How to Pay-Off a Mortgage Early

Series Summary

Real estate is a legal term that encompasses land along with anything permanently affixed to the land, such as buildings, specifically property that is stationary, or fixed in location. With the development of private property ownership, real estate has become a major area of business. Purchasing real estate requires a significant investment, and each parcel of land has unique characteristics, so the real estate industry has evolved into several distinct fields. Get real estate tips for buying investment properties, homes and more in this free video series featuring real estate agent Richard Blake. Blake gives instruction on how to pay-off a mortgage early, how to do short sales, how to flip a house with a $5000 budget, how to buy foreclosed homes, how to find foreclosed homes, how to make a for sale flier, how to refinance a mortgage, how to buy a foreclosed house, how to short sale real estate, how to buy and rehab an investment property, how to buy your first house and how to stage a home for quick sale.

Video Transcript

"Paying off your mortgage early can save you a substantial amount of money in the long run. I'm Richard with the Richard Blake Homes Team in Clearwater, Florida and I'm here to explain how you can pay off a mortgage early. One of the most obvious and easiest ways to pay off your mortgage early is to simply make more payments. As simplistic as fifty dollars a month can make a huge difference. What I would recommend is making one extra payment per year. So for example if you have a twelve hundred dollar mortgage payment monthly you're going to divide that by twelve and make the additional payment on a monthly basis meaning whatever your current monthly mortgage is, just add a hundred dollars to that. Tell your lender that you want that extra hundred dollars to go towards the principle and this is going to bring down your loan substantially over time. Let me give you an example. With a hundred thousand dollar loan at a 6% interest rate per year with a thirty year, thirty year loan term period, if you we're to simply pay an additional fifty dollars per month towards your principle on that loan, you're going to shave off six years of that loan term as well as save nearly twenty five thousand dollars over time. So it's a substantial amount of savings. The more you put towards your principle , obviously the more you're going to save over, over time. I hope that's a good insight to how you can pay off your mortgage early and substantial savings for you in the long run. I'm Richard Blake, you guys have a good evening."