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The Simple Way This 35-Year-Old Paid Off Her House! - YouTube
Channel: The Rachel Cruze Show
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So we've been talking about taking
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your 30-year mortgage down to a 15
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and some of you are thinking,
"That's impossible, Rachel."
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And I'm here to tell
you, anything's possible
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if you believe, you guys! (laughing)
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So, I brought in Cole
here to share her story
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because she did this, she's
like a true-life example
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of going from a 30-year
to a 15-year mortgage,
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and you did it, didn't you?
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- Yes.
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- And I'd like to point out, too,
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you got a little bump—
(laughing)
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a little baby bump.
- Yes.
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- She's pregnant! We
like babies around here.
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Okay how far along are you?
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- 36 weeks.
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- 36 weeks. Is it your first?
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- Yes.
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- Yes.
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- First.
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- First, first little one.
- Yes.
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- So fun, which makes this whole story
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I think even better because—
- Exactly.
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- This baby's gonna experience
a 15-year mortgage house
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and not a 30-year, so. (laughing)
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- Exactly. (laughing)
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- Okay, so talk to me about
your home-buying process.
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- Okay.
- When was it
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that you first bought your
home, what was your situation,
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were you single, married?
Tell me everything.
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- I purchased my home in August of 2005.
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- Okay.
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- I closed on my house two weeks before
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I graduated from college, had roommates
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who helped pay my mortgage and everything.
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- So what made you buy a
house in college? I'm curious.
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- I didn't want to rent and, you know,
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I had the down payment sitting there.
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- Yes.
- 'Cause I worked
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full time the entire time I was in college
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and just kind of wanted that freedom
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away from home, away from renting.
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Like I said—
- You had money
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saved up for a down payment already.
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So what percentage, how
much did you have down?
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- I had five.
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- And you said okay, I'm
22, I'm gonna buy a house.
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So you bought the house, and you put it
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on a 30-year.
- It was a 30-year.
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- 30-year, okay.
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And so tell me about the
time when you looked up
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and you said, "Oh, I wanna
do something different,
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I really wanna refinance
and change to a 15-year."
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- After the real estate market crashed
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and all the interest rates
went down so significantly
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and everybody was refinancing.
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Your interest rate will drop, refinance.
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So I thought, "Okay, why not?"
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Looked into it and said, hey, you know,
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what could I get, just at a lower rate?
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- Right.
- And she said,
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"Well, we can do a 15 at 2.3% of 2.5%.
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- 2.5% interest on 15-year.
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What was your 30-year?
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My 30-year was right at 7%.
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So almost a 5% difference
you guys in interest.
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I mean that's amazing.
- It is.
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- That really is, and that may
not be the case for everyone,
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but you guys, if you do
refinance, your 15-year mortgage
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will have a lower
interest rate than your 30,
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maybe not 5%, but that's amazing.
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- Right (laughing).
- That's like
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Jesus is like, I'm gonna bless you today.
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- Exactly!
- That's amazing. So great.
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- Exactly, so we went through the process
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and she said you know your
payment's gonna be less
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and we're gonna escrow
your taxes and insurance
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that way you don't have to
worry about paying those.
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- So having an escrow account
it's like a third party
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holding some of that in that.
Yeah, so you didn't have that.
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- So the first seven years
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that I lived there--
- Yeah.
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- I was having to pay the
higher mortgage payment,
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that none of it was going to principal,
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plus the insurance, plus
the taxes out of pocket.
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- (laughing) Oh yes.
- So now I'm going
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to a lower payment and
all of it's together.
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- So once you got to that 15-year,
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you were so motivated, right?
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- Exactly.
- I mean, you were like:
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"I can pay this, I can pay this quickly."
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Especially since the payment was lower
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than your 30-year, which
may not happen, again,
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but still, (laughing), I
mean that's part of the story
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which is just amazing.
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- Even if it's a little more, you're paying
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a lot less in interest over the time.
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If I had paid it, just the
payment over the 30 years,
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my house that I paid I think $116,000 for
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would have cost $240-something thousand dollars.
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I paid it off in $124,000 I think.
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- So you paid it off?
- In that 15-year.
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- Catch that you guys. You what?
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- Yes paid my house off,
paid my mortgage off.
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- (laughing) You have no payments at all?
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- No payments at all.
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- And how old are you?
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- I'm 35.
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- 35 years old! You guys, that's,
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(laughing) I mean
seriously that's amazing.
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At 22, that 30-year, if
you just stuck with it,
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you would have been 52 years old
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when your house was paid for,
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but not only did you refinance,
get a lower interest rate,
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get a lower payment, but you
kept paying aggressively on it,
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you paid it off by the time
you were, you're how old again?
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- 35.
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- 35.
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Well Cole thank you so much
for sharing your story,
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seriously, it's so inspiring you guys
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because it's like okay, you can do this.
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You can go refinance your house,
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get it down to that 15-year mortgage,
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and, just like what Cole was saying,
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you get 15 and you're like,
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well what if I pay it off sooner? And you keep being aggressive,
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pay it off where you have zero payments
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and your house is yours.
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So, I hope you guys are
motivated by Cole's story
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'cause I think it's absolutely amazing
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and such a testament that you can do this
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if you just decide to, so.
- Absolutely.
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- So congrats girl.
- Thank you (laughing).
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- So proud of you. That's
awesome, so awesome.
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(upbeat music)
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