Clayton Morris - How to Pay Off Your Mortgage in 5 Years

How to Pay Off Your Mortgage in 5 Years

Also Available on Amazon and with other reputable book sellers.

Text copyright 2018 Clayton Morris and Natali Morris

Cover art copyright 2018 Clayton Morris and Natali Morris

All rights reserved.

No part of this publication may be reproduced or transmitted in any form or by any means, mechanical or electronic, including photocopying or recording, or by any information storage and retrieval system, or transmitted by email without permission in writing from the rights holders. Reviewers may quote brief passages in reviews.

Requests for authorization should be addressed to

235 Main St. #194

Madison NJ 07940

Interior layout and design by www.writingnights.org

Book preparation by Chad Robertson

Disclaimer and FTC Notice

While all attempts have been made to verify the information provided in this publication, neither the author nor the publisher assumes any responsibility for errors, omissions, or contrary interpretations of the subject matter herein.

This book is for entertainment purposes only. The views expressed are those of the authors alone, and should not be taken as expert instruction or commands. The reader is responsible for his or her own actions.

Adherence to all applicable laws and regulations, including international, federal, state and local governing professional licensing, business practices, advertising, and all other aspects of doing business in the US, Canada, or any other jurisdiction is the sole responsibility of the purchaser or reader.

Neither the author nor the publisher assumes any responsibility or liability whatsoever on the behalf of the purchaser or reader of these materials.

Any perceived slight of any individual or organization is purely unintentional.

Clayton and Natali are proud to announce the launch of our Financial Freedom Academy. If you are serious about taking control of your finances and ready to build financial freedom we invite you to join us here:

www.FinancialFreedomAcademy.com

Chances are you picked up this book because you own a house and youre tired of being a slave to your monthly mortgage payments. Youre tired of working hard and never seeing any progress in paying down that massive debt. If that sounds about right, then youve come to the right place.

This book can change your life.

We know that sounds dramatic but we also know that a mortgage is dramatic. Your mortgage is the thing that keeps you slaving away for a paycheck so that the bank does not claim its stake on your home. Your mortgage can be a cage but there are many ways to escape that cage and we want to teach you to think like an escape artist! We will help you find money you didnt know you had to get rid of money you didnt even know you owed.

When youre done reading this book youll learn the exact strategies and tactics we used to pay off multiple mortgages in a few short years, saving hundreds of thousands of dollars. Its a strategy that NO bank will tell you about!

What youre about to discover is our step-by-step system for taking your 15 or 30-year mortgage and turning it into a 5-year mortgage. Moreover, well teach you about the mechanisms behind the different banking products and how some are meant to keep you buried in debt for decades. Its how the banks win and you lose. Correction: its how the banks used to win and you used to lose. But no more!

Unlike those books that promise the world and fail to deliver, what youll get here is a blueprint thats both proven and achievable. Weve got three kids and careers to manage in our house so we know how valuable time is. You dont have time to spend knee deep in finance books that leave you cross eyed. What you needand what we will supplyis a straightforward plan that any busy person can implement to crush their primary mortgage.

Weve outlined the process into a step-by-step system you can follow no matter how busy you are. In less than two months you will have everything in place to start paying off your mortgage. Obviously, results may vary depending on a variety of factors like the amount of your mortgage, your salary, credit score, etc. Youll get the blueprint but implementation is up to you.

Before we get started, we want to invite you to dream about your life if you were mortgage free. How amazing would that feel!? How free would you be to travel, not worry about grocery bills, be more generous with your money! What would you do? What would that feel like!? Keep that wishful thinking in mind as you work towards that reality by freeing yourself of the biggest expense in your life! Lets talk about how!

T

he first step in beating your mortgage is to understand what its made of. In this chapter well break out the most important pieces without getting too deep in the weeds. The traditional mortgage is an octopus with multiple tentacles, some visible in plain sight and others hidden beneath the murky waters of the banking industry.

The first time we secured a mortgage, we assumed that the monthly payments were made up of all kinds of fees, taxes, bits and bobs. But if you look closely, it is not hard to see the anatomy of a mortgage. Lets break out some mortgage vocabulary to make sure you are crystal clear what we are talking about.

Principal: This is the amount you borrowed. You needed $100,000 to buy a home? Surely your loan statement will have a number higher than $100,000 because of closing costs, filing fees, etc.. Still $100,000 is the principal. It is the amount you asked the bank to give you.

Interest: We are going to discuss this in detail but in short: It is the amount of money you have agreed to pay in order to borrow the principal above. It is the rate of money for money. For every dollar you need to borrow, you will pay that dollar back plus an additional percentage of that dollar to the bank.

Equity: Equity is the amount of value in the house that belongs to you. If your home is worth $200,000 and you dont owe any money on it, then you have $200,000 worth of equity in the home. That value is yours. But if you owe $100,000 on that $200,000 home, your equity is $100,000. This means that if you sold the house tomorrow for $200,000, you would pay the bank back $100,000 and keep $100,000. The $100,000 that you keep is your equity.

Taxes and Insurance: You know what taxes are. You know what insurance is. (If you dont, youve picked up the wrong book.) You probably also know that when you secure a mortgage, you are obliged to pay for both taxes and insurance. Every property will be taxed and you must have insurance on your property for any lender to consider taking the risk of lending you money. Some lenders require that you add more money to your monthly payment so that they can keep it in an escrow account in order to pay the taxes and insurance for you. This adds to your monthly payment. We do NOT suggest you elect for one of these escrow accounts if given the choice. Some lenders do not give you the choice but instead require it. We will discuss this more later in this chapter.