1. Want to pay off your mortgage as FAST as possible?

Then do NOT get a 15 year mortgage....get a 30 year mortgage.

Yep, you read that right.

Here's why and how:

A client is getting ready to refinance a $256,000 mortgage.

BUT, she wants to pay it off 'fast'.

2. Here's why the 30 year mortgage is better:

They'll give her a 2.75 interest rate, so her payment is $1,046 a month over 30 years.

The mortgage guy told her that he could give her 2.5% if she went with a 15 year mortgage.

And her new payment would be $1,707.

3. The difference is $662 a month.

So, if she took that $662 a month and put it into an index fund that earns 6% (which is not a stretch at ALL),

She would have enough money in 13 years, 2 months to pay off the entire mortgage.

22 months early.

Saving her $37,553.

4. AND, SHE kept control of that money during that entire 15 (well, 13, actually) years.

Same. Exact. Dollars, but a much better result.

#themoreyouknow

5. Addendum:

AND, since it's over a long period of time, she'll likely earn MORE than 6%, and have the house paid off even sooner.