So we’ve been talking about taking your 30-year mortgage down to a 15 and some of you are thinking,
“That’s impossible, Rachel.” And I’m here to tell
you, anything’s possible if you believe, you guys! (laughing) So, I brought in Cole
here to share her story because she did this, she’s
like a true-life example of going from a 30-year
to a 15-year mortgage, and you did it, didn’t you? – Yes. – And I’d like to point out, too, you got a little bump—
(laughing) a little baby bump.
– Yes. – She’s pregnant! We
like babies around here. Okay how far along are you? – 36 weeks. – 36 weeks. Is it your first? – Yes. – Yes. – First. – First, first little one.
– Yes. – So fun, which makes this whole story I think even better because—
– Exactly. – This baby’s gonna experience
a 15-year mortgage house and not a 30-year, so. (laughing) – Exactly. (laughing) – Okay, so talk to me about
your home-buying process. – Okay.
– When was it that you first bought your
home, what was your situation, were you single, married?
Tell me everything. – I purchased my home in August of 2005. – Okay. – I closed on my house two weeks before I graduated from college, had roommates who helped pay my mortgage and everything. – So what made you buy a
house in college? I’m curious. – I didn’t want to rent and, you know, I had the down payment sitting there. – Yes.
– ‘Cause I worked full time the entire time I was in college and just kind of wanted that freedom away from home, away from renting. Like I said—
– You had money saved up for a down payment already. So what percentage, how
much did you have down? – I had five. – And you said okay, I’m
22, I’m gonna buy a house. So you bought the house, and you put it on a 30-year.
– It was a 30-year. – 30-year, okay. And so tell me about the
time when you looked up and you said, “Oh, I wanna
do something different, I really wanna refinance
and change to a 15-year.” – After the real estate market crashed and all the interest rates
went down so significantly and everybody was refinancing. Your interest rate will drop, refinance. So I thought, “Okay, why not?” Looked into it and said, hey, you know, what could I get, just at a lower rate? – Right.
– And she said, “Well, we can do a 15 at 2.3% of 2.5%. – 2.5% interest on 15-year. What was your 30-year? My 30-year was right at 7%. So almost a 5% difference
you guys in interest. I mean that’s amazing.
– It is. – That really is, and that may
not be the case for everyone, but you guys, if you do
refinance, your 15-year mortgage will have a lower
interest rate than your 30, maybe not 5%, but that’s amazing. – Right (laughing).
– That’s like Jesus is like, I’m gonna bless you today. – Exactly!
– That’s amazing. So great. – Exactly, so we went through the process and she said you know your
payment’s gonna be less and we’re gonna escrow
your taxes and insurance that way you don’t have to
worry about paying those. – So having an escrow account
it’s like a third party holding some of that in that.
Yeah, so you didn’t have that. – So the first seven years that I lived there–
– Yeah. – I was having to pay the
higher mortgage payment, that none of it was going to principal, plus the insurance, plus
the taxes out of pocket. – (laughing) Oh yes.
– So now I’m going to a lower payment and
all of it’s together. – So once you got to that 15-year, you were so motivated, right? – Exactly.
– I mean, you were like: “I can pay this, I can pay this quickly.” Especially since the payment was lower than your 30-year, which
may not happen, again, but still, (laughing), I
mean that’s part of the story which is just amazing. – Even if it’s a little more, you’re paying a lot less in interest over the time. If I had paid it, just the
payment over the 30 years, my house that I paid I think $116,000 for would have cost $240-something thousand dollars. I paid it off in $124,000 I think. – So you paid it off?
– In that 15-year. – Catch that you guys. You what? – Yes paid my house off,
paid my mortgage off. – (laughing) You have no payments at all? – No payments at all. – And how old are you? – I’m 35. – 35 years old! You guys, that’s, (laughing) I mean
seriously that’s amazing. At 22, that 30-year, if
you just stuck with it, you would have been 52 years old when your house was paid for, but not only did you refinance,
get a lower interest rate, get a lower payment, but you
kept paying aggressively on it, you paid it off by the time
you were, you’re how old again? – 35. – 35. Well Cole thank you so much
for sharing your story, seriously, it’s so inspiring you guys because it’s like okay, you can do this. You can go refinance your house, get it down to that 15-year mortgage, and, just like what Cole was saying, you get 15 and you’re like, well what if I pay it off sooner? And you keep being aggressive, pay it off where you have zero payments and your house is yours. So, I hope you guys are
motivated by Cole’s story ’cause I think it’s absolutely amazing and such a testament that you can do this if you just decide to, so.
– Absolutely. – So congrats girl.
– Thank you (laughing). – So proud of you. That’s
awesome, so awesome. (upbeat music)