Mortgage pay off strategy.

[Jorge Diaz]

Hi there, I'm new to the community. If this questions has been answered I'd really appreciate you pointing me to the article as I didn't find a search box where I could search for it, that being said...

I recently attended a rich-dad " 3 days real state" seminar in Northern NJ. I must confess it was not worth the  $700 I paid for it, although I knew I was not going to become a real state "investor" simply by attending the seminar I was surprised by the whole thing being a giant sales pitch.. 

Anyhow, there was some useful general information that let me wanting to investigate further. The instructor talked about how to pay off your mortgage in a fraction of the time. He briefly explained how mortgage interest works and how by paying the exact amount going toward the principal on top of your monthly payment one can reduce the interest accrued on the loan, and by doing this every month one can "beat" the interest thus paying off the mortgage sooner. He said that sending more money on top of the monthly payment won't cut it as  the amount must be precised to each month's payment, because the total loan amount varies every month is turns into a challenges trying to find find what the final payment for the month would be.

Now he said all that and told us that they have developed a software that does all the calculations for us, of course in order for us to obtain it we needed to sing up for their classes starting at 15k. 

I have read multiple articles of people suggesting to pay the mortgage on the middle and end of the month by braking the monthly payment in two. Now, is that the "secret" everyone wants to sell or there's really a "science" behind pay off the mortgage sooner?

Thank in advance for your help.

[Steve Vaughan]

Certainly dont need to spend $15k on secret software to accelerste a mortgage.  Add $15k to your next payment and watch it fall by.... $15k. LOL

Mortgages need hard principal punches in the face to go away.  I've paid off plenty, but made sure there was a good reason, especially if you are in an expansion phase. Mine had high rates or were commercial and had calls, adjustable rates and bothered me for my financials every year. 

Yes, you can add however much principal to a payment you want. Doesn't have to be exactly double what is amortizing anyway. 

RDPD grows more disappointing to me every week. Doomsday market predictions, bad tax advice regarding 401ks, shady sales pitch seminars.  Should have stopped after writing the Cashflow Quadrant.