How To Pay Off Your Mortgage In 10 Years - YouTube

You know, having done 4,000 real-estate investments, I should know a thing or 2

about the best way to pay a house off. And in fac,t I do. And what I'm actually

going to be doing today is I am going to be sharing with you my hack on how to

help you get your house paid off in 10 years. And not only that, I'm actually

going to show you how to pay it off in 10 years and leave you something a

little extra that you could use to keep on investing and growing and actually

creating a residual income with. Enjoy.

So, you might be watching this video because you've never heard of the 10-year

method. You've heard of the 30-year method. You've heard of the 15-year

method. Let's start there, makes you understand that and then I'm going to give

you my hack which you probably have never heard before. So check this out.

When you buy real estate, you need to understand that if you're going to do

option 1 which is what's called the 30-year mortgage, that there are 2

components of every payments. You have what's called P and I which stands for

principle and interest. But i want you to understand that on a 30-year mortgage,

let's just say for a moment that this represents principal and this represents

interest. And combined, there your total payment. So, let's say my payment as $500

a month. Well, if this is a 30-year timeline then what's going to happen is my

in my first year, my first payment out of 360. My first payment is probably going

to be majority interest and very little principal. And the next payment... In the

next payment the next payment will be the same. But after 10 years, I start

paying a little less in interest and more in principle. And what it'll mean is

by the time I get to my 30 years, I'm done paying interest and I'm only paying

principal. This means because all the interest is front-loaded that you're

going to actually pay for this house 2 and a half maybe 3 times. Which is

crazy when you think about it. My house is 100,000-dollar

house, I'm going to pay 260,000 for it. My house is a

400,000-dollar house, I'm going to pay over a million bucks for it. And

that's because the banks understand that you're not gonna stick with it for

30 years and they want their money up front. The principal moves in a very

similar format. And by the time you get to the end of the 30 years, almost

the entire payment is going to where its principal and very little interest. So, if

you've ever wondered why like, "Hey, I'm ten years into my mortgage and I can

lower my interest rate just a little bit. I'm going to do a refinance." People get

suckered into that all day long. They don't realize that they're resetting

this entire schedule. It's called amortization schedule. And they're going tO

start by paying a front load of interest all over again. So, people aren't

actually looking at the math the right way. So, problem with the 30 or mortgages

you're going to pay for your home 2 or 3 times. And that's why the second

more known option before we get to my 10-year plan (I got a 5-year one too.)

Is what's called a 15-year mortgage. And in the 15 year mortgage, what they're

basically saying is you're going to make a higher payment. But guess what? You're

only going to have to do it for 15 years as opposed to 30 years. So,

you're gonna pay way less interest. And true, you are going to

pay a lot less interest. But guess what? You have a much higher payment. And you

know what I hate about that? Is that makes sense under your life

circumstances today. Dude, but what happens if you lose a job? What happens if

something goes south? I know people all day long that would love to have that

extra cash flow back in their monthly pocket but they can't. It's forced into

the house payment. So, even though this gets you paid off in half the time, you

might have a 20 or 30 percent higher payment. And so you pay less interest but it's

going to cost you every single month. So, what I want to do today is I want to

give you a third option. And this third option you know for all intents and

purposes is going to be the 10-year option. You probably haven't seen this

anywhere else because I've been doing this a long time and I've just never

seen anyone else share it. So, let me help you understand what the 10-year option

is. We are not going to say, "Let's get a new mortgage and try to figure out a

paid off sooner." Because I don't like the bank's winning at that game of paying

all that interest money. I also don't want to do like the, "Let's get creative

and like make double payments a month. And that'll like cut down some interest."

Like... Okay, great. I'm not playing the banking role. I want to actually show you

how to get your house paid off in the next 10 years and in style. Here's what

that looks like. Let's just say for all intents and purposes that we have a

house here. And let's just say that it's valued at 150,000.

Let's also say that what's owed on it is $100,000. So, we're

talking about a very basic modest home. And you're basically saying, "Dude, I want

to get this paid off in 10 years. Not 15, not 30. I have a reason for doing it

sooner. "Kris, how would

you do that?" You have a little bit of equity. Meaning that home is currently

worth about $50,000 more than you owe. And that's important for what I'm about

to show you. If your house has a little bit of equity into it, check this out.

Number 1, we're going to get what's called a home equity line of credit. This is

where we go to the banks. A bank, I got equity. So, I want you to give me a

line of credit like a revolving credit card. And the bank says, "Sure, here's

$30,000." And they're basically saying, "Now, if you use that, there will be a payment."

You're like, "I get it. We're good." And what you do is you find an investment

property. Now, if you've already gotten a copy of my book Straight Path To Real

Estate Wealth. This book's been around for 15 years. Just got updated. This book

is what... It was the basis that has led to 4000 deals that I've been able to do

myself and help other people do. And in that book, what we talked about is

targeting properties where you can essentially hone in on a 20%

annual ROI. Now, this is important. Most people don't know how to get a 20%

ROI but my students that work with me get it all day long. A 20%

ROI means if I were to take $30,000 out of my home equity

line and put it into this property as a 20% down payment, then I would now have a

rental property. And if that rental properties earning me 20% a year on my

30 grand, then how long does it take for me to double my money? 20%, 20%

20%, 20, 20. All out up to 100%. In five years, I've turned

$30,000 into what? $60,000. And what can I do with

that 60,000? Well, instead of just buying one home, I can use it as a down

payment on what? On 2 properties. And over the next 5 years, that would

double again and give me about $120,000. Now, let's

just pause. We took some equity out of the property and bought an investment

property. It meant that this had a payment but the cash flow from this

cancelled it out because we got a great ROI. I took this home in 5 years and I

turned it into 2. And in five more years, I could have turned it into 4

homes. But instead, I now have the option of saying, "No. I'm

going to take 120,000." And what am I going to do, I'm going to pay back my home equity

line and I'm also gonna pay off the rest of my mortgage. And guess what how you

got that really paid off without doing 15-year mortgage of increasing payments,

not doing the 30-year mortgage and given the bank's their money 3 times over.

What you did was you said, I accelerated the process myself. Now, there is some

risk in doing this. As others would call it. But for me, the greatest risk is

putting your yourself and your family and financial harm's way. Because you're

following such a conservative system that your plan is broken and it doesn't

have the ability to create the financial freedom that you're looking for. That's

the real concern. So, you have to weigh out which of the 2 is a greater risk.

I've been doing this with people for the last 15 years. And if you have confidence

in your strategy and you know what you're doing, you're going to crush it. Which

is why... If you don't have a copy of this book, I just ordered a truckload. They go

really faster on YouTube. But while supplies last, if you click the link

below, I'll get you a free copy of this. It's on me. I am going to ask that you

covers us the the cheap shipping on it. I got my daughter in the basement who's

having an entrepreneurial experience with that who like everyday like loads

up all these things and then takes them over to the post office and it's kind of

like a little fun daddy-daughter project. But yeah. Cover the shipping for the

postal and this this is yours. And this book will go into greater

detail of exactly how you find these homes, how you do this. Even comes with a

free consultation to talk to my team and see if we can help you strategize

something more customized. Because you look at this and one shoe does not fit

all but the principle is true, it's tried and it works. And so, my friends, that is

how you get your house paid off in 10 years. Barring that you have a little bit

of equity in your home. And that's if you don't, we've got other things that we can

do. In fact, in your private consultation, I want you to say, "How can it happen at

home in 5 years instead of 10 years?" And we have a game plan for that as well.

So, listen. Thanks for watching today. If you're not a subscriber, make sure you

take care of that. Links below for getting your free copy of the book. Talk

with a member of my team or learn all the other ways to engage with me.

Take care of my friend. This is your mentor signing out.

I see you tomorrow.