Name: How to Pay Off your Mortgage in 5 Years
Uploaded: 2020-03-05T21:40:31.000Z
Duration: 25 min 38 s
Description: Thousands of YouTube videos with English-Chinese subtitles! Now you can learn to understand native speakers, expand your vocabulary, and improve your pronunciation...

this is Sam Kwak, one of the Kwak brothers, real estate investor, and the

The imperative

author of the book, fire your boss and in this video I want to show you guys how

Modal verbs - A2

you can pay off your mortgage within five to seven years. Now, Before I go on

with the breakdown and the explanation of the strategy, I want to make sure you

guys get some disclaimer so that you guys are protected and then I am

protected as well so real quick I am NOT an attorney I am NOT a CPA nor am i a

financial planner so anything that I say or mentions of legal tax or financial

planning advice please don't take it as an advice but rather as a suggestion

based on my own experience and my own understanding of the strategy now this

is gonna be also a short 15 less than 15 minute video so make sure don't try this

alone okay if you guys have any questions if you guys any need any help

if you guys need some personal help I'm gonna leave a link down below at the end

of this video I'm gonna give you a link to go to to see further explanation and

I'm also gonna give you guys a little more breakdown in that in the link that

I'll send you to at the end this video so make sure you guys understand that I

get it there's other videos that will show you this strategy but remember it's

really crucial that you get some help a third party or a third pair of eyes sort

of speak to help you guys use the strategy so the purpose of this video is

just give you an overview an idea a possibility on how you can implement a

strategy in your own situation so that you don't have to pay you know a huge

sum of interest and spend all the time the world trying to pay off your

mortgage so let me go ahead and flip the camera around and I'm gonna show you

guys using a marker and piece of paper give you some illustrations and how

these how the strategy will actually work all right guys I'm gonna flip the

camera around so I'm gonna show you guys to break down and and these explanation

as far as how this strategy works now before I get to the actual strategy I

want to show you guys how and why mortgages work right and why I think

they are inefficient so I'm gonna break down the mortgages in a chart for you in

relation to interest versus principle now for those don't know what principal

is principal is the actual loan balance so if you have a hundred thousand dollar

balances $100,000 get it interest is is the expense that you pay to use the

bank's money okay that's basically bank's profit so I'm going to draw the

chart for you here the x-coordinate it is time so we're

gonna label with zero months this is gonna be 30 years and right between is

15 years okay this is gonna be your monthly payment amount monthly payment

so let's say we're gonna give it a give a good example here a hundred thousand

at 30 years a ssin it's gonna be just around about four or four hundred

dollars right and guys don't quote me here I don't have the amortization

calculator in front of me but based on my experience it's around four hundred

bucks for principal and an interest of all so with that four hundred dollars in

mind this curve here is gonna be your interest payment and this curve here is

going to be your principal balance so if you guys notice that first you know the

first half fifteen years bulk of your hundred payment is actually

interest payments right in the early months very little is gain taken out of

your actual hundred thousand dollar principal balance so in that four

hundred dollars most people think that if we make that four hundred payment our

loan is going back down to ninety nine thousand and six hundred bucks right

guys that is not the case in fact maybe like fifty hundred bucks if not even

less are gonna be the actual principal payment that's gonna go and lower the

the balance from a hundred thousand to you know the principal payment whatever

we're subtracting here so do you guys see how the first fifteen years you guys

are actually not making much progress as far as paying off your loan in fact the

first ten to fifteen years this is where the banks make money thanks

profit does that make sense guys so what's really interesting and for me

it's kind of entertaining most bankers will come to you and say hey you know

it's been about 10 years how would you like to refinance your mortgage for a

lower payment how would you like to pay $350 instead of $400 right most people

would say wow you know I'm saving $50 that's actually a pretty good thing but

what sucks is that and what they don't tell you is that we're basically

resetting our clock back to zero months and we're paying all of this interests

all over again kind of sucks isn't it right we're actually paying more

interest by refinancing by resetting a clock back to zero right because if we

did a refinance and continues and paid to 15 16 17 18 and so on we're actually

gonna be making more that principal payment and we're actually gonna be

doing much better in our progress as far as paying off our our principal balance

now what's really important is that this is something that you should know if you

guys are taking notes or if you guys have pen and paper in front of you the

lower the principal balance right as the principal balance gets lowered so will

be interest right I'm a huge Star Wars fan so I'm gonna make this reference if

you if you destroy the shield generator the Death Star is open to being a you

know vulnerable I know guys I'm a geek I'm in there I wanna that's the best

reference an analogy can give you so kill the principal and you'll also kill

the interests too so it's really important that we take the principal

balance down so that we're not paying interests does that make sense so that's

one of the pillars or I should say the core kind of supporting you know

methodology to making this strategy work okay now the other ins illustration on a

hundred thousand are alone at five percent interest

okay I know I can't spell here 30-year mortgage EMAS ation most people think

five percent interest is not bad okay but little do people know that actually

will amortize and will become compounded to actually be coming around 80,000 to

on interest alone so on that hundred thousand dollar loan that's the

principal balance on a 30-year Bogey's 30-year amortization five percent

interest we're actually paying hundred thousand dollar interest alone plus our

original loan amount is gonna be around one hundred eighty thousand to two

hundred thousand dollars we paid to the bank now guys if we're gonna pay her

thousand dollar interest we just bought a bank another house right we got a

house and they got a house so you know you guys can see how mortgages kind of

suck doesn't it right we're paying a lot of interest

take so long 30 years that's like you know that's that feels like forever it

really does right I'm actually scared that some of these banks are coming out

with fifty realization for you know the pseudo pseudo loans that is crazy right

that is insane that's ludicrous this shouldn't be the case and that there has

to be a better way in paying off our property there has to be a better way to

buy houses without paying 100 percent interest to the bank there is there is a

methodology there is a strategy that I'm gonna show you and this is why you're

watching the video right to pay off your mortgage faster and you guys probably

already know this right this is all gonna be in what's called Truth in

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How to Pay Off your Mortgage in 5 Years

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