Episode 132 Transcript – How to cut your mortgage in half
Jessi Johnson: You’re live here with Jessi Johnson who is officially now in HD. I’m seating here interviewing Dr. Singham, Dr. Singham thank you for joining me.
Dr. Singham: No problem Mr. Johnson.
Jessi Johnson: Just for clarification, you’ve never met me before have you?
Dr. Singham: Never.
Jessi Johnson: Ever? No?
Dr. Singham: No, but you’re hot.
Jessi Johnson: Ah yes, were going to get along very well, you have outstanding taste.
Dr. Singham: Yes I do.
Jessi Johnson: Yes you do. My blog for today from my new flip HD camera inside the Terminal City members club is on prepayment options. Ok, so my big thing is, did you now…
Did you know that if you were to take a 25 year amortization which is the standard, a 5 year term which means is irrelevant at this point and you take an accelerated bi-weekly payment, do you know what that is?
Dr. Singham: Yes I do.
Jessi Johnson: Using a bi-weekly accelerated payment which I already suggest everybody to use nothing less and you simply increase your payment by 20%. So if you pay a thousand dollar mortgage payment you put on twelve hundred dollars a month that will knock off seven years from your mortgage.
Dr. Singham: Wow.
Jessi Johnson: Exactly, so that will knock you down to about an eighteen year amortization by simply not over leveraging yourself.
Dr. Singham: Sounds great
Jessi Johnson: It does sound great, and on top off that you can actually do annual balloon payment up to 20% of the original mortgage value each year which allows you to pay off your mortgage in less than five years, now is that not cool?
Dr. Singham: That is very cool, thank you Jessi Johnson for giving me all this mortgage advice.
Jessi Johnson: Your welcome Dr. Singham who I never met before.
Dr. Singham: Never met before.
Jessi Johnson: You can reach me, not that you would know at jessi@jessijohnson.ca
Dr. Singham: Own your life.
Jessi Johnson: Own your life but you didn’t know that either.
Dr. Singham: No, I just know that you should own your life, everybody should own their life.
Jessi Johnson: Have a good day. Bye.
