ON AIR WITH ELLA episode 319: the GOOD, the BAD, the YUMMY
Listen here (and everywhere you get podcasts):
the GOOD, the BAD, and the YUMMY
This is a regular feature where I share one thing that I'm loving, one thing I'm not, and one super simple, yummy recipe. This time, though, our "yummy" is the incredibly talent creator of "Healthy Vegan Eating," Javant. Get access to all of his recipes below.
1. GOOD: Switch your home loan from monthly to bi-weekly payments
This tip is an extremely simple life hack you can employ to improve your life today and save tens of thousands of dollars in the long run.
Pay your mortgage - your home loan - biweekly (meaning twice a month instead of once a month).
Why? By making bi-weekly payments, you effectively reduce the principal balance of your loan faster, which, in turn, decreases the total interest you'll pay over the life of the loan. See this simple example to compare the two scenarios...
- Loan Amount: $200,000
- Annual Interest Rate: 5%
- Loan Term: 30 years (360 months)
Scenario 1: Monthly Payments
If you make monthly payments on this loan, your monthly payment would be approximately $1,073. Over 30 years, you would make 360 payments, and the total interest paid would be approximately $186,512.
Scenario 2: Bi-Weekly Payments
In this scenario, you would make half of your monthly payment every two weeks. This means you would make 26 half-payments, which is equivalent to 13 full payments in a year. Each half-payment would be approximately $537.
Over 30 years, you would make 780 half-payments (26 payments per year for 30 years) and the total interest paid would be approximately $163,720.
$ The Bottom Line $
Scenario 1: Monthly Payments Total Interest Paid = $186,512
Scenario 2: Bi-Weekly Payments Total Interest Paid = $163,720
By making bi-weekly payments instead of monthly payments with a 5% interest rate, you could save approximately $22,792 in interest payments over the life of the loan. Additionally, you would pay off your mortgage sooner in scenario two.
NOTE: check with your lender to understand the terms and conditions of setting up bi-weekly payments. For me it was free, but other lenders may not do this, or may have specific procedures and fees associated with this payment option. And when you’re looking for a lender, always ask if they allow this and if they penalize you for early pay off.
BONUS TIP: Click here for info about a "loan recast."
2. BAD: Phone Etiquette
What is going on with people playing their phone and their videos, music, TikToks and phone calls on speaker?
Is it just me?
How do you handle this?
3. YUMMY: Healthy Vegan Eating creator Javant
Get Javant's healthy vegan recipes:
On his YouTube channel
My health journey began nearly 17 years ago. After a personal health scare I discovered the power of nutrition, lost 80 pounds, and continued eating my way to better health. Following many years of independent health study and research I decided to go back to school to become a dietitian, but after 2 years I became frustrated with the way that nutrition was taught and practiced, so I decided to take a different route to further deepen my understanding of nutrition and health, which ultimately led me to become a certified Nutritarian Cook and Coach.
About a year ago I started Healthy Vegan Eating as a platform to share health information and vegan recipes that empower others on their journeys toward improving their health. All of my recipes are organic, minimally processed and completely free of oil, wheat, refined-sugar, and rice.
I now have a thriving Instagram and YouTube cooking show where I share recipes and information. I am also launching a Meal and Fitness App this fall that will contain over 300 recipes, as well as many other resources to empower people on their journey to improving their health.
PROMO: My probiotic of choice - save 15%
I shared why I am obsessed with this supplement / probiotic for digestion, de-bloating and my skin in episode 292.
PS - I only take TWO a day and that works for me.
BONUS TIP: Loan Recast
If you ever have a chunk of money and you want to use it to pay down your mortgage and generate more equity in your home, do NOT simply make a large extra payment even if you are 100% certain they’re applying it to the principle.
Instead, if you’re making a payment any larger than a few thousand dollars then contact your lender and ask about a loan recast.
Essentially, a loan recast allows you to maintain your current interest rate and mortgage terms while significantly reducing your monthly payments by applying your lump sum toward the principal balance. So you get a reduction in your overall interest paid and it also allows you to steadily build home equity.
(I am no expert, but my understanding is that there isn't a fixed universal amount or percentage that triggers a loan recast, and the requirements can vary among lenders.)
A "loan recast" may be referred to by other terms depending on the context or the lender's terminology. Some alternative terms include:
1. Principal Reduction: Some lenders and financial institutions might use this term to describe the act of reducing the principal balance of a mortgage, which is the primary goal of a loan recast.
2. Loan Reamortization: Reamortization involves recalculating the loan payments based on the updated principal balance after making a lump-sum payment, which is essentially what a loan recast achieves.
3. Loan Modification: While "loan modification" is a more general term that can encompass various changes to a loan, it may also be used to describe the process of adjusting the loan's terms, including a recast.
4. Loan Restructuring: "Loan restructuring" can refer to various changes made to a loan, including a recast that adjusts the payment schedule.
It's important to note that while these terms are related to the concept of a loan recast, the specific details and procedures may vary from one lender to another. If you're interested in a loan recast or a similar adjustment to your mortgage, it's crucial to contact your lender or financial institution to understand their specific terminology and procedures.
Questions? Contact me
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