So you paid off about $168500 per year - so either you sold something really big (like another home) or you make a ton of money (300K per year) or you won the lottery. How were you able to pull this amazing feat off?
@@FunandBudget kinda. This has been a 10 year project. I bought 2 homes during the housing crisis. Waited for them to appreciate. I had them rented out. Did biweekly and extra payments to get them paid down. When my family decided to buy the "forever" home we sold them and put 280k on the mortgage last July. Left us with 53k. We have been putting between 1700 and 2k extra on it since. I did a recast in july also. That helped a lot. We also do biweekly. It's all about planning and staying focused. Bought during a housing crash and sold during a housing boom.
@@FunandBudget I'm a blk female also. I love your journey. I love watching us do crush the odds and defy the stereotypes. I have so many plans for the money when I'm done paying this house off.
Dumping escrow is the way to go! We did this and it is awesome because we continued making the payment as if we have escrow we will payoff our mortgage in 9 years 😁 great information
But then you still have to have funds for taxes and insurance? That would be in addition to the amount that you pay on the house which you said you didn't lower it.... sooo yes you'll be paying the house of quicker, but still have to come up with those extra funds no?
My mortgage company makes me keep escrow until PMI is gone, so I’m on a journey to get rid of PMI as fast as I can. I’m slowing down on my extra payments until I get a good emergency fund in place. I have student loans and my furnace that are taking a big priority right now also.
@@christyflores1459 I need to wait a bit longer. I’ve been there for around 9 months and my home value isn’t going up super quick, so I don’t have enough equity to drop PMI right now. I’m not sure I want to pay closing costs just for a $600 a year savings. My PMI is low because I have good credit.
Rather than make an extra payment on the mortgage, put the extra money in a savings account or money market account so the money will earn you interest. Then, when you have the money in savings to cover the home pay it off. This way you earn interest instead of the mortgage bank just getting the money.
@@-.-_123 I really like this strategy. I think it is a great one. That is actually the strategy I switched to in January. I’m investing the money and then when I have enough to get rid of PMI I’m going to make a lump sum payment and then my next lump sum will be when I can pay off the house or if I decide to move a down payment for the next house.
I am SO excited to come back and share that I sent an email that night, I got a response back. They told me that I would have a decision in 5 business days. I received an email today advising that my request has been approved. 🙌🏽 I can definitely pay my own taxes and insurance!! I am very happy I came across this video…. Thank you again for sharing this information!
Great job 👏. You know when we used to own a house, we were able to knock off a couple of hundred dollars off our monthly payment. How...was we realized that our homeowners insurance (picked by the mortgage company) overvalued our house. We called the insurance company, they said that they only re-evaluate once a year and that it wasn’t that time of the year. So we did our own research, found a different company and they valued our home correctly. Long story short, the mortgage company doesn’t look around and price compare for you. It is okay to look for better deals yourself. And if you are able to be responsible for your own escrow, you have even more control over those decisions.
That was super informative... I learned so much about Escrow n the phone call was very helpful...whew u paid down like half your mortgage you are freaking killing it 💃🏾💃🏾💃🏾💃🏾.. love the chart
Had 17% loan-to-value left on my house. Until 3 months ago. Refinanced to get a lot of work done (new roof, windows, bathroom remodels, etc.) Now at 34% LTV. But the refi cut my interest rates in half. I'm at a 15 yr mortgage, payments just $60 more than previously. I'm rounding my payment from $1,460 to $2,000, and should have this paid off in 9 years.
@@FunandBudget I will definitely keep this in mind when I am on to paying off my mortgage. This is so dope. You can just pay the yearly premium. This is amazing.
Thank you for this video! We just purchased our home here in WA in January 2024, and I’m trying to remove escrow because we are paying so much when I can literally just be making our payments ourselves
Hey .... Awesome U-tube channel is a blessing.🥰😍. Currently on a journey to pay off my current mortgage too. It is great to see someone else like minded...😍🥰. You are doing the exact
Congratulations!!! And yes, the thing I would have done differently is I would have sent a little something extra to the principle - even $25 - when I first bought the house. Only regret.
I just looked into my mortgage and found out that ALL the principal payments I’ve been making are going to escrow!!!!! I’m so over the top MAD!!!! They can’t fix it because it was already paid out for property taxes! I’m calling today to see how I can take off the escrow and pay it myself.
Perhaps you should consider making biweekly payments. It would have also been advantageous to do a refi with a 15 year fixed rate mortgage and not 30 years.
The escrow info, thank you very much ma’am!!! Just be available via Bluetooth when it’s time for me to sign paperwork. Lol. I’ll have all documents forwarded to you so they don’t pull a fast one. And also. I’m tired of company’s making up shit just to charge more. Like. You said this is why you upped the mortgage so I pay it and now it’s another reason!? DEAD ME WITH THAT!
Right...they work hard to keep us confused...and you see how he had to stress if I don't pay my bills in a timely manner they will take them back over and never let me pay them myself again - LOL
I remember when you started this journey. You have made some serious progress. Thank you for the information, you are so right, I could be getting points on that stuff in escrow. Im going to take a look at my info this weekend.
This video was so helpful. We're hoping to start tackling our mortgage January 2022 with a velocity banking strategy. We're currently paying off our last student loan debt with the velocity banking strategy. There's so much I need to educate myself on regarding insurance and escrow. This was so fun to watch! Thank you for sharing.
JoJo, December 2021 is when I make my last mortgage payment. I never paid for an escrow account because it wasn't required because I paid 20% down on the original loan. I have a conventional loan.
Depending on the term you will pay more in interest ie 20 year 15 year starts that way.. great explanation..some VA does require. Shortages does require escrow.. So good sis
Love your channel. Your content is so fabulous. This teaching and inspiring is great. Where do we find this amortization document so we can plug our numbers in. TFS and Keep bringing the great content.
My bank has a early pay off schedule section in the mortgage section. Kinda cool to place random amounts to see how much faster the mortgage is paid off.
My mortgagee gave me the same run-around when I requested to have escrow removed. They finally caved after I paid off 20% of the original appraised value and after I sent them a very formal letter requesting cancellation of my escrow account.
If you saved up the extra principle payment money for 12 months,do what is called a recast,this will not only take the principle down,but your mortgage payments will go down as well to reflect the new balance.
Thanks for the info. Paying on principal looks good on paper but when you need that money and the mortgage company knows it they will more than likely not let you refi or do a Heloc. I am putting money in a separate account then when it equals principal I am paying off with one payment.
The issue for me is all the interest that accrues on such a large balance in the meantime. My strategy is to keep things balanced...while I am paying down on my home I am also aggressively saving and I am also maxing out my annual retirement plans.
I just called to get out of escrow. Every mortgage company I've ever used under estimates $1500-2k. That's a whole freaking tax or insurance bill. Like if you aren't good at math, don't work in a job that requires math. I don't understand how they can constantly underestimate by SO much. I got fed up and said I'll just do it myself. Lol Waiting to see of its approved. 🤞
Riggghhhttt - well definitely keep us updated if its approved. Its like most of us budget with our mortgage/rent being a certain amount - I do not need the fluctuations in my life...LoL
Great video. I just got the pmi removed from my house and asked about removing the escrow. They told me there is a processing fee of about $600 and it’s based off a percentage of my mortgage balance. I thought this was stupid and wanted to see if anyone else had to pay a fee to pay their own bills.
Whew child - that is definitely a money grab and a shame - there is definitely something to these banks "making" us pay them to hold our money in escrow to pay our bills because suddenly we are not responsible enough to pay that one bill but yet no one holds our money to pay the other 343434343 bills we have in our lives.
I disagree with removing escrow. I don't like owing money or putting money to the side in order to later pay. I'm at more peace of mind by just paying it with my payment plan with the mortgage. By continuing to pay the same amount after removing your escrow you still have to come up with the funds to cover your tax and insurance... and you putting it on your credit card is based off the idea that you either already have enough income to cover it or you are operating on credit debt with paying off over time. In the latter you create debt and I personally refuse to have debt other than the mortgage.
Yes...I already have enough income to pay it...the same way a mortgage company takes your money and holds on to it for you, I can take my own money and hold on to it for me - or better yet...just go into the app (my county has an app where I can pay taxes whenever I want) and pay for my taxes - its all good and I still get the points.
Velocity Banking! I’ve paid an extra $30,300 a year. Imagine how much those interest amounts drop. If you paid in large chunks, rather than the smaller ones you’re paying now, say about $20k or a comfortable amount you can recoup in 4 to 6 months. You’d be much closer to the 200’s by the end of this year. Most people use Heloc, but close to figuring out how to do it on my own.
@@sherenet3152 I was thinking keeping a separate savings account could serve as my own “heloc”, but it would be a while before I could test it out. Pay a chunk, use credit card that is paid off monthly for expenses. Deposit entire paycheck in that same savings account as it comes in to recoup and repeat the process. You can email me at pocketswordsman@gmail.com
Great info, as always. Are you planning to do the same for your rental property mortgage? I really need to remove the escrow for both of my properties (primary home and rental) as well. 👍🏼
I'm going to do partial escrow removal on the rental - I will pay my own insurance. The reason for now is because I receive my property tax bill in the mail on this house - but I never received one on my rental which is in another state.
New to your channel. thanks for the information. This will just help me get this mortgage paid off a lot sooner. I so wish I knew this a lot earlier in life.
Yup - the ad thing can be annoying - totally understand if you don't wanna check out my videos due to having to skip them...I could go on and on about the time I put into doing alllll of this but I know you already heard the rant and I know that how I spend my time is my own personal decision - I just think ads are a small (and free) price to pay.
@@FunandBudget Oh Okay....the ads are by design. I didn't know that. If they are on with your permission, I will simply skip. I didn't know you saw the ads and besides...…………..ads can take me off my 'budget' sometimes.
I just don't need a sinking fund because I have a simple concept...save money, don't spend it, when bills hit your mailbox...pay them. My tax bill comes in around $5K a year - I don't have a sinking fund for that either - I just pay my taxes.
You know you getting stoned...LoL...loooookkk somebody invented the word and concept of sinking fund...I'm just not on the wagon. I don't have a sinking fund for my taxes I never said I have to save x amount a month and put it in the bank for my taxes...I am naturally a saver so I save for whatever may come.
I got an early pmi removal due to having enough equity in the home before the 2 year mark. They are refusing to remove my escrow because my loan to value ratio is over 80% even though I'm over 20% in equity. They said its based on the orginal loan value and not the current per fannie mae. Basically saying pmi removal is different than escrow removal.
The way these mortgage companies hold on to escrow accounts is really suspect...it makes you think, how much of their business model relies on them having escrow accounts on these properties.
@@FunandBudget They want to sit on that interest they are making off our escrow which is so messed up because we should have a choice without guidelines.
Hi...and welcome! Escrow is money that the mortgage company holds to the side to pay the bills they (for some reason) don't think you are capable of paying (property taxes and insurance)...which is odd because you have to pay your other bills to include the mortgage - but to get permission to pay your own taxes and property insurance you have to petition the company to give you the permission.
Hello, thank you for your videos!! My question is as follows. My request to cancel my escrow was approved today. I would like to know what happens next?? Do I contact my city and insurance company and tell them I'll be paying them directly from now on?? Do I get any escrow money back that was collected last year?? Thank you in advance for your assistance.
I did contact my insurance to ask that question...for me, they will start adding it to my monthly insurance (my cars are with them) bill (mine doesn't have a discount if I pay for 6 months up front). As far as the city goes...for me I had always received my tax bill in the mail - I just never used to pay it before since escrow paid it. Now when I receive it, I pay it. But it doesn't hurt to give them a call and find out the tax schedule. Mine are due in Nov and May. You should receive a check from your lender of what was left in the account.
Sis, are you a veteran? If so, are you getting Disabled Veteran Benefits? If not, I can forward you a company my husband and I used. With us being 100%, in the state of VA you don't have to pay property tax.
Question. I'm thinking one of your videos you said you paid everything with cc to help build points. Does that include mortgage?? If so, how are you able to? I called my mortgage company and they don't have that option
Hello congratulations on your movement. I need your advice please. I got my home 12/20/2019. P&I +M payment is 2,243. Rat is 4.375%. And loan balance is $403.610. I want to refinance my house because to get lower rate. So can I remove my Escrow after refinancing? Thanks
I personally thing refinancing to a lower rate will be an excellent move anything below a 2.75 will save you so much money over the life of the loan. Tell them you do NOT want escrow included and stay on top of that especially on the forms where you see the escrow options. Different states may have different rules and different banks may have different rules so you may want to shop around with these inquiries. Look over the cost of the loan and the details there...my goal is to pay as little as possible for a refi. If the loan cost you $10K - how long will it take you to recoup that money in interest saved? How will it look if you applied that $10K to the principle instead?
Even if you pay your shortage your monthly payment is gonna increase because there will be an increase in how much they need to charge u for ur escrow for the upcoming year because they are gonna go off what your bill was recently . Your shortage payment is for the year that just went and now they gotta collect enough money to ur escrow so that when they pay ur taxes for the new year you got enough money in there and hopefully won’t get another shortage by the end of the year. But remember that all depends on what ur new tax bill is gonna be which they don’t get until it is due. If it went up a lil then ur more than likely gonna get a new shortage but it won’t be as high as before , but if it went down (fingers crossed) ur gonna have and overage and you will get that back as a refund.
Call your mortgage provider and see what they require. I just wrote in a simple email with the Subject Line: Request to Remove Escrow - Good Morning, I wish to remove escrow entirely from the following account: Name: Property Address: Loan Number: Rochelle Adamson Budgets just dropped a video regarding how she had her escrow removed: ru-vid.com/video/%D0%B2%D0%B8%D0%B4%D0%B5%D0%BE-5f-ajQe-LTc.html
Have you every calculated the difference btwn dropping your interest by .5% & refinancing and front-loading the interest again? I would think at this pt it’s actually costing your more interest by refinancing.
Hmmm - don't even understand what you mean - LoL. But in any event I did choose to refinance and am currently going through the process now. Will make a video about it.
@@FunandBudget essentially i was asking if you calculated the difference btwn the reduction of the interest rate you got thru refinancing and the amount you lost by refinancing and front loading your interest? which is what happens when you refinance. your interest resets meaning you pay majority of interest first and less of your actual monthly payment goes to the principle which is why both you maturity date and the amount you owe goes up. hopefully that makes sense
@@FunandBudget I didn't say where to invest, that's for you to decide. But the worst S&P 500's 15 year rolling average rate of return is 3.7%. Mortgage interest can have a tax deduction if you itemize. There is a reason Beyonce and Jay Z have a mortgage. :)
@@celock23 I believe she is indoctrinated into the Dave Ramsey edict that all banking is bad. That's fine if you are financially inept , reckless and full of liabilities, but that isn't the case here. After a certain point, banks become an ally and no longer your predators. But I do think she is leading by example and inspiring people to be smarter with their money.
