House Paid Off by 40 [Mortgage Paid Off Early – Half The Time] 4 Tips 🏠

hey there Tiffany Thomas with wealthy
Tiffany dot com and in today’s video I am sharing with you how I was able to pay
off my mortgage before the age of 40 and in less than half the time and first I
want to share with you the actual video that I took
right after I walked out of the bank and paid off my mortgage I did it I paid off
my mortgage in 14 years and four months I’m super super excited I’ve been
waiting for this day for a long time 14 years and four months to be exact and I
know not everyone wants to pay off their mortgage early some people want to
leverage their debt and continue to invest in more and more properties but I
am done investing in properties for now that might change later I think it would
be fun to buy a house with my future husband so we’ll see what happens
for me personally managing four properties right now keeps me busy
enough and I still have time to go do a lot of fun things if I hadn’t planned on
getting three more properties I would have paid off this mortgage quite a long
time ago but that wasn’t the case and now I feel comfortable with the amount
of properties that I have right now so I felt like it was a good idea to pay off
this first mortgage of mine and tell me in the comments if you have paid off a
mortgage yet or even when you plan to pay off your mortgage I’m curious to
know and if you’re ready for the details hit that like button and we’re gonna get
started I’m going to discuss four main things I did that helped me to pay off
this mortgage in less than half the time and before I turn age 40 my mortgage
amount was about a hundred and twenty four thousand I don’t have the exact
numbers unfortunately I did not know I would be doing a video on this fourteen
years and four months after I had purchased the property and let’s not
forget when we take out a mortgage loan we are actually paying a lot more
because of the interest on the loan so for my mortgage it could have been
around 70 grand more if I hadn’t made any extra payments or decided to pay it
off early alright the first thing I did was to actually set a goal to pay off my
mortgage early I wanted to pay off this mortgage before my 40th birthday and I
don’t actually remember when I set the school nonetheless I set the goal so
that was my to pay it off before my 40th birthday
and of course as you go along your goals can change over time and the school
could have changed but it hadn’t and honestly over the past year too I had
been toying with the idea of purchasing a fifth property but in the back of my
mind I felt like paying off this property was the goal that I had and I
still wanted to do that and that’s what I ended up doing so make sure you are
setting money goals along the way it’s really important that you know what you
want to focus on and set the goal for that not only does it make money more
exciting but you can also see that the things that you have accomplished along
the way and like I mentioned I know people like to leverage that and
continue to purchase properties and refinance their properties and continue
to buy more but I’m at a point where I feel comfortable with the amount of
properties that I have currently so I felt really good about paying off this
first mortgage and I actually have a friend who I feel like it may never be
quite enough for him he really loves investing in real estate and continues
to buy more and more properties and he manages them himself so he is very busy
with that which is great for him that is just not my personality I like to have a
lot of time for fun and for traveling and I also like having that feeling of
owning a property free and clear so if everything did fell or go completely
wrong I could eventually move back into this place and live there without having
to worry about paying a mortgage and I’m not over leveraged on my properties so
something like this that has just happened with our economy I’m not in
financial ruin if people aren’t paying me rent for a little while and owning
this property free and clear makes that even easier I have even more of a
cushion so I feel more comfortable with my properties by setting the skull I had
it in the back of my mind so when I was deciding to make certain purchases maybe
buying some new furniture I would think okay I could buy this new
furniture or I could put that money toward paying off my property even
sooner and by doing that I really had a clear focus on what my priorities were
and it doesn’t mean that I didn’t have any fun or
that I was starving myself but it just meant that I was spending my money on my
priorities on things that I felt were important to me so really think about
some money goals that you want to accomplish and take a step back when
you’re spending money and really ask yourself okay is this a priority for me
is this something that is going to bring me joy or lasting happiness or could
this money be better spent in a different way or saved to pay off a
mortgage or whatever your priorities are and if the answer is yes this is going
to bring me joy then go ahead and spend your money that way that is your
priority and by spending on our priorities it makes us a lot happier and
we don’t have regrets or feel bad about spending our money the way that we have
all right let’s talk about the second thing that I did to pay off my mortgage
early and that was to always pay my mortgage on time and never miss a
payment by making my payments on time every time it helped in two main ways
the first way is that I wasn’t paying any extra interest on this mortgage I’m
sure you’ve seen how much people pay in interest on mortgage loans and it is an
astronomical amount it can even be double what your purchase price was for
the property so the least amount of interest that we can be paying the
better off we are going to be so if we’re making our payments every time on
time we aren’t going to pay any extra interest and we won’t be paying any late
fees either and then the second thing that this helped with was boosting my
credit score so 35% of our credit score is based on making on-time payments so
by keeping our credit score even higher that means that we can make our largest
purchases our homes or our cars with a lower interest rate which means we will
pay a lower amount for those large items okay so how did I do this when I first
set up the mortgage I set up auto payments and they ended up selling my
loan to someone else later on which usually happens but with this lender I
can’t remember exactly why they might have charged an extra fee to set up auto
payments or I couldn’t add an extra amount with my payment but for some
reason I decided not to set up auto payments when they had switched over to
a new lender so I would honestly log into the account and make my payment
each month and I didn’t have a problem at remembering to do this because I
always pay my bills on the 25th of each month I actually have a reminder in my
phone to pay my bills every 25th of the month and I could take that out of my
phone but I just haven’t so by scheduling a certain day that I
would pay my bills I made sure to pay my mortgage payment along with my other
bills without fail every single month and this way if I wanted to pay a little
extra I could I would highly recommend setting up a certain time to update your
budget and pay your bills every month if not every week all right the third thing
that I did to help pay off my mortgage early was to make extra payments along
the way and like I mentioned earlier unfortunately I didn’t know I would be
doing a video on this 14 years later so I don’t have the exact amounts that I
paid extra each year and I know a lot of people talk about doing bi-weekly
payments having that scheduled out and I didn’t do either of those things I just
did what worked for me I would pay extra here and there and was paying at least a
few dollars extra each month so it’s important to do what works for you if
it’s better for you to auto schedule your payment’s then do that and schedule
in one extra payment a year then do that or add an extra each month with your
payment or just add extra when you receive a bonus or some type of extra
cash it’s not a one-size-fits-all it’s a do what works best for you because
you’ll actually do it that way okay the fourth thing that I did to help pay
off my mortgage early and before age 40 was to save up a lump sum to just pay
off that remaining balance and honestly this was pretty cool to see this come
together so my 40th birthday is coming up this summer in July and I knew I
wanted to pay it off before then and I was getting close to having the lump sum
in my savings and I wanted to see exactly what the payoff amount would be
because the actual loan amount that shows in your account isn’t the actual
amount to pay off the loan so I logged into my account and clicked
on the Rick first payeth amount and when i did that
it gave me an option to select a date but it wouldn’t go that far out it would
only go out to May first I did this toward the beginning of April so I just
selected May first and thought okay they’ll just give me a payoff amount in
here and I can look at it in a few weeks or later on I was planning on paying it
off in June so it would be before my birthday in July but when I hit to
request the payoff amount it actually popped up with a message saying that
they are sending me a letter in the mail with the actual payoff amount for May
1st so I kind of started thinking huh I wonder if I would have enough to pay off
that lump sum balance I received the letter a few days later and it gave me
the lump sum amount and they included the interest through May first and then
it did a county recording fee which was $40 and a reconveyance fee which was $40
as well and it also stated to call the lender 24 hours beforehand to make sure
nothing had changed with the amount and then a few things started to flow in I
actually did a speaking event which paid me over a thousand dollars and then the
stimulus payment came in and one of my tenants ended up paying me for April
with late fees plus Mays rent so I had an extra $1,200 and then the rest of my
tenants except for three ended up paying me before May 1st and there were a few
other things that happened so I feel like I had enough of a buffer to pay
this off by May 1st I’ve mentioned this before but if you
have an emergency fund or a savings account make sure you’re using an online
bank rather than a brick-and-mortar bank because you will get a higher interest
rate there you’ll be making a little bit more on your money anyway I transfer
that money from my online savings account to the credit union the
brick-and-mortar credit union that I use because they have a lower wire transfer
fee it’s 15 dollars and that’s how I decided to pay off my mortgage you can
either do a wire transfer or mail certified funds to them a certified
check essentially and I thought I’ll just play it safe and do the wire
transfer and pay the fifteen dollars and that way I know it’s taken care of and
they didn’t specify in the letter how long the wire transfer would take but I
googled it and it looks like it takes about 24 hours for domestic wire
transfers so I went into the bank on April 29th
and had them do a wire transfer to Bank of America where my mortgage was being
held to completely pay off my mortgage and it turns out they received that wire
transfer in the same day so I had it all paid off on April 29th and I will be
getting a check for I think it was six dollars and 30 cents since I paid it off
before May 1st and I even called them just to double-check so that is how I
was able to pay off my mortgage in less than half the time and before I turned
age 40 so I am super excited about this and like I said before if you guys have
paid off a mortgage comment below and tell me when you paid off your mortgage
or when you were planning to pay off your mortgage and just a few more
thoughts I did take out this mortgage in December of 2005 and I did it with two
separate mortgages it was better to do two separate mortgages rather than pay
PMI because I didn’t put 20% down on my property and I paid off that second
mortgage very quickly I think it was within about three years so I did pay
quite a bit extra toward that second mortgage and then I did refinance in
2009 so that dropped my interest rate a little bit so that helped as well
hopefully you found this video helpful and if you did please hit that like
button and share it with someone else who would like to hear this information
and don’t forget to hit the subscribe button to subscribe to my youtube
channel that will really help me out and we can get this content out to more
people thanks so much for watching I’ll see you in the next video

20 thoughts on “House Paid Off by 40 [Mortgage Paid Off Early – Half The Time] 4 Tips 🏠

  1. Thanks for watching! Comment below if you've paid off a mortgage yet! 😘

  2. That's so awesome! Congratulations! I think it's so important to share your story, especially for all the people who think this is an impossible goal, especially before you turn 40. And, my favorite part of the video was when you said step 1 is to set the goal. I think getting hyper focused on a goal as large as this one is the only way to succeed. And, anytime something else shiny comes up like a fun trip or other investment opportunity, it's easier to say no to them when that primary goal is front and center. Super inspiring – thanks for sharing!

  3. Great job! Love your monetary discipline!
    I set a goal to have better credit and now all 3 scores are in the 800’s.
    12 credit cards (only use 2 really) with 114k limit. Since I live in LA I still find renting a better option to save for investing in other areas.
    Would love to meet for coffee sometime. I love road trips and I can let you know if I’m ever passing through Utah. βœˆοΈπŸš—

  4. Hi There. I see that you are in the personal finance youtube space too! We should do a colab. I would love to come up with ideas with you.

  5. I always send $500 extra to the principal but my husband is telling that if we pay off our mortgage, it will affect our taxes…I really want to pay it before buying a second property

  6. Congratulations! It's a great accomplishment and feeling. Paid mine off 14 years early doing the same things. It helped having a spreadsheet keeping me accountable for the monthly payments.

  7. Wow! Congratulations on paying off the mortgage. we have the same goals and should have it done in 2022. That will be 5 years! Hope to be mortgage free like you one day!

  8. Congratulations on paying of your mortgage! I paid mine off on the 21st of April. Its a great feeling to finally be debt free.

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