How to pay off your mortgage FAST!

hi everyone welcome back to sugar mama TV your financial coach counselor and creator now whether you’re just about to buy your first home already already in your first home or in a home I should say paying off the mortgage is one of the smartest things you could do for yourself and I’ll explain why first of all when you look at the amount of interest you pay each month it’s huge if you didn’t have a mortgage you have so much more cash left in your pocket at the end of the month secondly when you look at all the amount of interest you’ve been paying the bank for the life of the loan it adds up to be a huge amount of money for example say you buy a house for five hundred and fifty thousand dollars and you borrow four hundred and fifty thousand so you had a hundred thousand dollar deposit and the bank puts you on a 30-year mortgage and we assume an average interest rate of around six and a half percent now over the life of that 30-year loan you actually pay over five hundred and seventy three thousand dollars in interest which means that five hundred and fifty thousand dollar home that you bought actually cost you over 1.1 million dollars now you don’t have to be a slave the bank and obviously you’re lining the banks pockets and paying this interestingly yes we have to sometimes borrow money to buy the things that we need but if you have a mortgage and you live in that house I recommend that you try and pay that off as fast as possible the quicker you’re out of personal debt which is debt that’s not deductible doesn’t give you any income benefits or any capital growth other than the growth of the property market which is in a relation to all the other properties anyway that’s not a story hey the property off as fast as possible and then you can start looking at other investments opportunities that exist but you can further your financial freedom so step one keep it simple stupid when you see a bank often they’ll recommend all these bells and whistles overdrafts credit cards and they’ll sort of package it all up you’ll have a offset account a redraw facility all these sort of products that they attach and custom to your home own I personally don’t recommend those I think I say keep it as simple as possible we should have one home loan unless it’s split which is a separate conversation and just try and focus on paying off that debt as fast as possible now you definitely don’t have to be a slave to the bank a couple of simple tips and tricks can really help you path your home line a lot sooner and these are things you can apply immediately so as I always say let’s get straight into it one keep it simple stupid often when we see mortgage brokers and the banks they package these home loans for us that have all these bells and whistles and yes mathematically they are supposed to work in helping us pay down our moments quickly however from my experience in working with clients and debt reduction strategies they don’t work for everyone sometimes they can be incredibly distracting and they create a false sense of security and don’t actually result in you paying off the lot home any sooner I recommend trying to keep it as simple as possible have one home loan and work on paying that off as fast as possible to know your numbers not only should you be regularly checking your internet banking for security you should also know exactly how much your home loan is and also be monitoring the amount of interest you pay each month because when you see that large amount of money that’s costing you just to have a mortgage in place in the first place that will hopefully be your motivation to try and drive down your mortgage and see that that interest repayment getting smaller and smaller each month as you start paying more and more off the home loan so that also gives you a good benchmark to work from so for example say on my home loan my interest repayment is three thousand dollars a month each time I pay some money off my home loan I’m going to go and look at that interested payment and see that my repayments are getting smaller my integer payment getting smaller and smaller each month as I’m servicing more of the principal and actually paying down the principal over time three tidy up your budget go through your budget and your living expenses and try and identify some savings take those savings and then increase your mortgage repayments by that amount so say for example I decide that I’m going to be a bit more conscious when I go grocery shopping not spend as much money on my local grocery store shop I’m going to be just buy what I need and I identify a savings of say 50 dollars per week I would then go and increase my mortgage repayments by 200 dollars per month to make sure I’m using those savings efficiently in paying down my mortgage so really simple strategy identify additional savings from your budget for lump sum repayments now this is a really important strategy that you must use you need to come up with lumps on some amount of money that you can manifest and then use to channel towards your mortgage in paying it down now you might be scratching your head going where am I going to come up with a lump sum or payments but this is where you should use your open up your mind to the universe and use and get creative now here’s just a couple of examples you could use to try and manifest money and you don’t have to use one of them you can use all of them if you want so for example you might decide you want to have a big garage sale and raise some money that way or you might decide to sell a whole pile of stuff on gumtree or eBay you might decide to take a second job on the weekend to earn a bit of extra cash or you might get a tax refund or you may even ask for a pay raise or a bonus at work just try and manifest additional lump sums and when you create and achieve those lump sums throw them straight on to the mortgage so that you pay that mortgage down as fast as possible now if interest rates go down while you’re trying to pay for your home own that’s fantastic that’s an amazing opportunity to try and pay off your home loan even sooner so make sure your payments actually stay what they previously have always been because that will mean that you’re actually servicing more of the principal actually paying it down rather than just service the interest and makes you one step even closer to being debt-free and mortgage free which is such a powerful position to be and financially and opens up a whole other box of tools that we can use to help create more financial wealth and independence for you so very simple trick now if you can use these tips that are recommended and manifest an extra five thousand dollars per annum in lump sum repayments Plus save an additional two hundred dollars per month in your budget using the example of a four hundred and fifty thousand dollar mortgage with an interest rate of six and a half percent on a 30-year term why if you could do that you would save over two hundred and thirty nine thousand dollars interest and you’d be debt-free eleven years earlier than you would have been if you’ve done nothing and I guarantee once you try and do these things Italy it might be hard you might be sort of wondering where you’re going to the next thousand dollars that’s going to come from but if you just stick with the idea stick with a strategy and the universe will serve you and send things you things will happen and send money your way so very very simple do the best you can do don’t be too hard on yourself but just make sure you’re you are actively trying to pay down the pay down and out of your family home or on your first home and don’t be a slave to the bank you don’t need to be you’re perfectly capable of doing this and powerful things are within your reach I promise so why don’t you challenge yourself to paying off your home faster than the bank think you can I really hope you found this book this video motivating and inspiring I believe in you to be able to get debt-free sooner it’s a really powerful thing you can do for yourself and your you will never look back I promise so thank you for watching ciao for now and I will see you in my next video okay bye

Read More: How To Get Out Of Credit Card Debt Fast & Change Your Financial Future

https://creditreportagent.com/debt-free/how-to-pay-off-your-mortgage-fast/?utm_source=rss&utm_medium=rss&utm_campaign=how-to-pay-off-your-mortgage-fast