just pay a full payment every 28 days, which is still 1 extra payment a year. It literally feels no different at all from paying it once a month.

Yeah, sorry, I agree with you guys on a lot, but I'm not aggressively paying off a 3% mortgage to miss out on twice (at least) that in stock gains.

In 2024,don't set new year financial goals without consulting a financial adviser.there expertise ensure a solid plan for success.Building wealth involves developing good habits like regular putting money away in intervals for solid investments.

Excellent video. This is EXACTLY what we plan on doing when we buy hopefully next year.

One thing to remember on this point is some companies hold the funds until the completed payment is received if the loan is set up on monthly payments. Weird I know... most mortgages have to be set up with biweekly payments when the loan is created, in addition some do not let you make the biweekly. You can get this by just dropping an extra payment on each year. Loving the videos.

I’m on track to having my 30yr mortgage paid off at the 15yr mark. Using large extra payments each month.

Yeah Jeremy! Nice teamwork y’all!

A big flaw in your analysis is investing the $1775/month. If the payment is PITI, you still have to pay property taxes and insurance on your paid for home, so you really only can save the principal + interest portion of your payment (approx. $1000-$1100/month depending upon your taxes). The context of the video is great, but I felt you missed it there.

We had a 25 year mortgage. Weekly payments with options to pay extra any time we wanted. We were able to make at least one extra payment every month. We paid it off in 12 years.

I’m glad you mentioned the bit about just figuring for the monthly extra and paying it still monthly accomplishing the same thing. I was wondering the point of paying bi weekly instead of doing that.

I ❤ how funny you are between giving us valuable advice! Ty

I do bi-weekly + add an extra payment each month that is equal to the amount of 1 bi-weekly payment, If I keep paying this much I'll have my mortgage paid off in 12years instead of 30! Plus I'll save myself 200k in interest!

I'm doing this with my car loan; it's at 6.7%. Leaving my mortgage alone, which is at 3%. Returns are greater elsewhere

That’s my foods food should have been Ron Swanson in parks and rec 😂

Just for some additional context: If Whitney were to put that $190 extra per month into the market every year for 30 years using the same return assumptions George is using, she would have a nest egg of almost $400,000 from that $190/mo alone.

Always great content, but enough with the cats, Kamel lol

my mortgage does not allow for prepayment unless its the entire balance... if we pay ahead. .they hold that $ in a non interest bearing account to apply to next month... sooo... no paying extra for us... best we can do is put extra into HYSA and accumulate till we can pay it off fully.

Uncut gems reference epic

The therape plug blew my mind

I love the humor!😂

You don't need to be making an extra payment each year. You just need to be making all your payments the day you get paid. Interest on your mortgage will typically be calculated daily, charged monthly. If you get paid fortnightly but pay your mortgage monthly, then for a chunk of every month you have money sitting in your primary bank account not earning interest, when you could put it in your mortgage and have it saving interest. You can put exactly the same number of dollars into your mortgage every year and still end up better off simply by paying the appropriate amount of money into your mortgage every time you get paid. Of course, any extra money you pay into your mortgage above the required payments will also make a big difference. Twenty dollars a fortnight, fifty dollars a fortnight - it's amazing how it adds up over the lifetime of your loan.

It all depends on your interest rate. Interest rates being what they are now (~7%) it makes more sense to pay off early. With interest rates lower than 3% like in the past, you are losing real gains in the market by paying the mortgage early. One gets much further ahead mathematically by taking the extra you'd pay to principal and investing that. Do the math...

Cooked and mashed cauliflower makes a pretty good substitute for mashed potatoes. Just saying...

I started out (when I was younger and cash-poor) by sending in the next month's principal with each payment. At the beginning of a home loan, most of your payment is interest, so even a small amount of extra principal at the beginning of the loan's duration makes a bigger impact than you might expect. You do have to remember to check the box to direct it to principal, though.

Hiring an mma coach works be ideal lol

Life hack. First house is a quadplex with 3% down. A good realtor can find one that will pay its own mortgage and give you an extra $400 to potentially even $1000 extra on top. (Yes I’ve seen it.) Take that extra cash and pay off the mortgage. Or. Don’t? Save it, buy your next quadplex, and make twice the income. Save it, in half the time, your next quadplex, and so on and so on. The real estate game isn’t for everyone. But ideally? At least find a way for something to pay your mortgage for you, if you don’t want to get into real estate this will at least allow you to pay off debts much faster. 🙏

Our first home purchased in 2019, got a 30yr at 3%. Made payments weekly and doubled the amount to lower principal directly. To be paid off in 13yrs instead of 30. But decided to sell at market peak in 2022. Made a huge amount, more than twice we paid for it in 3yrs. DCA'd into bitcorn at the lows. 😅

I just make big chunk payments as I can. This month my car insurance is due which I pay in full, so there really wont be any extra this month. We have 138k left on out mortgage, 6 years into our 30 year mortgage. I enjoy seeing the balance dropping quickly

Albino broccoli 😂 You crack me up!

Heeey we love cats George! Be nice to the strays! They can’t help it! 🐈

I’ve got a cheap mortgage (2.7%) so it’s hard to convince myself that I should pay it off with inflation running so high (over 3%) but based on this channel I’m now paying 2x my monthly payment so that my 30 year gets cut down to a 15 year. I could pay it off today but then I’d drain my savings, which is earning 5% at the bank, and paying it in 2024 dollars when in the future, dollars will be worth less and I can pay it off with cheaper future dollars.

2.75% interest mortgage rate here. No way I am paying a cent more than the minimum and no way I’m paying this off earlier

Great advice, George. Just an FYI - I believe your emoji, Whitney, is a Pilot, not a Flight Attendant. Note the Pilot hat

Ok, the cauliflower had me giggling! I completely agree, George, but I thought with your gluten allergy, you might appreciate cauliflower pizza crust 🤷‍♀️

With a 2.25% 15 year mortgage and getting 5+% on my savings my "hack" is shovel as much as I can into the savings account then when the rate drops BOOM I cut a chunk off my mortgage. I'm way past the "but you might get tempted to spend on something else" stage of life but I am it the, could have a really big emergency where the extra money could help so having this mortgage sinking fund rather than tie the money up into my house gives me more peace of mind.

"thats been in heat since Tuesday and won't stop screaming" 😆😆😆😆

I'd rather put extra in my retirement

We paid our regular mortgage payment monthly, and then paid the next two principal payments monthly (effectively paying three principal payments monthly, along with one interest payment).

We were afraid of a strike slashing our income so did low payments biweekly and doubled them. Then if disaster struck we could return to single payments. Every renewal date we dumped our income tax money on the mortgage ballance. Worked well for us.

I don’t disagree with this but I think people should in general be prioritizing maxing out Roth and 401ks first. It’s not that you can’t put more down than the principal it’s just you shouldn’t disrupt from an optimized retirement savings plan to pay off a 4% mortgage

Hey now. Don't be hating on cauliflower pizza crust. It's actually really good.

I am not sure about the states but Canada has accelerated payment programs

Can anyone help me where to find similar background as it is in 1:43 for example? (the black with scratches) ? :D ( I know that Im out of the topic) but thank you 😍

I have $110k left on my 30 year fixed. I'm trying to talk the wife into making double payments a month. I'm pretty sure she will agree to it and then it will be paid off in only 6 years, saving over 35K in interest.

I'm DCAing in Blcktken300 as well. ETH heavier DCA and ALGO. I'm taking your advice and starting Google tomorrow with a 50 dollar purchase and continuing Microsoft and Apple. VTI and VOO on another app and longterm portfolio. Here we go family!

Just make one additional principal payment every year and call it a day. Works out to be about the same with bi weekly payments.. For 30 years it be reduced to about 23 years..

Aye don’t talk about my cauliflower like that…😂

It is because of how often the interest is calculated

Or get a 1st lien Heloc? Pay simple intrest and not devils arithmetic (amortized intrest).

George just wondering what you think about all this hype on velocity banking to pay off your debt and mortgage in record speed...OH I love cauliflower by the way....

Property taxes and or state and city income taxes. For us, they eclipse the mortgage, and they never go away.

Good morning

Albino Broccoli hahahahaha good one.

First step find a house that’s under $300k :(

A home is an investment similar to other investments. My mortgage is 2.75% fixed, and I have a $1600 payment every month. I could put another $400 into the mortgage every month, or I can put that money into my 401k. The $400 into the 401k is a better choice than $400 extra into the mortgage every month. The numbers work out better. Investing that $400 into even a basic index fund would work out better financially. Of course it takes you actually investing that money. I think the Ramsey assumption is that for most people, it is mentally easier on them to pay down debt rather than look at a long term investment strategy.

5 years 6 months that's how long it took me to payoff my 30 year fixed rate. I did 30 because I knew I was going to save the difference and pay off early.

Given that mortgage interest is tax-deductible and even current interest rates are below the average rate of return for the stock market, you'd be better off investing that $190 every month. IF you have the discipline to see that ever-increasing account balance and leave it. Don't try to time the market, don't pull money out for toys or emergencies, just buy a good index fund and let it grow.

Ask "The Money Show" guys about Stash McGee vs. Leisure Suite Larry, the tail of two savers

I bought a duplex with the intention of living in half. The other half pays the entire mortgage. The plan is to move to a single family home and the income from the half I currently live in (and will move out of) will pay for more than half of the new mortgage.

This is generally good advice, with one caveat: it depends on your interest rate. If your mortgage is at a 2% interest rate, but your high-yield savings account earns you 4% interest, then it may actually be a better idea to put that extra money in the HYSA. Earning 4% interest on that money, but losing 2% due to mortgage interest, still gives you a net gain of 2% on that money.

George, the other benefit that you SADLY did NOT mention of bi-weekly payments is that the interest that you are paying when you make your second payment of the month is off a lower principle and there YOU PAY LESS IN INTEREST EACH MONTH. I have my mortgage set on autopay to pay weekly, so 4 payments each month so payments 2 through 4 are always off a lower principle so less interest paid over all. I say this is pure genius, and yes I did come up with this idea on my own. BAM!!!! When can we get coffee, that is organic and Fair Trade, and ride in your hip Tesla?

Link to mortgage calculator?

Pay 408€ more on our mortgage every month. It’s tough but we already cut off 10 years. Now we are going with lump sums to finish it 2036 instead of 2040

I just invest the extra rather then pay down the mortgage and once I can pay it off in one shot I may do that

I don't think all places let you make partial payments.

Alternative to paying off early: If that 2.2K was invested for 30 years, they would have had 361K after 30 years (using market average at 10%). As an alternative with 7 years early investment of that full mortgage payment, they would have a $250K. So an alternative to this is that he made $110K. But lets be honest, most people who do this, don't invest the overpayment anyways, so its probably better to just pay it off early.

How do you make sure it’s applied to the principal balance?

I’m curious which is better bimonthly payments VS dividing the payments by 12 and pay that additional each month?

Cauliflower is my favourite veggie 😂

Georgian here…. Do not take your kid to Six Flags over Georgia… it’s gotten ghetto and dangerous.

😂😂Albino broccoli!!😂😂

Hi! Whitneys are cool! We get it done! 😂

Paid off 20 year mortgage within 3 years… tripled my monthly payment, wherein the 2 extra payments are paid directly to principal… Best decision ever… Now, I’m working on for my downpayment for my 3rd property. 🎉🎉🎉🎉 Slowly but surely.. ❤

This works if your bank allows partial payments. Mine left it in a “suspense account until the end of the month and it got the other half.