Paying off your mortgage sooner can change everything. David Bach explains that one of the most common financial mistakes is waiting too long to pay off a mortgage. He says the decision starts with your interest rate. If your mortgage rate is low, it may make sense to invest extra money elsewhere. But with higher rates, paying down the mortgage faster becomes an easy decision. He points out that even one extra payment per year on a thirty year mortgage can shorten the loan by several years. Would you prioritise paying off your mortgage or investing extra money right now? #podcast #podcast #renting #realestate #investing

If you make one extra payment a year on a mortgage you'll take a 30 year mortgage and you'll pay it off depends on the rate One of the things couples get wrong is waiting too long to pay off the mortgage What do you mean by that? Should I pay off my mortgage or should I go invest in the stock market? What's the rate on your mortgage? That's the first question Then you'd say well David, I got a mortgage five years ago and it's two and a half percent and I'd say okay Well, that's a really low rate, Stephen. You know what you can put the money in a money market get account right now and make more than that So maybe you don't need rush to pay it off as fast as possible But if you've got a mortgage that six or seven or eight percent It's a no-brainer if you make one extra payment a year on a mortgage You'll take a 30 year mortgage and you'll pay it off depends on the rate Five six seven years sooner. It's actually really simple. Here's ways to do it today Even he calculates just run the question you put in your mortgage you tell Gemini Here's the size of my mortgage. Here's my mortgage payment If I make an extra payment a year how many how many years faster will I pay it off and how much will I say? And you'll see the number when people see the number in black and white I've got to do that now. Here's the key Make that payment automatic Easiest way you make your payment automatic is either make one extra payment at the end of the year Or Take your mortgage payment and increase it by 10% so if your mortgage payments a thousand dollars Make an $1,100 a month mortgage payment and tell the bank you want to add that to the principal When people do that, they need to make sure though that money is actually paying down the principal Another way to do that is to buy a weekly mortgage payment plan Where you take your mortgage you split it half you pay half every two weeks that'll also pay your mortgage off early