HOW I SAVED $130,000 ON MY MORTGAGE | Financial Independence

today I’m going to talk about at home
saving a hundred and thirty thousand dollars on my mortgage. Hi friends
welcome to Freedom In A Budget I’m Kelly and on my channel we talk about how I
went from living paycheck to paycheck had my car repossessed to now winning with
money and all the tips and good habits that I learned along the way and I hope
that you subscribe but join the family I give a lot of money tips just practical
good advice and to share my journey and everything that I’m learning with you
guys so if you’re new I hope that you subscribe and join the family I am
really really excited about this video as you guys know we just bought a house
a few months ago and it has been such a fun and fun journey of being homeowners
and going through the whole process and you have somewhat stressful you guys
know but we did it and the house is ours which is so awesome and so amazing but
we are now in debt again we were debt free and now we have a mortgage we’re
still consumer debt for you but we do have over three hundred thousand dollars
worth of house mortgage which is not fun so we are trying to pay it off early and
just make sure that we are making wise money decisions and making sure that our
money is working for us so in this video I’m gonna share how we are gonna be
saving a hundred and thirty thousand dollars off our mortgage and taking
years and years and years off of it and paying off early which is so exciting I
cannot wait we currently have a 30-year fixed-rate mortgage we took we bought
the house for three hundred seventy two thousand and then we had our mortgage
for three hundred thirty three thousand so we’re in the process of paying that
off painted early but for this video actually decided to partner with Bestow term life insurance because term life insurance is something to think
about expression when you own a home and have a mortgage payment to make having
term life insurance it allows you to not to have to worry about your loved ones
financial state if something were to happen to you
best oh is one of the easiest ways to get affordable term life insurance they
use data to remove the medical exam so that you don’t have to take off time for
more or get blood work done or fill up
paperwork like traditional life insurance
Bestow’s plans started just three dollars a month and have it to 10 and 20-year
policies available getting a quote is very easy you don’t even have to put in
your name email or phone number so that you don’t have to worry about getting
spammed with influx of emails and calls just for getting a quote simply click
the link below in the description box and fill up a quick form to get your
term and life insurance quote now you guys have been with us of this whole
journey you guys saw my bunch of report cards when I was saving and we were
putting almost four thousand dollars a month that towards our down payment fund
at the end which is just incredible so now that we have a payment like mortgage
payment and we’re not saving for that it’s actually pretty easy and it’s so
crazy how much easier is now that we don’t have that big goal of buying the
house and everything that we’re able to put extra towards our mortgage so it’s
so awesome and even though I’m gonna be sharing larger numbers with you this can
be scalable we’re gonna show you how you can break it down how you can save a
little bit each month and how it’s gonna end up being huge on the back end and it
save you thousands and thousands and thousands of dollars in months and
months and months off your mortgage which is so cool so let’s head over to
the computer I’m excited alright here we are in my loan and we go through rocket
mortgage in raqqa mortgages awesome they actually have a calculator built right
into their site so and then you can see all of your payments and everything like
that so we’re gonna go down to amortization calculator an hour loan
with like I said it was taken out for three hundred seventy two thousand five
hundred and then our actual mortgage was three hundred thirty three thousand
right now our current balance is three hundred twenty nine thousand four
dollars and 33 cents and we are making payments of 1649 dollars and fourteen
cents so our principal paid we’ve made a couple extra payments so far and we have
paid almost four thousand dollars just five dollars short or $4,000
but we have saved almost $6,500 as you can see here six thousand four hundred
seventy seven dollars and 48 cents and that right there has saved us six
payments which is amazing then if we look here over to the right we see
estimated payment savings so interest rates and so total interest for the
mortgage 224 dollars which is just crazy that we’re going to be paying that much
if we keep on going like we’re going and then this graph is really cool here so
this shows the green is principal and then the yellow is interest so in the
beginning of the loan it is so interest heavy that you’re paying you’re doing
five hundred and three dollars to your principal and over a thousand dollars a
month is going to interest which is just crazy that devil is going to interest
and then as the months go up you can see it gets less and less and less every
month and then the last month is only twenty dollars to interest and the
principal’s can be one thousand five hundred forty six dollars so cool graph
there all right then what I want to play with here is this additional payment
amount this is so cool so when I first got the login in the mortgage and
everything when they first ended up I spent like two hours playing with this
just because it was so much fun so let’s take that we do ten dollars a
month extra every month and we’re going to do it monthly and let’s run the
numbers and see how that’s going to change things so estimated savings here
is for ten dollars a month we’re going to save it ten payments so almost a
whole year ten months off of our mortgage and we’ll be saving nine
thousand four hundred fifty nine dollars and forty eight cents just by ten
dollars extra month that is nothing compared actually nothing we were saving
three to four thousand dollars every month for this mortgage so putting an
extra you know a little bit extra is not much so and then total interest will be
two hundred twenty one thousand two hundred sixty
all right let’s let’s bump it up a little bit let’s say we do $100 extra a
month starting in November now we’re saving just $100 a month over the course
of the 30 year loan is thirty two thousand nine hundred eighty dollars and
we are be saving forty three payments forty three payments that is crazy
all right let’s let’s jump it up a little bit let’s go to three hundred
dollars a month three hundred is sixty nine thousand nine hundred sixty one
dollars movie saving ninety six payments all right let’s do five hundred dollars
$500 let’s try it alright so with five hundred dollars we are so close to a
hundred thousand dollars ninety four thousand eight hundred eighty dollars
and seventy two ten cents and that’s saving a hundred and thirty-four
payments that’s crazy all right let’s just say annually so let’s say we do
annual for five hundred dollars a month starting in November what would that be
all right that would be saving us eighteen thousand so you can do monthly
you can do annual you can do one-time payment so we want to do a one-time
payment saving us five hundred dollars so that’s gonna be a total save now this
does have to factor into how much we’ve already saved here so definitely keep
that in mind so the six thousand would be including into this all right now
let’s see how much it would be if we did a thousand dollars month we would be
saving for a thousand dollars a month a hundred thirty two thousand dollars in
interest saved and we would only be paying 98 thousand dollars of interest
and then let’s look at payments H so payment saves would be a hundred and
ninety two payments saved that is taking 16 years off of the mortgage 16 years
that is crazy that is over cutting it in half by just adding a thousand dollars a
month like that just blows my mind absolutely lost my mind especially since
we were putting so much to it already so by doing it now in the front end it’s
really gonna be saving us so much money by just a thousand dollars a month it’s
going right to principle like this this really really just blows my mind a
hundred and thirty two thousand dollars that we would be able to save crazy
absolutely crazy and so cool and so exciting so we have
been doing this we’ve been putting an extra thousand dollars a month a towards
our mortgage since we got it in August our first payment wasn’t supposed to be
made until September but we right off the bat added that thousand dollars in
August add in September added in October so we are three months in and we are
paying extra which is so cool so right there you can see thousand dollars one
hundred thirty two thousand dollars extra towards our mortgage alright guys
that is how we are saving a hundred and thirty thousand dollars off of our
mortgage how we’re going to be taking 16 years off of our mortgage that is just
crazy and paying off our home in just 14 years or less I’m sure we’ll be getting
bonuses and putting more than a thousand dollars a month towards it and it’s just
crazy I am I love this I love up playing with their numbers I see how we can save
how it’s being consistent impact especially like I said that we’re paying
this on the front end of the mortgage where our mortgage is more interest
heavy so we’re seeing the impact of it now if you were five years into it
you’re not going to see as big of an impact but you’re still going to see a
huge impact so that is amazing also if you are interested in my budget
report cards you guys know that I want that I have months and months and months
of budget report card videos with my Etsy shop and all of that I hope that
those are helpful tools I’ll have that link for you down below in the
description box and then also with best Oh L had the link where you can your
free quote and it’s so simple guys it’s so easy term life insurance is so
important especially when you have a mortgage
I couldn’t imagine leaving Jamie without a mortgage it’s so important so go check
it out they’re incredible awesome company and up next is a video that I
would Joseph hope of renting versus owning so little hot topic go check that
one out next it’s gonna be fun

34 thoughts on “HOW I SAVED $130,000 ON MY MORTGAGE | Financial Independence

  1. When Mr. Cooper came out with that calculator feature to their website I spent some time paying with it. I love the fact that they want this to pay off our mortgage off early. In August 2020 we plan to start paying $2000/ mo extra toward mortgage. Debt freedom!!

  2. Get a QUICK and EASY quote from Bestow:

    Shop Excel Budget templates on my Etsy shop!:

    Monthly budget report card videos:

    OWNING vs RENTING A HOME – Why RENTING May Be The Smarter Move For YOU:

  3. Kelly great video! You have me motivated to add more to our mortgage payment once we are debt-free by the end of the year. It’s amazing how our frugal ways have helped us save so much money so far that we can put towards our debt. 👍

  4. Great video. Really makes you want to put every spare cent towards the mortgage when you see those interest savings!

  5. So awesome! 👏👏 You are looking gorgeous! I can't believe you have already had your home for 2 months! I can't believe we are just shy of 5 months moving to Alaska. 😬

  6. By the way, if anyone wants encouragement in paying off a debt, you can use the free mortgage online calculators for ANY debt. I plugged by student loans in (pretending they are my "mortgage"), at their average interest rate…. over 10 yrs (my current loan term, I plan on actually taking about 3 yrs total). And then play with making extra payments or shortening your loan term! Its really motivating to see how much you save on interest! (And also mind boggling too see how horrible interest accumulates! But I try to remember, once my loan is paid off, I can put the extra money into investments and make the interest work in my favor!)

  7. Great video! The only thing you need to remember is in that 14 years of paying off your home life happens. Loss of a job, children, house expenses ect can eat into the extra payments but everyone should attempt to add extra in their payments when they can!

  8. That calculator is awesome. I wish my bank had that for the loans I have to payoff in my debt-free journey (it would be great to see what rounding the payments to a certain threshold would do). Meant to ask – what happened to the DDF videos on non-budget Fridays?

  9. Hi Kelly….I've only just started watching your video but I had to pause it for a second to message you! My mum had a 25year mortgage and she paid it off in FIFTEEN YEARS!!! I was SOOOO PROUD of my mum because she was a single parent to SIX children, Struggled to make ends meet but we would never know because we ALWAYS had a roof over our heads, food on our table and clothes on our backs! Yes times were hard but my mum was a GREAT SAVER(the "envelope system and sinking funds" my mum has been doing for years!! I grew up with her doing that! I'm now in my early 50's and I've been doing it from when I left home in my teens but only a little bit mind😄 but I started doing it much more when I had my two boys who are now in there late twenties!) How? I hear you ask she ALWAYS paid off MORE than the interest(i think you call it principle in the U.S) so the extra went towards the mortgage! Any spare monies she had went towards the MORTGAGE and she paid the interest as normal every month! That's how…..😊 my mum has been Debt free for over Ten years!

  10. It's just amazing how much you can save just by putting as little as $10/month. Your motivation & drive will get that house paid off in no time!

  11. That does boggle the mind with not only the interest saved, but the time! I’m sure you’ve heard the argument for investing rather than paying off a mortgage early- have you given it any thought? That would make a good video. 😬👍🏻

  12. Not sure if I am weird, but I LOVE playing with the amortization calculator! Pretty much every month after my payment (and extra principle) posts, I go in and see what I can pay next month to get it to an "even" number. I am 4 years in and still seeing a big impact being that I'm only about 13% into the mortgage.

  13. This is amazing Kelly! Great advice. I’ve been paying down our mortgage with a couple easy methods and I am excited to have it paid off early.

    Also loving the song on your intro!

  14. I love how you can break it down and save a little bit each month and it ends up being a massive amount!!!

  15. Fantastic video!! I play with my mortgage calculator (through the bank) all the time. I wish I knew this 11 yrs ago when we first purchased, as first time home buyers. We did do something to save interests though… We pay weekly mortgage (or you can do bi-weekly). This way you're making an extra months payment. This shaved years off our mortgage. Have you considered paying every other week, instead of monthly? Maybe next time…. at your renewal? Great video, loads of info. Thanks!!

  16. Hi Kelly (it is Joyful Home, changed my name). Have had some family illness anyways… we used our amortization table to our advantage. We hung ours up on our fridge so we could cross off every time we jumped down the table. I hope you all are doing well!

  17. Not knowing what your monthly expenses are makes it a little hard to calculate, but have you considered a HELOC? Try this calculator:

  18. Why don't you save that $1k a month in your capital 1, account which makes that 1.9% in interest, then pay one time a year towards the prinicpal? Do you think that would be better?

  19. I had a baby last year and was wondering if children are something you are planning on having and if so, how you calculated for that. We were aggressive with paying off our mortgage prior to the baby but now its seems hard to even scrape together 100$ a month. Would love your thoughts!

  20. Congratulations on your new home! Such a milestone. We are working on paying our mortgage as quickly as possible too. Like you, I have tons of fun playing with the amoritization calculators. I guess that makes me a nerd too! HA!!!

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