3422: Mortgage Prepayment Made Easy: Own Your Home in Half the Time by JD Roth of Get Rich Slowly

What It Covers

JD Roth explains his strategy to pay off a thirty year mortgage in fifteen years by making extra principal payments monthly alongside regular payments.

Key Questions Answered

• •Givens Method: Write a second check each month for next month's principal portion only. At 6.25% interest, paying $267 extra eliminates a $1,682 payment, achieving double progress at 16% normal cost.
• •Psychological Diversification: Prepaying a mortgage at 6.25% guaranteed return functions as portfolio diversification, comparable to bonds or CDs but with greater psychological benefit, especially approaching retirement when reducing fixed expenses matters most.
• •Financial Freedom Math: Eliminating a $1,400 monthly mortgage payment reduces fixed expenses to $600 monthly, creating flexibility to pursue opportunities that require lower income thresholds, even if investment returns would theoretically exceed mortgage interest rate.