What you don't know about your mortgage is costing you a fortune.

1. “The True Cost of Your Mortgage Debt”
Part One
What You Don’t Know is Costing You a
Fortune

2. When you agreed to this:
$200,000
at 6%
for 30 years
Monthly principal and interest payment of
$1199.10

3. so you could buy this,

4. did you know that you agreed to all this:

5. In the first year of your mortgage,
you will pay a total of $14,389.20.

6. Of that $14,389.20,

7. Of that $14,389.20,
$11,933.13 goes to interest.
(the bank’s profit)

8. And of that $14,389.20,
how much benefits your family?

9. And of that $14,389.20,
how much benefits your family?
$2,456.02

10. Of the first twelve mortgage payments you make...

11. Of the first twelve mortgage payments you make...
...only 2 benefit you.

12. Of the first twelve mortgage payments you make...
...only 2 benefit you.
The other 10 pay for interest.

13. Of your $48,000 gross annual income,
$4,000/month
$1,000/week

14. Almost 3 full months...
will go to pay just the interest on your home loan.

15. Almost 3 full months...
will go to pay just the interest on your home loan.
That’s after the IRS takes their share.

16. 25% of your total annual income
pays for mortgage interest.

17. It gets worse.

18. Your monthly payment of $1199.10
x 30 years

19. Your monthly payment of $1199.10
x 30 years
= $431,676.00

20. By the time you pay off our home,
you will have spent enough money...
$431,676.00

21. By the time you pay off our home,
you will have spent enough money...
$431,676.00
...to buy 2 homes
$200,000 $200,000

22. By the time you pay off our home,
you will have spent enough money...
$431,676.00
...to buy 2 homes
$200,000 $200,000
and a car.
$31,000
+/-

23. You only borrowed $200,000.00

24. You only borrowed $200,000.00
But you will pay $231,676.00 interest

25. You only borrowed $200,000.00
But you will pay $231,676.00 interest
That’s not 6%.

26. So what interest rate are you really paying?

27. $231,676 ÷ $200,000 =
116%

28. Here’s why:

29. Of your $1199.10 monthly payment:
Equity/You Interest/Bank
Month 1 $199.10 $1000

30. Of your $1199.10 monthly payment:
Equity/You Interest/Bank
Month 1 $199.10 $1000
Month 2 $200.10 $999

31. Of your $1199.10 monthly payment:
Equity/You Interest/Bank
Month 1 $199.10 $1000
Month 2 $200.10 $999
Month 3 $201.10 $998
you’re building equity by only $1 a month

32. Of your $1199.10 monthly payment:
Equity/You Interest/Bank
Month 1 $199.10 $1000
Month 2 $200.10 $999
Month 3 $201.10 $998
Month 4 $202.10 $997
you’re building equity by only $1 a month

33. Of your $1199.10 monthly payment:
Equity/You Interest/Bank
Month 1 $199.10 $1000
Month 2 $200.10 $999
Month 3 $201.10 $998
Month 4 $202.10 $997
Month 5 $203.11 $995.99
you’re building equity by only $1 a month

34. Of your $1199.10 monthly payment:
Equity/You Interest/Bank
Month 1 $199.10 $1000
Month 2 $200.10 $999
Month 3 $201.10 $998
Month 4 $202.10 $997
Month 5 $203.11 $995.99
Month 6 $204.13 $994.97
you’re building equity by only $1 a month

35. So little of your payment helps you each month,
it’s like you’re renting.

36. So little of your payment helps you each month,
it’s like you’re renting.
And it doesn’t get much better as the years go by...

37. Of your $1199.10 monthly payment:
Equity/You Interest/Bank
Month 12 $210.33 $988.77

38. Of your $1199.10 monthly payment:
Equity/You Interest/Bank
Month 12 $210.33 $988.77
Month 60 $267.22 $931.88

39. Of your $1199.10 monthly payment:
Equity/You Interest/Bank
Month 12 $210.33 $988.77
Month 60 $267.22 $931.88
Month 120 $360.44 $838.66

40. Pop Quiz
Q). How many years will it take to pay your
$200,000 mortgage in half?

41. Pop Quiz
Q). How many years will it take to pay your
$200,000 mortgage in half?
(Remember, you have a 30 year loan.)

42. Pop Quiz
Q). How many years will it take to pay your
$200,000 mortgage in half?
(Remember, you have a 30 year loan.)
A). 21 years.

43. Pop Quiz
Q). At year 21, how much interest have you paid the
bank?

44. Pop Quiz
Q). At year 21, how much interest have you paid the
bank?
A). $202,050.00

45. Pop Quiz
Q). At year 21, how much interest have you paid the
bank?
A). $202,050.00
More than 100% interest.

46. Which means:
By the time you own just 1/2 your home free and clear,

47. Which means:
By the time you own just 1/2 your home free and clear,
the bank has made so much profit on your home loan,

48. Which means:
By the time you own just 1/2 your home free and clear,
the bank has made so much profit on your home loan,
they can buy their own house...
$200,000

49. Which means:
By the time you own just 1/2 your home free and clear,
the bank has made so much profit on your home loan,
they can buy their own house...
...with cash.
$200,000

50. Let’s review.
Your 6% loan costs you:
$231,677
116%
25% of your annual income
3 months of work
A home and car for the bank.

51. Not exactly the picture of financial health is it?

52. Not exactly the picture of financial health is it?
(Unless you’re the bank)

53. No matter what type of home loan you have...
30 year mortgage
15 year mortgage
Adjustable rate
Interest only
Negative amortization

54. ...you are in the business of making your bank
a lot of money.

55. But you don’t have to be.

56. Imagine...

61. ...financial freedom.

62. Totally doable.

63. Next:
“The True Cost of Your Mortgage Debt”
Part Two
Why Refinancing
Usually Makes Things Worse.
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