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You're listening to Ramsey everyday millionaires where we talk investing, retirement, building wealth, and outrageous generosity. Well Rachel, we took a call about paying off the mortgage early and it's a fun conversation

to see what that money can turn into.

Oh yeah, invested versus just send in a regular old mortgage payment to the bank.

Yeah, and there's so many mortgage types out there and most of them are truly just

crap and they're meant to give more money to the banks and lenders and less money in your

pocket.

And so I want to take a look at an example of the 15-year mortgage,

which is the one we recommend, versus the 30-year mortgage,

to show people exactly what the numbers look like and not we're not going to get

super nerdy I'm not going to talk amortization schedules Rachel but I did

want to look at this graph from our blog article on the 15 verse 30 so we're

going to look at a 300 hundred thousand dollar house this is back in the day kids

Let's say you did 20 percent down on this three hundred thousand dollar house that's sixty thousand dollars

Trackin mhm that means'd get a mortgage for $240,000.

So let's look at that same mortgage on a 15 year and a 30 year.

And the blue, if you're watching on YouTube, is the mortgage loan. The orange is the amount of interest you pay.

So here's the shocking part. On a 15 year fixed rate loan with an interest rate of 3.5%,

the monthly payment is 1,700 bucks and the total

interest you pay is $69,000 if you just paid every single payment perfectly for 15

years. On the 30 year you're going to have a higher interest rate at 4%. Now the

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