average monthly payment for 250 000 mortgage

Monthly payment: $1,013.37. Report amortization: Annually. Monthly Interest rate: Annual interest rate for this mortgage. Office Depot has a warehouse with a 20-year mortgage of $250,000 at an annual interest rate of 9%. During a month when $1,650.33 of the monthly mortgage. For a 200000 mortgage, how much a month will you pay? With our mortgage calculator, it's never been easier to determine your monthly.
average monthly payment for 250 000 mortgage
average monthly payment for 250 000 mortgage

Mortgage Calculator: How to Calculate Your Monthly Payments

There are quite a few factors that go into the calculation of your mortgage expenses, but most homebuyers like to begin by determining their monthly payments and the lifetime cost of the mortgage. Calculating these two figures is a good first step toward understanding all of your other expenses.

How to Calculate Your Monthly Mortgage Payment

You can calculate your monthly mortgage payments using the following formula:

M = Average monthly payment for 250 000 mortgage [ I ( 1 + I )^N ] / [ ( 1 + I )^N – 1 ]

In order to find your monthly payment amount "M," you need to plug in the following three numbers from your loan:

  • P = Principal amount (the total amount borrowed)
  • I = Interest rate on the mortgage
  • N = Number of periods (monthly mortgage payments)

A good way to remember the inputs for this formula is the acronym PIN, which you need to "unlock" your monthly payment amount. If you know your principal, interest rate and number of periods, you can calculate both the monthly mortgage payment and the total cost of the loan. Note that the formula only gives you the monthly costs of principal and interest, so you'll need to add other expenses like taxes and insurance afterward.

Also keep in mind that most lender quotes provide rates and term information in annual terms. Since the goal of this formula is to calculate the monthly payment amount, the interest rate "I" and the number of periods "N" must be converted into a monthly format. This means that you must convert your variables through the following steps:

  1. Subtract your down payment amount from the home price to find the total borrowed "P"
  2. Divide your quoted annual interest rate by 12 to get your monthly interest rate "I"
  3. Multiply the number of years in your mortgage term by 12 to find the total number of monthly payments you will be making "N" – be careful not to confuse this with what the monthly payments will be, aka "M," which we will calculate later on

Once you've converted your inputs, you're ready to plug them into your formula. At this point, it becomes simple arithmetic. Make sure you have a calculator on hand walmart money card number help with the calculations. To illustrate how this might look with numbers from a typical mortgage, we've provided the following example.


Let's say you're trying to purchase a $250,000 home by taking out a 30-year mortgage with a 20% down payment. The mortgage lender offers you an interest rate of 5% for this loan.

To calculate your total borrowed amount "P," first subtract your 20% down payment from the $250,000 home price. This gives you a total borrowed amount of $200,000.

P = $250,000 – (20% of $250,000) = $250,000 - $50,000 = average monthly payment for 250 000 mortgage, to calculate your monthly interest rate, divide your annual interest rate of 5% by 12 to obtain your monthly interest rate "I." Remember to convert your mortgage rate into decimals before dividing, so that you don't end up with a figure one hundred times higher than it should be.

I = 5% divided by 12 = 0.05/12 = 0.004167

Finally, obtain your total number of monthly payments "N" by multiplying the total number of years in your loan by 12. Since the loan in our example has a 30-year term, this comes out to 360 months.

N = 30 years X 12 months = 360

In our example, the three PIN variables come out to the following:

Principal "P"200,000
Interest rate "I"0.004167
Number of periods "N"360

Substituting them into the original equation to solve for monthly payment "M," we get:

M = P [ I ( 1 + I )^N ] / [ ( 1 + I )^N – 1 ]

M = 200,000 * [ 0.004167 ( 1 + 0.004167)^360 ] / [ ( 1 + 0.004167 )^360 – 1 ]

M = 200,000 * [ 0.004167 ( 1.004167 )^360 ] / [ ( 1.004167 )^360 – 1 ]

M = 200,000 * [ 0.004167 * 4.468278 ] / [ 4.468278 – 1 ]

M = 200,000 * 0.018618 / 3.468278

M = 200,000 * 0.005368

M = 1,073.64

Keep in mind that rounding may have a slight impact on your final answer for the monthly payment; your calculation may differ by a few dollars. As stated above, this formula doesn't account for any ongoing taxes or insurance premiums, and only accounts for your monthly mortgage payment. If you want to know the full estimate of your mortgage costs, you'll need average monthly payment for 250 000 mortgage calculate the total cost of your mortgage loan, as shown below.

How to Calculate the Total Cost of Your Mortgage

Once you have your monthly payment amount, calculating the total cost of your loan is easy. You will need the following inputs, all of which average monthly payment for 250 000 mortgage used in the monthly payment calculation above:

  • N = Number of periods (number of monthly mortgage payments)
  • M = Monthly payment amount, calculated from last segment
  • P = Principal amount (the total amount borrowed, minus any down payments)

To find the total amount of interest you'll pay during your mortgage, multiply your monthly payment amount by the total number of monthly payments you expect to make. This will give you the total amount of principal and interest south seattle food bank you'll pay over the life of the loan, designated as "C" below:

  • C = N * M
  • C = 360 payments * $1,073.64
  • C = $368,510.40

You can expect to pay a total of $368,510.40 over 30 years to pay off your whole mortgage, assuming you don't make any extra payments or sell before then. To calculate just the total interest paid, simply subtract your principal amount P from the total amount paid C.

  • C – P = Total Interest Paid
  • C – P = $368,510.40 - $200,000
  • Total Interest Paid = $168,510.40

At an interest rate of 5%, it would cost $168,510.40 in interest to borrow $200,000 for 30 years. As with our previous example, keep in mind that your actual answer might be slightly different depending on how you round the numbers.

How to Account for Closing Costs

Once you've calculated the total principal and interest expense on your mortgage, factoring in closing costs or fees will be straightforward. Since closing costs are paid in full when you close on the loan, you can simply add them to your overall loan cost without using any long formulas. Some examples of upfront closing costs include the following:

  • Mortgage lender fees
  • Third-party mortgage fees
  • Prepaid mortgage costs

While there may be other categories of upfront fees, the process for calculating them remains the same: Just add them to the total cost of the mortgage loan. Keep in mind that this will exclude any added monthly expenses paid in escrow, like taxes or homeowner's insurance. Our next section explains how to factor in monthly expenses.

How to Account for Taxes and Recurring Expenses

Accounting for recurring charges like PMI and HOA fees requires a little more work, but even these aren't very difficult to calculate. You can find the total cost of recurring expenses by adding them together and multiplying them by the number of monthly payments (360 for a 30-year mortgage). This will give you the lifetime cost of monthly charges that exclude the cost of your loan.

The reverse is true for annual charges like taxes or insurance, which are usually charged in a lump sum, paid once per year. If you want to know how much these expenses cost per month, you can divide them by 12 and add the result to your mortgage payment. Most mortgage lenders use this method to determine your monthly mortgage escrow costs. Lenders collect these additional payments in an escrow account, typically on a monthly basis, in order to make sure you don't fall short of your annual tax and insurance obligations.

What Other Expenses Does Homeownership Entail

It's important to recognize that the estimated total cost of your home purchase is only an estimate and not necessarily representative of future conditions. There are many factors that are not taken into account in the calculations we illustrated above; we include a few below for your consideration.


While these fixed fees are charged regularly, they have a tendency to change over time, especially in large metropolitan areas like New York and Boston. New-home purchases often have their values reassessed within a year or two, which impacts the actual taxes paid. For that reason, your originally forecasted tax liability may increase or decrease as a result of new assessments.

HOA Dues

For buyers considering condos, homeowners associations can increase their monthly dues or charge special HOA assessments without warning. This can make up a large portion of your housing expenses, especially in large cities with high maintenance fees. You might also be subject to increased volatility in HOA fees if the community you live in has issues keeping tenants or a troubled track record.

Market Risk

The housing market varies by region and is cyclical, much like the stock market. There's always the risk of market value movements and insurance costs that might change over time. While real estate has always been considered one of the safest of investments, there's always a possibility that your home value will drop below the amount you paid for it. These risks are difficult to quantify but should be considered carefully before purchasing a home.

Maintenance Costs

Finally, typical mortgage expenses don't account for other costs of ownership, like monthly utility bills, unexpected repairs, maintenance costs and the general upkeep that comes with being a homeowner. While these go beyond the realm of mortgage shopping, they are real expenses that add up over time and are factors that should be considered by anyone thinking of buying a home.

Calculating ARMs, Refinances and Other Mortgage Types

The equations that we've provided in this guide are intended to help prospective borrowers understand the mechanics behind their mortgage expenses. These calculations become more complicated if you're trying to account for ARMs or refinances, which call for the use of more specialized calculators or spreadsheet programs. You can better understand how these loan structures work by referring to one of our guides about mortgage loans below:

Источник: https://www.valuepenguin.com/mortgages/mortgage-payments-calculator
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Mortgage Calculator

Use our mortgage calculator to help you estimate your monthly payments and what you can afford. Buying a house is the largest investment of your lifetime, and preparation is key. With our home loan calculator, you can play around with the numbers including the loan amount, down payment, and interest rate to see how different factors affect your payment.

Knowing what you can afford is the first step in buying a home. It puts you well ahead of the competition. You can talk to lenders and understand the numbers they throw at you and know what you're comfortable paying each month.

Buying a home and taking out a mortgage isn't just about the interest rate – it's about the big picture. Use our mortgage calculator to see that big picture so you know what you're getting into since a mortgage is a long-term commitment, sometimes as long as 30 years.


What is a mortgage?

A mortgage is a loan you take out to buy a home. Lenders base your eligibility on your credit score, current debts, money saved, and the home's value. The difference between a mortgage and a standard loan, besides the loan amount, is the collateral. Lenders use your house as collateral. If you default on your payments (usually more than 90 days), they can foreclose on your property. The bank then takes the home and sells it to make back the money lost from you not making your payments.

What is mortgage insurance?

Mortgage insurance is insurance for the lender. Borrowers pay it, but it is for the lender if you default on the loan. Conventional loans require mortgage insurance if you put down less than 20% on the home. You can cancel it once you pay your balance down to 80% of the home's value.

Government loans, including FHA and USDA loans, charge mortgage insurance for the life of the loan, but at a rate lower than conventional loans. Mortgage insurance helps borrowers secure a loan when they don't have great credit or don't have much money to put down on the home.

How to calculate a mortgage payment?

Your mortgage payment includes principal, interest, mortgage insurance, real estate taxes, and homeowner's insurance. The principal is the amount you borrow. The interest is the fee the bank charges. You can figure out the monthly amount by taking the annual interest rate (rate quoted) and dividing it by 12. Multiply that number (your monthly interest rate) by the outstanding principal balance to get your interest charges.

The mortgage payment is the principal (the portion you'll pay) plus the monthly interest, 1/12th of the real estate taxes, 1/12th of the home insurance, and the required mortgage insurance (if applicable).

How much mortgage can I afford?

Lenders determine how much mortgage you can afford based on your income, credit score, and current debts. Each situation is different but in general, lenders allow up to a 43 – 50% debt-to-income ratio. Your mortgage (principal, interest, real estate taxes, home insurance, and mortgage insurance) plus any existing debts, such as credit cards, car loans, or personal loans shouldn't exceed 43% - 50% of your gross monthly income (income before taxes).



A mortgage is a loan you borrow to buy a home. It includes the principal, interest, and required mortgage insurance. Some lenders also require you to include your real estate taxes and home insurance in the payment. You use the mortgage in addition to your down payment to buy a home.

Mortgage Calculator

A mortgage calculator can help you determine how much house you can afford and estimate your payments. It's a great tool to use before you shop for a house or before you refinance. See what your monthly payments would be and how different factors affect it.

Purchase Price

The purchase price is the price you agree to pay for a house with the seller. Whether the seller accepts your first offer or you go back and forth, the purchase price is the final number you agree on and that is written on your sales contract. Lenders use this number as a baseline when determining your mortgage amount.

Down Payment

The down payment is the money you invest in the home. You'll need at least 3.5%, but sometimes more. You base the down payment on the purchase price. For example, if your purchase price is $100,000, a 3.5% down payment would be $3,500 and a 20% down payment would be $20,000.

Interest Rate

The interest rate is the fee the lender charges monthly until you pay the loan in full. They quote you an annual interest rate, but you can figure out the monthly rate by dividing the annual rate by 12. As you pay your principal balance down, you'll pay less interest. You can check today's mortgage rates on our website.

Mortgage Term

The mortgage term is the time you have to pay the loan back. Most borrowers take out a 30-year or 360-month term, but there are other options including a 10, 15, and 20-year term. The less time you borrow the money, the lower the interest rate a lender will charge.

Start Date

The start date is the date of your first payment. It's not the date you take out the mortgage. You pay interest in arrears, so your first payment will be the month following the month after you close on the loan. For example, a loan closed on January 15 would have its first payment on March 1st.

Property tax

All US counties charge property tax. You can find out the amount by visiting the county assessor's website. The property taxes are a percentage of your home's assessed value. Many mortgage lenders require you to pay your taxes monthly with your mortgage payment to make sure they are paid.

Property insurance

Property insurance is required by lenders. It insures you against financial loss but also protects the lender. If you couldn't afford to renovate the home or build it again after a fire, the lender would have a total loss. Property insurance protects both parties.


PMI stands for Private Mortgage Insurance and only applies to conventional loans. If you put down less than 20% of the purchase price, the lender will require PMI until you owe less than 80% of the home's value. If you default on your loan (for over 90 days), the lender can make a claim with the insurance company, foreclose on your home, and get back a portion of the amount they lost.

Источник: https://www.mlcalc.com/

I have a $250,000 mortgage, with 24 years left on the loan. Should I sell stock to pay off the mortgage before I retire in a few years?

Should I pay off the mortgage now, or wait until I retire after 67?


Waiting to average monthly payment for 250 000 mortgage Waiting,

“Should I pay off my mortgage in full?” is one of those all-time, classic questions up there with “Who’s on first?” and “Wherefore art thou Romeo?”

I say this not to poke fun at you or your situation, but to drive home how common a question this is. Indeed, you’re not the only reader who has written me recently asking some variation of this query. I polled financial planners to get their take on this age-old quandary, and time and again they told me that they have clients dealing with this very issue, especially as they’re staring down retirement.

The common wisdom with previous generations was to avoid retiring with any debt. But boy, have the times changed. “Historically, it was taboo to go into retirement with debt, but that made sense when you had mortgages with rates upwards of 7% or 14%,” said Marianela Collado, CEO and senior wealth advisor with Tobias Financial Advisors, a wealth management firm based in South Florida.

We don’t live in a world with interest rates that high. Even though your mortgage rate isn’t below 3% — where the average rate on a 30-year fixed-rate mortgage now sits — it’s practically chump change compared to a few decades ago.

When deciding whether to pay off your mortgage ahead of schedule, it’s important to go about the decision as rationally as possible. There is almost certainly going to be an emotional benefit to ridding yourself of such a large monthly payment and not having a debt obligation to worry about. But it’s not necessarily the most financially prudent route.

Like many people considering this move, you’re thinking of dipping into your investments and savings to do so. If the stocks you’re invested in are performing anywhere close to the S&P 500 SPX, they’re netting a return of 10% a year on average most likely — if not better.

Here’s where you need to consider the opportunity costs of this move. If you pay off that $250,000, you’ll save upwards of $100,000 in interest, not accounting for any prepayment penalty you might incur. But you’d be missing out on a potential return as high as $1.7 million, presuming a 10% rate of return, on the investments you would cash out to pay off the mortgage.

“Using savings to pay off a mortgage ahead of schedule could mean forgoing thousands of dollars in earning potential.”

Plus once you’ve sunk that money into your home, you can’t use it for other potential needs without taking out a line of credit or reverse mortgage or selling the home.

“With interest rates so low, paying a mortgage with a low rate means more of your capital can be freed up to invest,” said Bradley Lineberger, president of Seaside Wealth Management in Carlsbad, Calif. “A solid investment portfolio should easily outpace whatever the interest rate savings would be by paying off the note.”

Of course, the answer is different if cash flow is currently an issue, or if you expect it to be one in retirement. Because you have a pension you can count on, that might not be south florida state college panther central case. But if you find yourself scrimping each month after your mortgage payment is made — or if you’re worried about your ability to make ends meet in retirement — you may want to consider using your investments to pay the loan off. Doing this would allow you to live more comfortably with a lower fixed income, if need be.

I should add that in reality your situation isn’t an either-or question. You have more options at your disposal than simply paying the loan off in full or maintaining the status quo.

Given that your current rate is higher than the prevailing rates in the market right now, you may even want to consider refinancing your mortgage. You could potentially refinance into a mortgage with a shorter term, such as a 15-year loan, without increasing your monthly payment. This way, you’d save on interest and pay off the loan more quickly.

You could also pursue a mortgage recast if your lender or servicer allows it. With a mortgage recast, a homeowner makes a large lump-sum payment toward their loan’s principal balance. After doing so, the lender recalculates the amortization of the loan. So your monthly payment would be lower, though the interest rate and duration of the loan would be the same.

Recasting a mortgage is less expensive than a refinance and doesn’t require a credit average monthly payment for 250 000 mortgage or appraisal. Be aware though that the lender may charge a fee to do this, and not all homeowners qualify. If it is an option available to you, though, it might be a great way of finding a middle path between the options you are considering.

Источник: https://www.marketwatch.com/story/i-have-a-250-000-mortgage-on-my-home-with-24-years-left-on-the-loan-should-i-pay-it-off-before-i-retire-in-a-few-years-11629916366

Mortgage Calculator: Estimate Your Monthly House Payments

A mortgage is often a necessary part of buying a home, but it can be difficult to understand what you’re paying for—and what you can actually afford. A mortgage calculator can help borrowers estimate their monthly mortgage payments based on the purchase price, down payment, interest rate and other monthly homeowner expenses.

How to Calculate Mortgage Payments Using Our Calculator

Whether you’re shopping around for a mortgage or want to build an amortization table for your current loan, a mortgage calculator can offer insights into your monthly payments. Follow these steps to use the Forbes Advisor mortgage calculator:

1. Enter the home price and down payment amount. Start by adding the total purchase price for the home you’re seeking to buy on the left side of the screen. If you don’t have a specific house in mind, you can experiment with this number to see how much house you can afford. Likewise, if you’re considering making an offer on a home, this calculator can help you determine how much you can afford to offer. Then, add the down payment you expect to make as either a percentage of the purchase price or as a specific amount.

2. Enter your interest rate. If you’ve already shopped around for a loan and have been offered a range of interest rates, enter one of those values into the interest rate box on the left. If you haven’t prequalified for an interest rate yet, you can enter the current average mortgage rate as a starting point.

3. Choose a loan term. To help calculate your monthly mortgage payment, enter a loan term up to a maximum of 30 years. Keep in mind that if you haven’t already been approved for a loan term and interest rate, the rate you select here should correspond with i ll pray for you lyrics average rate you entered above. For example, if you choose a 15-year term, also use the average rate for 15-year mortgages. If, instead, you’re trying to strike a balance between low monthly payments and a shorter term, you can use this portion of the calculator to compare your options.

4. Add in taxes, average monthly payment for 250 000 mortgage and HOA fees. This portion of the calculator is optional, but it can help give you a more accurate picture of your potential monthly payments. If you have the information available, plug in your monthly property tax, private mortgage insurance (PMI), homeowners insurance and homeowners association (HOA) fees. If you don’t have these numbers in front of you, some information may be available through your real estate agent or your local property assessor’s website.

5. Review your loan details. Once you enter all of the relevant information on the left side of the screen, the calculator will auto-populate your payment breakdown on the right. This portion of the calculator lets you view your monthly payments as well as your estimated payoff month. Navigate to the amortization schedule tab to view how much of your annual payments will go toward interest and principal. You can also toggle between the annual and monthly view to see a breakdown of each monthly payment.

Decoding Your Mortgage Costs

If this is your first time shopping for a mortgage, the terminology can be intimidating. It also can be difficult to understand what you’re paying for—and why. Here’s what to look for when reviewing your mortgage costs:

  • Principal. Principal is the amount of money you borrowed on the mortgage. A portion of each payment will go toward paying this off, so the number will go down as you make monthly payments.
  • Interest rate. This is essentially what the lender is charging you to borrow the money. Your interest rate is expressed as a percentage and may be fixed or variable.
  • Property taxes. Property taxes are imposed by your local tax authority. This number can usually be viewed on your recorder or assessor’s website—wherever you access property cards and other real estate records.
  • Homeowners insurance.Homeowners insurance is required to protect you and your lender in the case of damage to your home. If you’re considering a home, ask the real estate agent if they have any information about current insurance costs. Otherwise, contact your local insurance agent to get a quote.
  • Mortgage insurance. Also known as private mortgage insurance—or PMI—this protects the lender in case you default on your mortgage. It typically ranges from 0.58% to 1.86% of your total mortgage amount and you will need to factor this in if your down payment is less than 20%.

How Much House Can You Afford?

How much house you can afford depends on several factors, including your monthly income, existing debt service and how much you have saved for a down payment. When determining whether to approve you for a union savings bank com mortgage amount, lenders pay close attention to your debt-to-income ratio (DTI), which is a comparison of your total monthly debt payment to your monthly pre-tax income. In general, your monthly housing costs shouldn’t be more than about 28% of your income, though you may be approved with a higher percentage.

Keep in mind, however, that just because you can afford a house on paper doesn’t mean your budget can actually handle the new payments. Beyond the factors your bank considers when pre-approving you for a mortgage amount, consider how much money you’ll have on-hand after you make the down payment. It’s best to have at least three months of payments in savings in case you experience financial hardship. Also calculate how much you expect to pay in maintenance and other house-related expenses each month.

Likewise, when determining how much house you can afford, consider your other financial goals. For example, if you’re planning to retire early, determine how much money you need to save or invest each month and then calculate how much you’ll have leftover to dedicate to a mortgage payment. Ultimately, the house you can afford depends on what you’re comfortable with—just because a bank pre-approves you for a mortgage doesn’t mean you should maximize your borrowing power.

Choosing the Mortgage Term Right for You

A mortgage term is the length of time you have to pay off your mortgage—stated another way, it’s the time span over which a mortgage is amortized. The most common mortgage terms are 15 and 30 years, though other terms also exist and may even range up to 40 years. The length of your mortgage terms dictates (in part) how much you’ll pay each month—the longer your term, the lower your monthly payment.

That said, interest rates are usually average monthly payment for 250 000 mortgage for 15-year mortgages than for 30-year terms, and you’ll pay more in interest over the life of a 30-year loan. To determine which mortgage term is right for you, consider how much you can afford to pay each month and how quickly you prefer to have your mortgage paid off.

If you can afford to pay more each month but still don’t know which term to choose, it’s also worth considering whether you’d be able to break even—or, perhaps, save—on the interest by choosing a lower monthly payment and investing the difference.

How Forbes Advisor Estimates Your Monthly Mortgage Payment

Forbes Advisor’s mortgage calculator makes it easy to estimate your monthly mortgage payment using your home price, down payment and other loan details. Based on that information, it also calculates how much of each monthly payment will go toward interest and how much will cover the loan principal. You can also view how much you’ll pay in principal and interest each year of your mortgage term.

To make these calculations, our tool uses this data:

  • Home price. This is the amount you plan to spend on a home.
  • Down payment amount. The amount of money you will pay to the sellers at closing. This amount is subtracted from the home price to determine the amount you’ll be financing with the mortgage.
  • Interest rate. If you’ve already started shopping for a mortgage, enter the interest rate offered by the lender. If not, check out the current average mortgage rate to estimate your potential payments.
  • Loan term. The loan term is the length of the mortgage in years. The most popular terms are for 15 and 30 years, but other terms are available.
  • Additional monthly costs. In addition to principal and interest, the calculator considers costs associated with property taxes, private mortgage insurance (PMI), homeowners insurance and homeowners association fees.

Frequently Asked Questions (FAQs)

How does a mortgage work?

A mortgage is a secured loan that is collateralized by the home it is financing. This means that the lender will have a lien on your home until the mortgage is paid in full. After closing, you’ll make monthly payments—which covers principal, interest, taxes and insurance. If you default on the mortgage, the bank will have the ability to foreclose on the property.

How do you apply for a mortgage?

Mortgages are available through traditional banks and credit unions as well as a number of online lenders. To apply for a mortgage, start by reviewing your credit profile and improving your credit score so you’ll qualify for a lower interest rate. Then, calculate how much home you can afford, including how much of a down payment you can make. When you’re ready to apply, compile necessary documentation like income verification and proof of assets and start shopping for the best rates.

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2 Replies to “Average monthly payment for 250 000 mortgage”

  1. Are you saying that charging 27-75$ for a 5000$ electronic transfer is "too good to be true"? I've personally used all 3 services mentioned in the video and never had any issues.

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