 Our last exercise that we're going to take a look at is borrowing money to pay for a home loan. And the example we're going to take a look at is an actual example that I went through with an individual just a week or so ago. To paint the scenario, they are currently paying $125,000 as a mortgage. They have 7% of interest and the length of their mortgage is 30 years. So over that period of time, they're going to pay a total of $174,386 in interest and averages $500 a month. Their monthly payment is $831. The question I posed to them was, instead of paying it monthly, suppose we would go back and pay it bi-weekly, which means that over the course of the year, I would make one extra payment. I would make 13 payments instead of 12 payments. Just that simple change, leaving everything else the same, reduced their interest to $129,000. Or just simply paying it every other week instead of once a month over the course of the loan, they're going to save a total of $44,000. But we weren't quite finished yet because they looked at it and said, you know, there's better money out there right now than 7%. So I called my friend at the bank and he said, right now I can get you an interest rate that is 3.7%. And she would end up rolling the cost into the mortgage, which has been negligible. But if I go ahead and just calculate that, her payment now goes to $578 a month bi-weekly at $289. And now she only pays $70,000, which means that over the course of the loan, she'd save roughly $104,000. And then we made one more change. And I asked if she and her husband, what would happen if we changed it? Notice we're paying $578,000 at 30 years. If I change it to 15 years and I go through and do the recalculation, the payment goes to $909. So I asked them if they could go that high, what would happen is the total interest they would pay would be $34,000. Or over the course of the loan, they would save roughly $140,000. So the issue became they weren't sure they could do the $909,000. So somewhere is in between 15, maybe we could play with 20. But I would encourage you that if you're in a home ownership position right now, we're considering owning a home, the minimum that you should consider is paying for this house bi-weekly. And also be very concerned about how much interest you want to pay because there is less than 4% interest right now. And depending upon your credit rating, you could get as high as 8% as a percentage rate because of your inability to pay. But the other thing I would caution you on is we use 15 years. I'd like you to do two things. Look at what our payment would be at 15 years would be $909. So let's just make a mental note of that. But let's change this back to 30 years. And if I change it back to 30 years, my payment goes to $578. So it's roughly there's a $400 difference. But why would you ever want to consider doing it over 30 years where you're going to pay a little bit more interest than over 15 years? Well, what happens if you lose your job? What happens if somebody gets sick? So this would be my recommendation or an item for you to consider. I would leave my mortgage rate, my mortgage term at 30 years. But I would pay it at the 15 year rate if I could. I would overpay it and I would receive more interest. I would pay less interest. I would build up my equity faster. So that is a way to obtain an optimum payment schedule to reduce the amount of interest you're paying, but also to reduce the amount of risk should an unplanned, unforeseen item happen to you that might cause you to miss a house payment and might cause your house to go into closure. So again, this is available. I've got a worksheet. Can you click on the W at the bottom? There's a worksheet that's been who, what happened to it? There's a worksheet that is available that will list the different bank rates and stuff that is available to us. Click on one of those. They're pretty much self-driven. And as you go through your decision on how much to kind of afford, how much do I want to do, these calculators will help you to get there. And these are the only ones. There's other ones out also from other companies. So in conclusion, for our house mortgage, consider a couple of things. What's the lowest rate you can get? Pay your mortgage off by weekly if you can. In fact, if you wanted to, you could even pay it weekly. Just take your monthly payment and divide it by four and just pay that much every week. And you would again go through and reduce your rates. So go play with these numbers. See what they make sense to you, what makes sense to your family. And if you're looking to buy a house, make sure you use the mortgage calculator before you get there.