Latest / Connor with Honor: AI, Real Estate and Real Life / How to save tens of thousands of dollars on your Mortgage - full explanation without any of those online ai hooks

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How to save tens of thousands of dollars on your Mortgage - full explanation without any of those online ai hooks · Connor with Honor: AI, Real Estate and Real Life

• 0:00
  SPEAKER_00: Yes, you can save tens of thousands in interest and cut gears off your 30-year mortgage just by making extra principal payments.
• 0:07
  SPEAKER_00: In Santa Clarita, California or elsewhere, many homeowners don't realize how powerful this strategy is.
• 0:13
  SPEAKER_00: I'm Connor with Honor, Santa ClaritaOpenhouses.com, and your local AI strategist, and I'm here today to walk you through step by step how you can do it.
• 0:22
  SPEAKER_00: You don't have to register, enter your information, or nothing.
• 0:25
  SPEAKER_00: I'm going to give it all right here.
• 0:27
  SPEAKER_00: Alright, so why extra principal payments work?
• 0:29
  SPEAKER_00: And I'm going to give you the straight answer and explanation.
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  SPEAKER_00: When you make extra payments towards the principal of your mortgage, you reduce the outstanding balance faster.
• 0:37
  SPEAKER_00: That means future interest is calculated on a lower balance.
• 0:41
  SPEAKER_00: So you pay less interest overall and you finish your loan sooner.
• 0:44
  SPEAKER_00: This is especially impactful in the early years of a 30-year loan when most of your payment goes towards the interest.
• 0:52
  SPEAKER_00: Now, for example, imagine in Santa Clarita or Santa Clarita Valley, you own a$400,000 mortgage at 4.5%.
• 0:59
  SPEAKER_00: Don't we wish?
• 1:00
  SPEAKER_00: All right.
• 1:00
  SPEAKER_00: Making one extra payment per year could actually shave off four to six years and save you tens of thousands of dollars in interest.
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  SPEAKER_00: So here's how exactly to do it.
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  SPEAKER_00: Now, this is what's going to happen.
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  SPEAKER_00: There's no gimmicks, like I said, no registration.
• 1:14
  SPEAKER_00: I'm going to give it right to you.
• 1:15
  SPEAKER_00: Check your mortgage details.
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  SPEAKER_00: Find your current balance, interest rate, remaining years, and your lender servicer, especially if it's a California or Los Angeles County-based lender.
• 1:26
  SPEAKER_00: Ask your lender if I send extra money, will you apply it to principal, not future payments?
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  SPEAKER_00: Also ask, are there prepayment penalties under California law or my loan terms?
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  SPEAKER_00: Then what you want to do is decide your extra amount.
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  SPEAKER_00: You can make one extra full payment per year towards principal.
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  SPEAKER_00: You can add a small amount monthly, like$50,$100,$200.
• 1:52
  SPEAKER_00: You can use bi-weekly half payments every two weeks, which results in 13 payments per year.
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  SPEAKER_00: Throw in lump sums, bonuses, tax refunds, etc.
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  SPEAKER_00: When they come, even small extra amounts add up big over 20 to 25 years.
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  SPEAKER_00: Before you know it, you've shaved off a bunch of the time you have left to pay.
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  SPEAKER_00: Now you want to specify apply to principal when you make your payment.
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  SPEAKER_00: Don't let that servicer misapply the funds to interest.
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  SPEAKER_00: Track your results, use an amortization or extra payment calculator.
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  SPEAKER_00: I have one of those as well.
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  SPEAKER_00: Hit me up for that.
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  SPEAKER_00: And you can see how many years you shaved off and what how much interest you've saved.
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  SPEAKER_00: Now, over time, these extra principal payments compound in your favor, especially in a rising rate environment like the California market.
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  SPEAKER_00: The things to watch out for, I'll give you some local and state context.
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  SPEAKER_00: So before you jump in, check your prepayment penalties or clauses in loan documents, especially older California or FHA or VA type loans, how your lender applies extra.
• 2:51
  SPEAKER_00: If they hold extra payments in a suspense account or misapply them, this isn't gonna help you.
• 2:57
  SPEAKER_00: Opportunity cost, if your mortgage rate is quite low, say in current the Santa Clara Valley market, you sometimes get better returns investing money elsewhere, like uh real estate investment trust corporations or stocks or IRS.
• 3:11
  SPEAKER_00: But again, most of us people that are watching this around six or seven, so that's gonna help.
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  SPEAKER_00: Liquidity emergency funds don't exhaust your cash reserves to make one huge extra payment and leave yourself vulnerable either.
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  SPEAKER_00: You want to stay consistent.
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  SPEAKER_00: Power is the ongoing extra payments over time, not a one-time boost, just like losing weight.
• 3:30
  SPEAKER_00: You gotta have more good time eating right instead of bad time.
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  SPEAKER_00: Now, local call to action, local trust signal.
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  SPEAKER_00: Here's what I want you to do.
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  SPEAKER_00: Right now in Santa Clarita Value, grab your mortgage statement or wherever you're watching this, grab your mortgage statement.
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  SPEAKER_00: You want to note your current balance rates and remaining terms.
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  SPEAKER_00: Plug those numbers into a what if an extra payment is made calculator.
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  SPEAKER_00: You can find many of those online.
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  SPEAKER_00: I can also send you one, so hit me up.
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  SPEAKER_00: And you can choose a modest extra amount you're comfortable with.
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  SPEAKER_00: Something you can structure, something that's repeatable.
• 4:01
  SPEAKER_00: Then you want to contact your mortgage servicer and confirm they will apply extra funds directly to principal.
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  SPEAKER_00: How is that done?
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  SPEAKER_00: If you include it in your regular payment, are they gonna understand to take that extra amount and apply it?
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  SPEAKER_00: Or do you have to make a separate payment, separate check, separate mailing address, separate account, separate something?
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  SPEAKER_00: Also, you can shoot me your numbers and I'll run the custom scenario as well for you and give you kind of an idea personally on how that's gonna shave into uh your particular mortgage and how to lessen that.
• 4:30
  SPEAKER_00: Now you don't need to sign up for anything, it's pure math plus consistency.
• 4:34
  SPEAKER_00: Over time, you'll own your home sooner and keep tens of thousands of more dollars in your pocket.
• 4:40
  SPEAKER_00: I'm Connor with honor, Santa Clarita Openhouses.com.
• 4:43
  SPEAKER_00: I also have been the owner and operator of Santa Clarita Artificial Intelligence.com, local business build outs and helping that AI integration.
• 4:52
  SPEAKER_00: I'm here for you.
• 4:53
  SPEAKER_00: I use AI in my business.
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  SPEAKER_00: This isn't AI, this is me, but I always have myself in the loop as the human connection point.
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  SPEAKER_00: If you found this helpful, please share it with your neighbors in Santa Clarita, New Hall Sagas, or anywhere in the Santa Clarita Valley or elsewhere.
• 5:06
  SPEAKER_00: Let's help local homeowners win with their mortgages.
• 5:09
  SPEAKER_00: I'm Connor with Honor.
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  SPEAKER_00: I'll be 10 8 until the next one.
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  SPEAKER_00: Thank you for watching.