Amy Poching

It's a very common scenario that people, because the easier option is to rent out your house than it is to sell your house.

Mm-hmm.

And so wherever people can, that's kind of the way that they like to go.

Well, funny you should ask, Luke, because I was just looking at this this morning.

Yeah.

So I was looking at a scenario where we've got a $500,000 mortgage at 5% and they're paying this down over 28 years.

Yeah.

Now, if they could put an extra $100 a week into that mortgage, they would pay it off eight years sooner and they would save themselves $123,000 in interest.

Probably like 200K.

Yeah.

And so I'm always going through these sorts of scenarios with people in terms of how they might be able to pay down their home mortgage sooner.

Because I think that everyone understands, like, of course, if we put more money into our mortgage, we're going to pay it off sooner and we're going to save money.

Everyone kind of gets that concept.

Yeah.

But it's not until you actually go through the exact numbers of your own situation that you go – because a lot of people might think, oh, don't really have an extra $100 a week.

But if they knew that it was going to result in them not having to pay their mortgage for an extra eight years and that they were going to be saving $123,000 a year in interest –

That often is the prompt to go, oh, well, actually, yeah, I reckon I can find a hundred bucks a week.

Where am I going to find that money?

So it's just having that knowledge so that then you can make informed decisions about where you choose to put your money.

Who's laughing now?