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Cliff Notes: HOW TO REDUCE YOUR MORTGAGE BY 7 YEARS · Earn Your Leisure

• 0:00
  Speaker 1: An illegal alien from Guatemala charged with raping a child
• 0:03
  Speaker 1: in Massachusetts. An MS thirteen gang member from Al Salvador
• 0:07
  Speaker 1: accused of murdering a Texas man of Venezuelan charged with
• 0:11
  Speaker 1: filming and selling child pornography in Michigan. These are just
• 0:15
  Speaker 1: some of the heinous migrant criminals caught because of President
• 0:19
  Speaker 1: Donald J. Trump's leadership. I'm Christy nom the United States
• 0:23
  Speaker 1: Secretary of Homeland Security. Under President Trump, attempted illegal border
• 0:28
  Speaker 1: crossings are at the lowest levels ever recorded, and over
• 0:31
  Speaker 1: one hundred thousand illegal aliens have been arrested. If you
• 0:35
  Speaker 1: are here illegally, your next you will be fined nearly
• 0:39
  Speaker 1: one thousand dollars a day, imprisoned, and deported. You will
• 0:43
  Speaker 1: never return. But if you register using our CBP home
• 0:46
  Speaker 1: app and leave now, you could be allowed to return legally.
• 0:50
  Speaker 1: Do what's right. Leave now. Under President Trump, America's laws,
• 0:55
  Speaker 1: border and families will be protected.
• 0:57
  Speaker 2: Sponsored by the United States Department of Homeland Security.
• 1:00
  Speaker 3: It's a crazy time that we're living in. Everybody knows
• 1:03
  Speaker 3: obviously we in. You know the age of Corona, and
• 1:06
  Speaker 3: I remember texting you like when when Corona first hit.
• 1:09
  Speaker 3: I'm like, yo, that's when the stock market was crashing.
• 1:12
  Speaker 3: And I'm like, there's real estate market about the crash,
• 1:13
  Speaker 3: and he was like, nah, it's not. And I'm like,
• 1:16
  Speaker 3: how people were losing their jobs, stock markets crashing, people
• 1:20
  Speaker 3: can't go to work, like all the writings on the
• 1:23
  Speaker 3: wall for another two thousand and eight to happen, and
• 1:26
  Speaker 3: he was like, nah, commercial real estate might be in trouble,
• 1:28
  Speaker 3: but residential real estate, I'm like, all right, we'll see.
• 1:32
  Speaker 3: And then to this day, it hasn't crashed. It's actually
• 1:35
  Speaker 3: going up. In most most places in America. The price
• 1:38
  Speaker 3: the home prices have actually going up. It's a shortage
• 1:40
  Speaker 3: of our inventory on the marketplace. So where we're at
• 1:43
  Speaker 3: right now as far as the state of real estate
• 1:47
  Speaker 3: in the United States of America.
• 1:49
  Speaker 4: The market is on fire for residential you know. And
• 1:52
  Speaker 4: I told you this back in March. I said, nah, bro,
• 1:54
  Speaker 4: it's not going to happen because with people and everybody
• 1:57
  Speaker 4: was kind of saying the same thing, like, yo, two
• 1:59
  Speaker 4: thousand and eight is coming back. Wait, don't buy, don't
• 2:01
  Speaker 4: buy weight, And I said two thousand and eight was different.
• 2:04
  Speaker 4: That was a credit crisis, right, This is a health crisis.
• 2:08
  Speaker 4: Credit crisis means that banks, Wall streeters, everybody, homeowners, you know, investors,
• 2:14
  Speaker 4: everybody was greedy, you know, appraisers, everybody. Right, So when
• 2:20
  Speaker 4: the market crashed, the government was reluctant on trying to
• 2:23
  Speaker 4: save everybody. They didn't want to bail out everybody, but
• 2:27
  Speaker 4: they had no choice but to bail out the big names. Right.
• 2:30
  Speaker 4: So with this one, I said, now, this is health
• 2:34
  Speaker 4: This has nothing to do with nobody. This is nobody's fault.
• 2:36
  Speaker 4: And if you think about it, if you look at
• 2:38
  Speaker 4: the real estate market going into twenty twenty, it was
• 2:40
  Speaker 4: already on fire. It was due for a correction at
• 2:43
  Speaker 4: some point, because what goes up must have come down, right.
• 2:48
  Speaker 4: But I said, nah, this is not going to crash.
• 2:50
  Speaker 4: There's no way, because the government is going to have
• 2:52
  Speaker 4: to bail out everybody now, right from the big businesses
• 2:57
  Speaker 4: to the everyday person. When you told me that it's
• 3:01
  Speaker 4: going to crash, that's what was in my mind because
• 3:03
  Speaker 4: I knew, especially with the election year, they couldn't just
• 3:07
  Speaker 4: let all these people die, people lose their homes. There's
• 3:10
  Speaker 4: no way. And as you see, all these stimulus packages
• 3:13
  Speaker 4: came out, everybody getting their ppe money and everything.
• 3:18
  Speaker 5: It was recklessly hopefully they wasn't reckless.
• 3:20
  Speaker 4: Hopefully they wasn't reckless, and hopefully they did the right thing.
• 3:22
  Speaker 4: But you know, you have unemployment benefits, people are getting
• 3:25
  Speaker 4: them with ease, with no problem. So you know, you
• 3:28
  Speaker 4: got to give the administration credit for what they tried
• 3:32
  Speaker 4: to do to help as many people as possible. And
• 3:35
  Speaker 4: that's why I just did to feel like the market
• 3:37
  Speaker 4: was going to crash. But residential real estate is on
• 3:40
  Speaker 4: fire right now all over the country. There's thirty forty
• 3:44
  Speaker 4: offers on one house, you know, So if you're a
• 3:46
  Speaker 4: seller right now, if you're thinking about selling your home
• 3:50
  Speaker 4: to upgrade or downsize, this is the time for the
• 3:53
  Speaker 4: sellers right now, because they're going to get twenty thirty
• 3:57
  Speaker 4: percent above asking price on markets right now because it's
• 4:01
  Speaker 4: just too hot right now. It's too many buyers out there,
• 4:04
  Speaker 4: and with these low interest rates, you know, or rates
• 4:06
  Speaker 4: being in the mid twos to low threes, depending on
• 4:10
  Speaker 4: your circumstance, Like everybody wants to buy a house because
• 4:13
  Speaker 4: money is cheap now right so it's easy to the
• 4:17
  Speaker 4: person who couldn't afford the half a million dollar house
• 4:19
  Speaker 4: last year when rates were three and a half four percent.
• 4:22
  Speaker 4: Now it's two and a half.
• 4:23
  Speaker 3: Can can you explain like that, like, because the average
• 4:25
  Speaker 3: person that maybe never brought a home might not fully
• 4:27
  Speaker 3: appreciate because they say three and a half two and
• 4:30
  Speaker 3: a half, it's only one percent, that's not that big
• 4:33
  Speaker 3: of a deal. But because they look at it like
• 4:35
  Speaker 3: it's stocks, Like it's like if you earn one percent,
• 4:38
  Speaker 3: you know what I'm saying, or just regular life, one
• 4:39
  Speaker 3: percent doesn't move the needle. But in your world of mortgages,
• 4:43
  Speaker 3: one percent is huge, right, So if you kind of
• 4:44
  Speaker 3: put that in perspective out, yeah.
• 4:46
  Speaker 4: I mean, look, one percent depending on your loan amount, right,
• 4:48
  Speaker 4: that can be three four five hundred dollars a month.
• 4:51
  Speaker 4: That could be six thousand, eight thousand, ten thousand a year,
• 4:54
  Speaker 4: depending on the size of your loan.
• 4:57
  Speaker 2: Right.
• 4:57
  Speaker 4: So the big of the loan, the lower the rate,
• 5:01
  Speaker 4: the cheap of the payment.
• 5:03
  Speaker 2: Right.
• 5:03
  Speaker 4: So someone again who couldn't afford the five hundred thousand
• 5:06
  Speaker 4: dollars home or get pre approved for a five hundred
• 5:08
  Speaker 4: thousand dollar home a year ago because the rate was
• 5:11
  Speaker 4: probably three and a half to four percent, now they're
• 5:14
  Speaker 4: able to because now that brings their payment down and
• 5:16
  Speaker 4: they're able to get approved for now that higher amount,
• 5:19
  Speaker 4: so one percent is huge in the real estate. In
• 5:23
  Speaker 4: the mortgage world, interest that you're going to pay over
• 5:26
  Speaker 4: the life of the moment is also very important too,
• 5:29
  Speaker 4: because if you're looking at any house that you buy,
• 5:32
  Speaker 4: let's face it, right the way the mortgage in the
• 5:34
  Speaker 4: banking system is set up, it's you know you're going
• 5:37
  Speaker 4: to pay interest three times more earners.
• 5:40
  Speaker 2: What's up?
• 5:41
  Speaker 5: You ever walk into a small business and everything just
• 5:43
  Speaker 5: works like the checkout is fast, the receipts are digital,
• 5:47
  Speaker 5: tipping is a breeze, and you're out the door before
• 5:50
  Speaker 5: the line even builds odds are they're using Square. We
• 5:54
  Speaker 5: love supporting businesses that run on Square because it just
• 5:57
  Speaker 5: feels seamless. Whether it's a local coffee shop, a vendor
• 6:00
  Speaker 5: at a pop up market, or even one of our
• 6:03
  Speaker 5: merch partners. Square makes it easy for them to take payments,
• 6:06
  Speaker 5: manage inventory, and run their business with confidence, all from
• 6:10
  Speaker 5: one simple system. If you're a business owner or even
• 6:14
  Speaker 5: just thinking about launching something soon, Square is hands down
• 6:17
  Speaker 5: one of the best tools out there to help you start,
• 6:20
  Speaker 5: run and grow. It's not just about payments, it's about
• 6:24
  Speaker 5: giving you time back so you can focus on what
• 6:26
  Speaker 5: matters most ready. To see how Square can transform your business,
• 6:30
  Speaker 5: visit Square dot com backslash go backslash eyl to learn
• 6:35
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• 6:40
  Speaker 5: don't hesitate. Let's Square handle the back end so you
• 6:43
  Speaker 5: can keep pushing your vision forward. This episode is brought
• 6:49
  Speaker 5: to you by P and C Bank. A lot of
• 6:51
  Speaker 5: people think podcasts about work are boring, and sure they
• 6:55
  Speaker 5: definitely can be, but understanding a professional's routine shows us
• 6:59
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• 7:02
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• 7:06
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• 7:09
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• 7:12
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• 7:15
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• 7:26
  Speaker 5: National Association Member FDIC.
• 7:30
  Speaker 1: An illegal alien from Guatemala charged with raping a child
• 7:34
  Speaker 1: in Massachusetts. An MS thirteen gang member from Al Salvador
• 7:38
  Speaker 1: accused of murdering a Texas man of Venezuelan charged with
• 7:42
  Speaker 1: filming and selling child pornography in Michigan. These are just
• 7:46
  Speaker 1: some of the heinous migrant criminals caught because of President
• 7:50
  Speaker 1: Donald J. Trump's leadership. I'm Christy nom the United States
• 7:54
  Speaker 1: Secretary of Homeland Security. Under President Trump, attempted illegal border
• 7:58
  Speaker 1: crossings are at the lowest levels ever recorded, and over
• 8:02
  Speaker 1: one hundred thousand illegal aliens have been arrested. If you
• 8:05
  Speaker 1: were here illegally, your next you will be fine nearly
• 8:09
  Speaker 1: one thousand dollars a day, imprisoned and deported, you will
• 8:13
  Speaker 1: never return. But if you register using our CBP home
• 8:17
  Speaker 1: app and leave now, you could be allowed to return legally.
• 8:21
  Speaker 1: Do what's right. Leave now. Under President Trump, America's laws,
• 8:26
  Speaker 1: border and families will be protected.
• 8:28
  Speaker 2: Sponsored by the United States Department of Homeland Security.
• 8:30
  Speaker 4: Put him with the houses actually work. But if you're
• 8:33
  Speaker 4: getting a cheaper interest rate, that softens the blow a
• 8:36
  Speaker 4: little bit, and now you can focus on your debt strategy,
• 8:40
  Speaker 4: which is repaying back your debt and trying to beat
• 8:43
  Speaker 4: that interest trap. You know what I'm saying, and you
• 8:45
  Speaker 4: know little things you can do to do that. You
• 8:47
  Speaker 4: can make one extra payment a year, and you can
• 8:49
  Speaker 4: pay off your loan in twenty two and a half years.
• 8:50
  Speaker 4: If you have a thirty year mortgage. You know what
• 8:52
  Speaker 4: I tell folks all the time, take your income taxes
• 8:56
  Speaker 4: refunds right and apply that every single year to your
• 8:59
  Speaker 4: partical balance. That could bring down your debt. You can
• 9:02
  Speaker 4: do as little as one hundred dollars a month to
• 9:05
  Speaker 4: your principal balance and you'll be surprised how much interest
• 9:08
  Speaker 4: you'll save on your mortgage, especially if you plan on
• 9:11
  Speaker 4: living in the house the long term, the full term
• 9:14
  Speaker 4: of thirty years. You don't want to just make your
• 9:17
  Speaker 4: regular payment because you're gonna pay you know, on a
• 9:19
  Speaker 4: three hundred, four hundred thousand dollars home, you may pay
• 9:21
  Speaker 4: back eight hundred thousand.
• 9:22
  Speaker 3: Now that was a gym, what you just said. And
• 9:25
  Speaker 3: I learned that in business. I don't want that to
• 9:27
  Speaker 3: go on people's head. When I first got into into
• 9:29
  Speaker 3: the industry working in finance, I learned that like one
• 9:34
  Speaker 3: extra payment a year on your mortgage cut seven years.
• 9:38
  Speaker 4: Off of your mortgage absolutely, or eight seven to eighty
• 9:42
  Speaker 4: twenty two and a half years.
• 9:43
  Speaker 3: Yeah, So that's that's huge if you really think about it,
• 9:46
  Speaker 3: it's like one extra payment a year absolutely can really
• 9:51
  Speaker 3: take almost a decade off like.
• 9:54
  Speaker 4: Basically, and it has to be towards your principal balance only.
• 9:58
  Speaker 4: So if you're making a payment, you can't give the
• 10:00
  Speaker 4: bank money because they're automatically going to apply it to interest, right,
• 10:03
  Speaker 4: because you have to direct them where you want that
• 10:06
  Speaker 4: money to go.
• 10:07
  Speaker 2: How does that even look?
• 10:07
  Speaker 5: So if my mortgage is three thousand, I gotta pay
• 10:10
  Speaker 5: six thousand if I'm doing it.
• 10:12
  Speaker 4: Yeah, so if your mortgage is three, you can pay
• 10:14
  Speaker 4: six and you can tell them the difference to go
• 10:16
  Speaker 4: to principal balance only. Some online everything's online right now
• 10:21
  Speaker 4: with all the banks, right so you can go pay
• 10:23
  Speaker 4: your mortgage and you can specify their two principal balance only.
• 10:26
  Speaker 4: You can write a check, put on a check two
• 10:28
  Speaker 4: principal balance only. So, depending on how you pay your mortgage,
• 10:32
  Speaker 4: do that. And if it's not an online option to
• 10:34
  Speaker 4: pay extra, call the service and lender that you're paying
• 10:37
  Speaker 4: your mortgage too, and figure out a way to accomplish
• 10:40
  Speaker 4: that goal. Maybe they can just do automatic draft from
• 10:43
  Speaker 4: your account something like that and set it up to
• 10:45
  Speaker 4: where you can make that extra payment. You know, and
• 10:48
  Speaker 4: you'll be surprised if you make two payments extra year.
• 10:50
  Speaker 5: That's what in my mind, I'm thinking that if I
• 10:52
  Speaker 5: make two extra payments now that's seven ers of the
• 10:54
  Speaker 5: fourteen I'm really out of fifteen year mortgage basically.
• 10:57
  Speaker 4: And I'm glad you brought up fifteen year mortgages, right,
• 10:59
  Speaker 4: especially right now, folks want to go into fifteen year loans.
• 11:02
  Speaker 4: And look, the fifteen year rate, the lowest I've seen
• 11:05
  Speaker 4: it since we've been in COVID was around two percent,
• 11:08
  Speaker 4: which is phenomenal. Right, that's incredible. But what I try
• 11:12
  Speaker 4: to tell people is maybe not going to that fifteen
• 11:16
  Speaker 4: year right now, because life happens. Right, you're committing yourself
• 11:20
  Speaker 4: to a much higher payment, and what if you know,
• 11:23
  Speaker 4: COVID twenty one comes God forbid and it's worse, worse
• 11:27
  Speaker 4: strained than this. Now you're committing yourself to that higher
• 11:30
  Speaker 4: payment just to try to pay it all early, when
• 11:33
  Speaker 4: you could have went to a thirty year, had a
• 11:35
  Speaker 4: cheaper payment, and just manage your principal balance yourself. That way,
• 11:39
  Speaker 4: you're not committed to that fifteen year term or that
• 11:43
  Speaker 4: twenty year term. You stay with the cheapest possible payment,
• 11:46
  Speaker 4: but still you're paying down your debt, you know, so,
• 11:51
  Speaker 4: and I'm not against twenty year mortgages. I think for
• 11:54
  Speaker 4: the right people it works, right people who have substantial
• 11:57
  Speaker 4: income and they can really afford the payment. But most
• 12:00
  Speaker 4: people are trying to pay off their long fast, which
• 12:04
  Speaker 4: I get, but they're now cash strap, right, they're becoming
• 12:08
  Speaker 4: house rich and cash poor because they're making their payment
• 12:12
  Speaker 4: so much higher because they're just focusing on I just
• 12:14
  Speaker 4: want to get rid of it, which again I understand,
• 12:16
  Speaker 4: but you got to be a little bit smarter right
• 12:18
  Speaker 4: now because anything could happen. As we've seen. We woke
• 12:21
  Speaker 4: up in twenty twenty Kobe dead with God bless you know.
• 12:24
  Speaker 4: Then COVID came. Like this year has been crazy, you
• 12:28
  Speaker 4: know what I'm saying. So like if this doesn't teach
• 12:29
  Speaker 4: anybody anything, you got to have cash flow right now.
• 12:32
  Speaker 4: You got to have liquidity because anything can happen. So
• 12:36
  Speaker 4: that's why I just try to tell home own, future
• 12:38
  Speaker 4: homeowners and current homeowners who are rEFInd intent if you
• 12:42
  Speaker 4: don't have to go to the fifteen year, just stay
• 12:44
  Speaker 4: with the twenty or thirty years, so that way you
• 12:47
  Speaker 4: can have a little bit more cash flow.
• 12:51
  Speaker 6: My graduates from my school being forced bad drop drop
• 12:56
  Speaker 6: might drop drop drop, an.
• 13:10
  Speaker 1: Illegal alien from Guatemala charged with raping a child in Massachusetts.
• 13:14
  Speaker 1: An MS thirteen gang member from Al Salvador accused of
• 13:18
  Speaker 1: murdering a Texas man of Venezuelan charged with filming and
• 13:22
  Speaker 1: selling child pornography in Michigan. These are just some of
• 13:26
  Speaker 1: the heinous migrant criminals caught because of President Donald J.
• 13:30
  Speaker 1: Trump's leadership. I'm Christy Noman, the United States Secretary of
• 13:33
  Speaker 1: Homeland Security. Under President Trump, attempted illegal border crossings are
• 13:38
  Speaker 1: at the lowest levels ever recorded, and over one hundred
• 13:42
  Speaker 1: thousand illegal aliens have been arrested. If you are here illegally,
• 13:46
  Speaker 1: your next you will be fined nearly one thousand dollars
• 13:49
  Speaker 1: a day, imprisoned, and deported. You will never return. But
• 13:54
  Speaker 1: if you register using our CBP home app and leave now,
• 13:58
  Speaker 1: you could be allowed to return legally. Do what's right.
• 14:01
  Speaker 1: Leave now. Under President Trump, America's laws, border and families
• 14:06
  Speaker 1: will be protected.
• 14:07
  Speaker 2: Sponsored by the United States Department of Homeland Security,