Shave 8 Years Off Your Mortgage

Hey, this is Andrew Lam with the Andrew Lamb team at Keller Williams Vaca Valley. And today we're talking about how to turn your 30 year mortgage into a 22 year mortgage. Hey, it's Andrew Lam of the Andrew Lamb team at KW Vatica Valley. Thanks for joining us on our blog today. Today we're talking about how to turn your 30 year mortgage into a 22 year mortgage. Literally take any 8 years of payments off of your plate. Now before we get into that, if you're looking to buy a home in the area, whether that's Solano, Yolo or Napa county, feel free to head to our website. Click the link below and that will give you all access, like instant access to every home on the market by all real estate companies. And you can find exactly what you're looking for before the average home buyer even knows it's on the market. In addition to that, if you're looking to figure out what your home could sell for in today's market, what your home value is, click the free home value link and that will give you a good range from a couple of different places on what your what your home value is. If you're looking for something more specific, feel free to reach out to us and we'd love to do a in person, no obligation home evaluation for you. Now back to our topic on how to shrink your mortgage by eight years. How to turn your 30 year mortgage into a 22 year mortgage. It's actually quite simple. Essentially, if you make one extra payment a year over the course of your loan, you would actually knock off eight years of payments and interest additional interest off of your mortgage. Now I know what you might be saying, that's easy for you to say, Andrew, I don't have extra money to send another check to my mortgage company every year. Well, what you can actually do is something very simple. You can take your current payment, cut it into 12 parts and then just add 1/12 of your payment and send that additional in each month. So you're just paying a little bit more, just a little bit. Small chunk, right? How do you eat an elephant? One bite at a time. This is the way to do it. And you can add one chunk to each monthly payment by the end of the year that actually equates to one additional full payment. Another way to do this is to pay your mortgage bi weekly. What's cool about that? And there's some magic here. You have 52 weeks in the year. So if you're normally sending your payments, then that will be whether it's check or, you know, just coming out of your account, that would be 12 payments, right? So when you chunk down everything into bi weekly because there's 52 weeks, instead of sending 24 payments, it's actually 26. So instead of sending, you know, 24 half payments because of the way it works, just because of the timing of our year and our calendar, you actually get two extra half payments, which equates to one extra payment. So I actually started doing that myself on my home and I saw a lot of interest get knocked off the back end because you can see the full amortization schedule that is your full payments, your normal principal with the interest added in. So you can either send an extra payment towards your principal every year, add 1/12 of your payment to each payment that you make, or start paying your mortgage bi weekly and get two extra half payments in for a full extra payment. And that knocks off years of added interest off of your mortgage. For more tips and tricks on how to save time, save money, and build wealth through real estate, stay tuned. Click subscribe if you're on YouTube or like our page and follow us on Facebook and Instagram. We look forward to seeing you again soon and helping you build wealth through real estate.