How To Pay Off Your Mortgage

So, today we're talking about accelerated methodologies for how you pay off a mortgage. And I'm going to show you 4 different ways to do that. Like if you want to accelerate and get that house paid off, I'm going to tell you that my whole journey of buying thousands of homes began with my fascination of the fact that I was on the phone doing telemarketing in college talking to people who had gone to college, followed society's plan and then got a house. And you could tell that the burden of like owning a house worth having hundreds of thousands of dollars of debt, it bothers people, right? It's like the biggest payment in your life. And so, I noticed that a lot of these people 20-30 years later with refinancing and restructuring the loan, they weren't getting their houses paid off. And there at some point you get old enough where it's like, this is like a weight and this is a pressure. So, as a young man in my early 20s, I'm like, there has got to be a way to get this house paid off quicker and faster. So, I am going to share 4 methodologies with you today. And with that, we're going to get right to it. So, come on into my secret lab that isn't so secret. But it is my studio. And what we're going to do here is I'm going to kind of throw up on the board what these 4 options look like. And break this down for you. So, Kris, you might be asking, what is the most traditional way that people go about paying something off? Option number 1 is that when you get a house, the typical mortgage in America is what's called a 30-year fixed mortgage. And what a 30-year fixed mortgage is is basically it's a bank saying, oh, we're lending you money and let's just use round numbers. You're buying a house for $300,000. And you're thinking to yourself, alright. What's it going to take for me to pay off this house? The bank says, well, we'll help you pay it off in 30 years. But it's not just taking 300,000 and dividing it by 30 years of mortgages. You're actually going to pay for that house like 2 and a half times over. And the bank is going to make all that money in interest. And I don't want to go into too much of that detail because I think it's a little bit boring. But I want you to understand that the bank wants their money if they're going to work with you for that super long period of time. Now, the way that they do this is they basically say, oh, 30-year fixed mortgage, here's your payment. And if you make that payment every month for a year, that's 12 months. If I do it for 30 years, it's like 365 payments. And if I were to do that for 30 years, the bank would get all of their money back a couple of times plus you'd get on the house free and clear. Free and clear means you have no more mortgage on it. You had no more payments and you own it. Here's the funny thing about this. What you need in your 30s when you buy a house is what you think you'll need in your 50s or 60s? Dude, probably not. You might have kids. You might have to move. You might get job changes. You could move across the country. You may have to downsize. You might need to upgrade. Reality is no one keeps a 30-year fixed mortgage. And here's the problem. The banks frontload all of the money they get in the beginning. So, if I had a payment of let's say $1,500 a month, like 80 bucks is going towards the principal. The rest is going towards interest. And the bank knows this. They know that there's a high likelihood you're going to move or change your life in the next 7 to 10 years. So, basically almost all the money that you're paying on this 30-year mortgage goes to who? The bank. So, you're not even paying the house down hardly at all. It sucks but it's true. And if you're the kind of person that's like, actually Kris, I've got a pretty boring predictable life and not much is ever going to happen to me and I'm not really going to go places. And what I want today is what I want 30 years from now. If that's you, then something like this might work. But for you to actually gain the bank at this system, you'd have to hold on to that mortgage for at least 25 years. Sucks. So, then you start saying, you know what? I am now aware of that, Kris. There's got to be a better way. A faster way to pay off my mortgage. And you know what they do? The bank said, you know what? For those who want to be more aggressive, to be more conservatives. We're putting those 2 words together. We're inventing something called the 15-year mortgage. And here's the way the 15-year mortgage does. You're not going to pay so much out of an interest but you're going to have a much higher payment. So, instead of a $1,500 a month payment, maybe your payment is $2,200 a month. And guess what? You only have to pay it for 15 years. And some of you're like, hey, this is fantastic. It's not fantastic. You're going to bleed more cash flow. You're going to put more money into the house. And what you're really doing is investing in your house. Problem is your house doesn't pay you anything. It's a liability. Even though it'll appreciate with time and the value will go up and you'll look back at some point be like, wow, I have so much of my assets and net worth in my house. This was a great decision. You'll have done it the most inefficient way possible. If you want the bank to win, play their games. I don't like the bank to win. I want to win. I'd like everyone to win. But the bank here is going to collect so much money off of you, it's ridiculous. And if your life changes in the next 3, 4, 5 years, you're not going to really reap the benefits of that. More importantly, you don't have as much free cash flow because you're dumping it from your own pocketbook. You're dumping it back in the bank as if it's an investment. It's not an investment. Then you say, alright, I want to do something even more aggressive. That's it. You're like, you know what? I don't want the bank to win. So, you know what I'm going to do? I'm going to get on either a 15 or a 30-year mortgage. But what I'm going to do is I'm going to throw extra money at the bank. If my payments 2,000, I'm going to pay 2,500 this month. And why are you doing that? Because you want to pay it off quicker and add more principal which means you're going to pay less in interest. Problem is you're still playing the bank's game. Now, I do have an option that I do believe in. It's not one of these 3. And at this point, you might be wondering what it is. And my friends, this is why you're watching the video and that's why you've gotten to this point. It's for this moment right here. So, I'm going to give it to you. I'm going to tell you however that it's different than what most people think. I don't believe in ownership. I believe in control. And while I can't control people, I can't control money to some extent. I want to kind of break that down for you. Being a young man and realizing, oh my gosh. Paying off my house is like... It's one of the hardest things to do. It takes so long. What's a faster way? Instead of putting extra money in the bank, take that extra money and option number 4 is put the difference into an investment property. Investment real estate. Imagine for just a moment. If you bought a house that had at least a 20% annual ROI. And let's just say that instead of paying down that house more or putting a bigger down payment on it, let's say that you put $40,000 down on a $200,000 house. That represents by the way about a 20% down payment. And it's like, I could take that 40 grand and put it in my house and pay off my primary residence sooner. But instead, you know what I'm going to do? I'm going to take that 40,000. I'm going to put it into an investment property. And if I'm earning a 20% ROI, here's the question. How long does it take for me to double my money? 1, 2, 3, 4, 5 years. 20%, 20%, 20%, 20%, 20% adds up to 100%. 1, 2, 3, 4, 5 years. So, just imagine for a moment that you could double your money every 5 years. If you could do that, then 5 years later, 40,000 has become what? Well, it's become 80,000. But 5 years later, 80,000 has become what? 160,000. 5 years later, what does it become? It's become $320,000. Now, by the way, we did this in 15 years just by buying one investment property. You can freaking pay off your house right now and have leftover money to invest. Let me share with you the scenario I find people in all day long. And this is how I've helped people really grow themselves. I'll find people that own a house already. It's a primary residence. And they've got some equity. Let's say it has a value of $300,000. That's what... That's what it is worth in today's marketplace. But what they owe is $150,000. Now, if your house is worth 300K and you owe 150K, then how much equity do you have? Equity means the difference between what you owe and what it's worth. So, this is the V for value. O is for owing. And we're going to use E for equity. And the equity is also 150,000. If I take my equity and what I own at it together, I get the value of a home. So, what can I do with this equity of $150,000? Well, most people can go to a bank, borrow up to 80 or 90 percent of the value on their home in this situation. Probably free up about $80,000. Now, the bank will let you actually borrow that. It's called a home equity line of credit. Or you could just refinance the house. The bank gives you 80 grand because like, dude, this is an asset. You have this money. What could you do with 80,000? Now, first of all, you're thinking, Chris, I'm freaking trying to actually like pay off my house. Like if I pull 80 grand out, guess what? I don't owe 150 anymore. Now, I owe 230 grand. Like I'm freaking going into debt. This is not the plan. Watch. One step backwards might mean 10 steps forward. This 80,000 is enough to buy what? 2 homes. If those homes are earning 20%, then in 5 years, I can turn my 80,000 into what? 160,000. By year 10, if I turn that into $320,000, what can I do with that $320,000? I can pay off my house. I can have leftover money. And I did it in 10 years. I didn't do it in freaking 20 years. It'll be even faster than that when you actually look at the compound interest effect. Today's video, I wanted to kind of open your mind and let you know there is a smarter way, there's a better way. But you got to be thinking, how do I access homes with a 20% ROI? Well, most of my homes have a 25, 28 or a 30% ROI. Which means I can double my money sometimes every 3 years. If you'd like to learn more about that, a couple of things. One, I highly recommend that you actually get a copy of this book. I'm giving it away to you today for free. There's a link below. This book will share with you exactly how I do that. And there's another link below. Maybe a more important link that says, partner with It'll take you to a page where I'll show you my track record on my last 4,000 homes. And I'm also going to share with you how I get 25 to 30% ROIs. If you like what you find there, you can talk to my team and I can actually show you how to pay off your home. Not only a lot faster but more importantly, create the real dream which is not a paid-off home. It's called financial freedom. And I don't mean financial freedom is like, I'm rich, I'm a billionaire. What I really mean is getting a mortgage in your life. Not just your house. How do I live life on my terms? How do I get the residual income I need to get my time back? And do the things that I want with who I want when I want. I figured all that out by the age of 26 and now I've been able to magnify it and take it to a whole new level. We got this one life to live. Don't let the banks own it. Don't play the banks games. Their games take so freaking long. Reality is there's a better way, a smarter way, a faster way and frankly a safer way. So, do yourself a favor. Pay off your house the most intelligently possible. My name is Kris Krohn. I hope you enjoyed today learning about the 4 different ways to pay off your house. Links are below to learn about how you access my deals earning 25 to 30 percent or how you can get a free copy of my book. Either one of them can be super helpful on your journey of figuring out how to become financially free and take total financial control over your life. If you're brand new to the channel, make sure you subscribe. I got new videos coming out every day to teach how to be your own financial genius. Take care.