Pay off mortgage quicker

Hi has anyone seen this?



What are your thoughts on it?

Edit: Its slow going until she gets to the "line of credit part"

 

30 mins??? Is there a summarized version?

 

Its silly. I started watching because she looks pretty, but it is all American related.

 

Yes, put more money into the loan.

 

This is what it all boils down to.

 

She draws lots on a whiteboard, it must be true

 

Can someone break it down for me? I’m too busy to watch..

 

Spend less on stuff you don't need - put extra money into your mortgage.

Cheers

Jamie

 

The last time I saw someone discussing finance and property and writing on a whiteboard, Warren Buffet was insulted and there was more swearing than a George Carlin standup routine. Can someone assure me this is different before I watch it?

 

prettier than you last time watched.

 

If your loan balance is 500k then pay/transfer 100k per annum for 5 years into your mortgage account, you will pay it off in 5 years

Better still stick in an offsett

 

Where do I sign up to this zero interest loan?

 

Good point + interest

 

Lol I feel like I asked for this? Putting in a 30 min video to some very busy people albeit with a pretty enough person by the sounds of it, guaranteeing some interest? Am I the only simpleton who sees something here?

I dont see it as Americanized either.. use a credit card instead of what they are calling the line of credit at 21%? Agree also with the save and pay more into mortgage comments. But thats not what I saw in this video?

Essentially i saw how best to work with the issue of amortization in home loans.. where when I continue to just pay towards a home loan each month, i pay a small portion to principle, a huge portion to interest, especially in the first few years of the loan. But if i took another loan out which is NOT amortized to directly attack the principle of the mortgage in these beginning years, even if the loan has a so called higher percentage, the fact that it is not amortized means that over the long term i am actually paying much less in interest overall throughout the life of that 2nd loan to pay off the mortgage. Provided i am able to pay this 2nd loan down quickly enough with the strategy being that i am parking my full salary into this 2nd loan each pay cycle.

Anyone else seeing that bit too?

 

Definitely not a miracle, just another strategy.

Yes i have always done that by default. But that particular way of using your credit card is not what i took from this video at all.

Nowhere in this strategy does it talk of being cheap? Or are you talking just generally and not specific to the post?

 

How do you take out a loan that is NOT amortised?

(you are even using the american english now after watching that!)

 

I've always found it interesting the commentary regarding paying off a mortgage, especially the suggestion to hunt for a lower rate to save interest. We didn't bother with doing that. Just increased the fortnightly repayments in order to get rid of the bloody thing asap.

It has to be the way my mind works as I've been perplexed when associates state they have saved by remortgaging at a lower rate. They were still paying the same grinding amount per month or fortnight, so their household cash flow didn't change one bit and most households operate on cash flow I reckon.

I strongly doubt when the mortgage is finally discharged, the couple get all the statements and look in wonder at the 'saving" they made in year 3 or whatever. Probably look at their bank account and notice it's still empty and there ain't the $46k in it the bank said they'd save by remortgaging.

My figures are probably out of wack but I recall it was stated by around year 10 of a 25 year mortgage, the bank has already got most of the interest back and from then on the majority of the payments consisted of the principal. If that is the case it's likely, providing you can do it of course, to dump a large lump sum into year 1. Keep buying those lotto tickets and hope.

 

lol I just went by autocorrect!

Okay so sorry for my lack of knowledge on this, but i thought equity loans which are interest only can be classified as non amortised loans and (while not a "loan"), so are credit cards?