Hi. In this video I'm going to show you how to get your mortgage paid off early
and save tens of thousands of dollars so you have a nest egg for your retirement
or just a lot of extra money and I'm going to show you how to do this with
the help of the Federal Government. My name is Lance Mohr and I'm a real
estate agent in Tampa Bay Florida and the reason why I'm doing this video is
because over the last 10 years I've seen more people have less equity in their
homes and I'm getting sick of banks and so-called professionals taking advantage
of people just because they want to make money and not doing the right thing in
helping people out the one thing I'm going to ask from you is if you know
anybody who owns a home; family members, friends, co-workers - please share this
video with them don't assume they know when I'm going to go over in this video
and are doing it over the past 20 years is a mortgage banker in a realtor
virtually no one knows about this and even fewer people do it so you can help
a lot of people by sharing this video with them alright everyone so before we
get in and go over my real estate equity blueprint I want to go over something I
think is very important to everybody watching this every homeowner a future
homeowner and that is why so many people do not have a lot of equity in their
home or money in their home when they get older or even now when they're
younger and a lot of it has to do is understanding the statistics so
statistically the average homeowner purchases a home every eight years they
refinance their home every five years so what most people do and this is from me
dealing with thousands of homebuyers both as a lender and a real estate agent
they buy a home they put it on a 30-year mortgage they live in it for five years
statistically then they refinance they put it back
thirty-year mortgage they live in it three years then they buy it they sell
it then they buy another home they put that one on a 30-year mortgage they live
in it five years they refinance it back to a 30-year mortgage then the cycle
continues now it may not be like this statistically it may not be for for
everybody eight and five years but these are the numbers when I was in lending I
probably refused about 25 or didn't do 25 to 33 percent of all my refinances
and the reason is because it just did not behoove two people to do that I
would have people come in to me and they would want to refinance because they're
saving money or you know maybe the interest rate lowered or whatever and
they refinanced and they've been paying on their mortgage for eight years
and they want to refinance it back to a 30-year mortgage I'm like why would you
do that what what are you going to do just throw those 96 or hundred payments
out the windows so I did I did a refinance video I'll put the link above
and if you're thinking about refinancing or want to know more about this you
could watch it but if you look at banks out there they really understand this
they know how mortgages work they send letters in the mail all the time
refinance your home no cost zero closing costs to refinance they do this all the
time because they just want to keep you like the gerbil on the treadmill going
around and around and around and unfortunately most loan officers aren't
given people good advice either one of two reasons they either are just doing
it because they want to make a buck or they don't really understand how a basic
mortgage works now sure the bank they don't care about us they don't care
about any of us they just want to make a dollar and you can expect out from them
so if you're not really sure check out that video I'll put it above now let's
get into what I consider one of my favorite parts of homeownership and
that's tax write-offs so I love tax write-offs I always have when I bought
my home at 23 years old the first thing I did was went to an accountant now one
get the scoop on what was going on and being self-employed I have to know it so
I want to just state right up front consult an accountant your CPA I'm not
an accountant I'm not a CPA I'm not giving you tax advice here this is just
common sense we're going to run through some stuff right here that a lot of you
and most of you may already know but we're going to put a different spin on
things a little bit so you could save a lot of money so let's start often we're
going to use the loan amount of $210,000 an interest rate of 4.25 percent with
the principal and interest being one thousand thirty three dollars and seven
cents now I understand your loan amount your interest rate your property taxes
you pay even your you know even the you know what tax bracket you're in may be
all different and that's okay just go with me on this so based on these
figures the interest paid for the first year is eight thousand eight hundred and
fifty six dollars that's the interest majority's interest it's not principal
the property taxes paid are three thousand four hundred and sixty three
dollars so this is property taxes right here so you have a total tax write-offs
on the interest paid on the loan of eighty eight fifty six and then the
property taxes paid in the property of 3463 your total is twelve thousand three
hundred and nineteen dollars now that's your tax write-off that's what you would
be right enough so if we looked at this and we said okay well you're in the
twenty five percent tax bracket which is a pretty common tax bracket out there
it's a federal tax bracket so I'm talking so you're right offs would be
it's basically like the government if you didn't do anything with the
exemptions it's like they would give you a check at the end of the year for three
thousand and eighty dollars so if you broke that down into a monthly savings
it would be two hundred and fifty $6.65 it's called twelve payments a year so
it's a substantial savings so what's going to let's go over and we're going
to go over the real estate boyfriend so of course the goal is to
pay your home off in full early saving thousands of dollars and I'm going to go
through this pretty quick I'm not going to read everything - yeah I'm going to
tell you when buying home pick in your real estate agent picking your own
officer is critical is critical to the process a lot of times people you know
always look at price price price but it's not the price it's the cost people
make money because cost not price so let's go through this I'm going to show
you how you pretty much save around ten thousand to a hundred thousand dollars
and put it in your pocket not the bank's pocket and I'm going to be going quick
but I want to make sure you understand all this so let's just go over a couple
simple facts for you first we're borrowing two hundred and ten thousand
dollars at four and a quarter percent so basically doing that you're going to pay
the bank a hundred and sixty one thousand nine hundred and six dollars in
interest so in other words you're borrowing two hundred ten thousand
you're going to pay them three hundred and seventy one thousand nine hundred
and six dollars Wow after paying your mortgage for ten years making a hundred
and twenty payments you're going to still owe almost 80% of what you
borrowed the total amount that you'll pay in ten years is almost a hundred and
twenty four thousand dollars out of that one hundred and twenty four thousand
dollars only thirteen only forty three thousand one hundred and sixty nine
dollars has gone to reduce your principal the rest went to pay your
interest so after ten years of making payments of a hundred twenty three
thousand nine hundred and sixty eight dollars only twenty percent or so is
going to your principal to pay off pay off your mortgage after fifteen years
you're still owe about sixty five percent of what you borrowed
alright so it's good to really understand those numbers so let's start
off and just get into the basis basic mortgage 210
and four and a quarter percent you're basically not saving any money this is
what most people do right here now it used to be a little bit more popular
than it is now but a lot of times people say hey let's buy down the interest rate
let's instead of four and a quarter let's buy it down to 4% and sometimes
builders may even offer this and that's great well doing this you're going to
save ten thousand nine hundred and eighty dollars and that's good because
it's going to take your payment down to instead of a 1033 it's going to take it
down to one thousand and two but let's say you did the buy down to four percent
and you took the savings of thirty dollars and fifty cents and then you
just added that toward your principal every month so instead of paying one
thousand to two dollars you pay one thousand and thirty three like you would
do it four and a quarter percent would you do that that option right there
saves you over thirty years twenty thousand five hundred and eleven dollars
so you can see that's a pretty huge savings but nothing compared to what
we're going to get into so what we want to do is let's go over the real estate
equity blueprint there's three options that I'm going to show you the first
right here is called a bi-weekly payment now basically what a bi-weekly payment
is is it's making a payment every two weeks so you're basically going to take
your mortgage and divide it in half and then you're going to make a payment
every two weeks so essentially you're making thirteen payments a year instead
of twelve most people could do this and it's and it's really going to help it's
basically so if you make five hundred and sixteen dollars and fifty force
entertainment every two weeks for three hundred and nine payments so you're not
going to be making 360 you'd do it for three hundred nine payments you'll be
saving twenty six thousand four hundred fifty five dollars by doing that two
really big savings now let's over here now if you work right here
remember when we were right here and I said okay your monthly savings is two
hundred fifty six dollars and sixty-five cents for 12 well let's go a little bit
more with this over thirteen payments this is what your savings is two hundred
thirty six dollars and ninety two cents but if you made twenty six payments per
year all right well your savings would be a hundred and
eighteen dollars I say savings the government's basically giving you a
hundred and eighteen dollars twenty six times a year so what say you took that
hundred and eighteen dollars and you put it back into your bi-weekly payment so
you take the 516 out 118 it's 634 so now you pay $634 fifty four cents every two
weeks now keep in mind this 118 this was like many Uncle Sam's given you so why
not do it now also I'm just talking about if you own the home as your
primary residence if you're an investor I'm not even getting into the
depreciation what 1031 exchanges are I mean that's like game on when you're an
investor that's why the goldstone investment properties if you can or if
you want to but we're just talking about a primary residence here of course this
will work the same way whether you own a 15-year more but if you have a 15 year
mortgage whether it's it's a rental property if it's a rental property
you'll even have more savings so you're going to if you do this you're basically
you're now going to be done paying off your mortgage effort after only 220
months instead of 360 so you're basically eliminating by doing this what
the government's given you keep in mind you're doing the by bi-weekly but the
118 the government's like giving you that money why not use it for something
instead of put it in your savings account or spending it so you're going
to be debt free on your mortgage in under nine
teen years instead of 30 you'll be saving almost $70,000 in interest in in
payments now this is good this is strong but most people in calculating and
looking at tons and tons of people's financials over the years could if they
really wanted to cut out maybe some restaurants every week cut out some
Starbucks every week save a little bit more money so instead of let's see
instead of doing 118 dollars which the government's basically giving you
assuming in your tax bracket your CPA can forgive this let's do $300 okay this
is where it really gets interested so instead of 516 dollars every two weeks
you pay an extra three hundred dollars now you're going to have to make a
sacrifice doing this no question but it's going to really pay off long term
okay so your bi-weekly payment is 816 dollars again this is only principal and
interest but doing this you're going to eliminate 206 months of payments and
you're going to be debt free and under 13 years instead of 30 in saving almost
hundred thousand dollars saving ninety nine thousand two hundred and thirty
five dollars in interest in payment that's insane so let's go over an
overview sort of a recap again the main thing a lot of people are doing is the
first option is just a standard mortgage thirty-year mortgage you're not saving
anything you do a quarter percent buy down in this case you're saving a little
over ten thousand dollars if you do the buy down and reinvest that money the
$30.50 you're going to shave off a little time you're going to save you're
going to save you know twenty thousand dollars if you do a biweekly mortgage
you're basically going to save twenty six thousand dollars but if you do a
biweekly and just give back in this case what the government's given you one
hundred and eighteen dollars you're going to save almost seventy thousand
dollars and if you could just add instead of a hundred
eighteen dollars just add a little bit more of your own money cut some expenses
somewhere and add three hundred dollars in an extra payment you're going to save
almost a hundred thousand dollars in savings so instead of pain you know
three hundred and seventy one thousand dollars over thirty years you're going
to be only going to pay two hundred and seventy two about thousand dollars so
instead of paying total interest of one hundred and sixty one thousand you're
basically sent into sixty two thousand it's insane and your payment off in
thirteen years or nineteen years and this is hopefully hopefully you know you
could do one of these I know if you're in a fixed income bracket then it does
get a little trickier but you could still do it talk to your accountant and
tell them you know and have them talk to you about different options because it
is an option now I hope you enjoyed this educational video and found it
enlightening and please don't forget to share this video with anybody you know
that owns a home if I could help you in the Tampa Bay area find a pre-owned home
a new home or sell a home please contact me I'm a knowledgeable
experienced an aggressive realtor that's always going to look out for your best
interest thank you for watching this video thank
you for watching my youtube channel and if you do like this video please comment
below and let me know your thoughts have a wonderful day
you