Mortgage Calculator

Be smarter than the financial institution. Will not shell out off your home finance loan early





Levi talks about why he will not shell out off his home finance loan and asks “Who do you think positive aspects from you shelling out off your home finance loan early?” He runs some distinctive eventualities and compares who makes the most return on their dollars comparing both of those early reimbursement and whole time period eventualities.

Levi’s is not a finacial planner and is not supplying financial commitment guidance. This is an belief channel only and you are inspired to look for specialist finacial setting up guidance. He is extensive in all of the positions detailed in this video.

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37 comments

  1. Very entertaining, creative and informative video. Thanks for taking the time to do this

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  2. To be clear to viewers. this example involves a 2.6% interest rate on a 30 year fixed rate mortgage, which is NOT going to happen in 2017. this example also assumes a consistent 7% return on investments, which is NOT guaranteed EVER.

    So yes, in theory, if you can invest your money into something that gives a consistent return greater than the interest rate on your mortgage, then drawbridge's approach makes sense. However, a guaranteed 7% return DOES NOT EXIST, and mortgage interest rates are currently closer to 4-5% right now.

    If you pay your minimum payment for 22 years and invest the rest of your money into mutual funds/stocks etc, and the market takes a downturn and you lose your job, you literally lose everything.

    If you own your house outright after 22 years and the market takes a downturn and you lose your job, you still have a roof over your head.

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  3. Depends on a property. If it is an investment property, it definitely makes more sense to just fiance another investment property versus closing a loan.

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  4. S&P 500 is 9.8% yearly average over the past 90 years for index stock investors. Max out a Roth IRA ($5500 yearly tax-free) for the remainder of your life and pay off your mortgage as quick as possible. Roth IRA contributing $5500 a year for 30 years with a conservative 9% yearly return on investment ends up being $890,135.93 off an initial $165,000 principle investment. If you keep it up for another 10 year on top of the 30 years that $890,135.93 turns into $2,198,357.07. Forget all this mortgage game BS, long game compound interest is how to become rich.

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  5. Very bad advice honestly. This is only good if you can afford it meaning you are rich or well off. Why? Because if there is a disaster like a hurricane, earthquake, tsunami, etc. you are still stuck with that mortgage and you lose everything meaning all the money you paid including all repairs and down payment money! And no you can't really protect yourself because insurance companies usually charge a ridiculous high amount for the coverage! You can lose your job or have an accident and you can't continue paying! What happens then? You lose everything!!1 thats what! Stupid fucking advice! This only benefits people who are already wealthy! Stop giving people bad advice or at least be realistic and state the negatives!

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  6. Paying off your mortgage first sure as hell beats investing in GIC's or certificates of deposit. Only a total idiot would not pay off their mortgage as soon as possible. Ever think of how much less income tax you'll pay each year if you pay off your mortgage?

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  7. I TOTALLY UNDERSTAND what you are saying; because, I did exactly the same thing. Here is where it went wrong for me. 2007 RECESSION–period. The money that I could've used to totally pay off my mortgage (and was investing with instead) went down the toilet. I would've been SO MUCH BETTER OFF HAD I PAID MY MORTGAGE INSTEAD! I'm a pretty smart guy, and never thought I would lose my capital from investing. In just 4 years prior to the recession, I had increased my capital by over 105%!!! That's right. Then, I cocky! I thought I could do better than this…..I was wrong. I'm ashamed to say that I did consider killing myself :)…just for a bit, before I started the long-slog back to success. Now, the next 10 people to come along may succeed where I failed. My question for them, though, is what if you don't??? What if you fail like I did??? If I had paid my mortgage off when I had the chance, it would've been the smartest thing I ever could've done.

    Finally, I don't see how reducing the amount of interest you pay on your house is a move that is good for the banks. I'm not just talking at a basic "interest" level. When a bank gives you a mortgage of say $400k, that creates a RIDICULOUS amount of capital for the entire banking system. I can't explain the entire process here; however, I would suggest to you that if you asked any knowledgeable banker if it is better for the banks if you pay off your mortgage faster, or slower…..if they're truthful, THEY WILL ALWAYS SAY SLOWER!!! I GUARANTEE IT!!!

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  8. This guy works for the big banks. Probably BOA. You can make more money than the interest you pay on a mortgage if you get rid of it.

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  9. So what happens if the market crashes cus it has and it had happen more then once u lose your job and ur so called investment money gets lost due to the market crashing what then. Would it be better to pay off ur home save and invest the monthly payment and no matter if the intrest rates in the home goes up or down it won't affect u cus u don't owe anything on it. If the market takes a hit u can live off the investments and saving and ride out the crash until things pick up cus they always do but at least for the 5 to 10 years or how ever long it takes for the market to get better u have 1000 mortgage payment that u don't have to worry about paying with a mortgage free home

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  10. I don't buy it. Run it with a 30 year mortgage at 4%. Divide your tsa interest in half. Because that's our current reality. BTW if what your saying is correct then banks should stop giving mortgages and use 100% of that bank credit to open tsa accounts.

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  11. You should do that.. butttt pay off early with what you invest . Make sure your loan is not the monthly payment through the term of loan. But predicated in the principal and what you pay against. It all Varies on what type of loan. Do you due diligence people. Sometimes even if it pencils just depends on how long you want your payments.

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  12. I don't even know where to start. If we all did the MATH, we would never go into debt to begin with!
    The described scenario is FULL of flaws and assumptions.

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  13. You can't leave out the 140K interest paid over 25 years?

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  14. Also $600K in 25 years later wont worth the same like a paid off house today.

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  15. no matter what, debt free is one of the beat feeling of life.

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  16. 7% div year over year, every year? where?

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  17. Yeah this is just ridiculous. If for any reason you need in case and have no money you have an asset you can borrow from and pay less interest!

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  18. Debt/Obligations are fixed and permanent unless/until you pay it off. Investment returns are variable. In order words, debt is a guaranteed obligation while investments carry to guarantees.

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  19. your risk meter is screwed up !

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  20. your stocks can evaporate into zero value in a day

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  21. Don't pay off your mortgage, invest it in the stock market and let the Jews harvest your savings in one day.

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  22. Your scenario ignores that the house is now a rentable investment property with a very high annual rate of return.

    And stop misleading people that 7% Apr over time is doable.

    It isn't.

    That was attainable back before 1999.

    Not now.

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  23. This is an awesome video! I see the benefit of investing early like Alice but I still see that Bob and Charlie could quit their jobs earlier if they wanted to without fear of losing their house. Time is a limited resource and I bet many people will enjoy having more free time 7 years earlier. It’s amazing how much easier it is to be financially stable when you’re not paying a huge rent or mortgage every month. It’s like being a kid again!!! Lol

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  24. All this is great. But the next crash is going to suck balls for everyone that doesn't HOLD their wealth.
    Gold and silver is the only REAL money.

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  25. Buy a house with the minimum amount down for a payment you can reasonably afford. If you have money left over from the down, put it in a safe, relatively liquid account for emergencies. If you can pay your mortgage off early, or refinance to a lower rate, do so. While primary residences are an investment, they should never be placed at risk but taking out seconds or speculating. The average person simply lacks the tools to outsmart the banks

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  26. How do i earn enough to afford a house in london?

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  27. Lmao what in the hell did I just watch 400k loan for 5 years.. 1800 monthly payment ?? Lol kids pay off your mortgage or the interest will equate to triple of the purchase price.

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  28. This is actually sound advise… kinda but not for the reasons presented and it is not dumb advise based on the reasons presented by many posters/commentators below.

    The investing portion in "TFSA" in the US would be putting money into a retirement account such as an IRA or a work 401k. Saving for retirement prior to paying off the house early is very sound advise to do in that order. This is in line with the video… (and also Dave Ramsey.. ie do Baby step 4 prior to baby step 6). The comments below correctly point out that risk seems to be ignored in the presentation, however the assumed 7% annualized return is sound and backed by the work done by Farma etc. of the long haul… like 25 years.

    I differ with the video in that you should pay off your house early, but agree that it should be done after retirement investing is set up and underway. I also agree with the commentators below in that extra money outside of retirement savings should go to paying off the house prior to extra investing.

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  29. i wish to make tat much money when i get my house

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  30. Pretty much some of the worst advice I have ever heard…

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  31. You are so bad in math. Lol…

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  32. nice vid 🙂

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  33. You forgot the part where the investment company bilked (us) the bottom feeders out of their life savings investments. I'd rather not have the mortgage payment and not feel trapped in a shaky job market. Besides a 25 year career has become a rare or reliable lifestyle anymore. Numbers wise (and yours are incorrect) would be great, but only on paper, they're not real world.

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  34. why does the women have to be the smartest

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  35. Less about paying down mortgage, more about how 7% investment (which is a bit of hindsight) is better than 0.5%

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  36. The bank wants you to pay off the loan early? No, they don’t. This might be the worst financial advice I’ve ever heard, and that’s saying something.

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  37. What about if you paid off your mortgage early in let's say 5-10 years and then invested the amount of your mortgage payment for the remaining 15-20 years?

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