I paid off my home in 10 years 2 months.. Threw in any extra money I got, OT from work, tax refund, etc.. But of course I got my home for $154,000 in 2011.
This video is interesting . Listened to your video in its entirety. Sounds just moving debt around. I have paid down 60% of my 3% mortgage by paying additional principal payments working two jobs and watching my spending.
Hello! It's great to hear that you've been dedicated to paying down your mortgage by making additional principal payments. It sounds like you've been putting in a lot of hard work to reduce your debt. Our strategy might seem like it's just moving debt around, but it's really about optimizing your cash flow to reduce interest payments and payoff time significantly, without needing to increase your income or cut expenses drastically. This approach uses a banking product to accelerate the mortgage payoff by leveraging the flow of your money. While it's true that you're managing different debts, the strategic movement and management of your money with our method can potentially save much more in interest and time compared to traditional methods. If you’d like to explore how this could work for you potentially even more efficiently, considering you've already paid down a significant amount of your mortgage, you might find our detailed webinar insightful. Check it out at acceleratedbanking.com/webinar-registration?sl=youtube for a comprehensive explanation on how all of this comes together.
@@TheKwakBrothers Can you elaborate on this statement please "...without needing to increase your income or cut expenses drastically". How is it possible that one accelerate mortgage payment without having to put "extra principal" paydown aka increase your income or cut expense. The money to pay off the mortgage has to come from somewhere.
I'm not sure you should put your extra money into avoid paying interest at 3%. If you put all that extra funds into investing, couldn't you earn 7% at the least? Do the math on how much you'll save paying down the interest vs. how much you'd earn investing the same amount of extra cash.
@@bluegorillacookies I also invest monthly into my brokerage account, At the end of the day , I need a house to live in!!! Paying off my house is the biggest financial flex ever!!!’ I can live in a house & pay my taxes/insurance/maintenance with my brokerage money. But I can’t live in brokerage account and I refuse to live in an apartment where my landlord can fail to renew my lease just because!!!!
I am sorry I'm saying this out loud, but it fascinates me of the questions being asked and people who are obviously not in the industry trying to outsmart this guy! 😜
We paid $64,900 for our 1632 sq ft 3 bedroom 2 bath home in 21, I'm doing just fine overpaying the principal every month starting with $30 a month, then by by $40 a month, Already knocked almost 7 years off the life of the mortgage in 3 years. Next COLA it goes up another $10 a month To $50. My principal on my mortgage is only $125 a month. Already paying way more into principal than interest which is at 2.875%. And it's free, doesn't threaten my house. Wouldn't make sense taking out a HELOC that's double what my current mortgage rate is.
Glad you enjoyed the content! A second-position HELOC generally involves simpler appraisals and a repayment period followed by a 10-year draw period. With a first position, it's more like a traditional mortgage, often requiring a full appraisal and can have a draw period of 10-30 years. Chunking can reduce your mortgage balance faster by making principal-only payments. For detailed comparisons, check out this video: ru-vid.com/video/%D0%B2%D0%B8%D0%B4%D0%B5%D0%BE-Xi75OPeNwfI.html.
If you have $12000 in income and $7000 in expenses where is the calculation comparing just paying $5000 off the mortgage each month vs using the HELOC?? Why not save all the HELOC interest??
Great question! Direct extra mortgage payments are a one-way street; once made, you can’t access that money again. With our strategy, you can put your $5,000 income into the HELOC to reduce the balance, then reuse it for expenses, maintaining flexibility. This method allows for quicker principal reduction and potentially more interest savings. For a detailed breakdown, check out this video: ru-vid.com/video/%D0%B2%D0%B8%D0%B4%D0%B5%D0%BE-Xi75OPeNwfI.html.
@@TheKwakBrothers My point was if you have $5000/month in positive cash flow and you have access to a $20000 HELOC why incur the HELOC interest cost? Just pay down the mortgage by $5k/month and keep the HELOC for flexibility and unexpected expenses if they come up.
@@TheKwakBrothers I have the same exact question as the other poster. If you have $5000/month in positive cash flow and you have access to a $20000 HELOC why incur the HELOC interest cost? Just pay down the mortgage by $5k/month and keep the HELOC for flexibility and unexpected expenses if they come up.
@@hdarmawan Because it will take 4 months to pay down $20k to mortgage with $5k/month(thus more interest), but $20k pay down to principal right away with HELOC so your 1st month interest is calculated based on current principal minus $20k instead of -$5k(1st month), -$10k(2nd),-$15k(3rd), -$20k(4th). It's basically like if you have $20k cash and put it all in principal every 4 months instead of $5k per month, only difference is $20k cash is HELOC and has high interest but much lower principal($20k vs $500k mortgage for example), so It might be justified depending on how much positive cash flow you have each month.
Wow can't believe I didn't know about this. Learning so much from you guys, thank you. Can you just help clarify 1 thing? Which strategy would save more in interest and by how much? 1) pay an extra $1000 each month into the mortgage for 12 months? Or 2) borrow 12k from my heloc, dump it into my mortgage, dump my pay into heloc biweekly, take out money from heloc to pay my bills. Reduce my balance by 1k a month (cash flow). Rinse and repeat yntil 12k heloc is paid off. I did some calculations and the difference in the interest saved is negligible. Maybe I am doing something wrong? Any help would be appreciated.
It's great to hear that you're finding value in learning about these strategies! To clarify your question on which option might save more in interest: Option 2, which involves utilizing a banking product like a HELOC, may potentially save you more in interest compared to just making an extra $1000 payment into your mortgage each month. This difference comes from the flexibility offered by the banking product, allowing you to use your income to reduce the balance quickly and repeat the process as you mentioned. This strategy takes advantage of the fact that interest on such banking products is calculated daily on the outstanding balance, which can be reduced faster if you deposit your paycheck into the HELOC and only withdraw what you need for expenses. This can lead to substantial interest savings over time compared to simply making extra payments on a mortgage which typically calculates interest monthly. There may be nuances in your calculations, and getting them right can be tricky. It’s advisable to use specific tools designed for this purpose or seek a detailed walkthrough in one of our webinars, where we can provide more targeted advice based on actual figures. If you're interested to explore and understand these calculations in more depth, consider registering for our webinar: acceleratedbanking.com/webinar-registration?sl=youtube This could provide further clarity and ensure you're maximizing your interest savings using the correct strategies tailored to your financial situation.
It sounds like this will increase the amount of your monthly payment. Why not just pay that extra money directly to your mortgage and not get a heloc, it should save you more money.
I get where you're coming from, but simply paying extra towards your mortgage is like putting money into a one-way street-you can't easily access it again in emergencies. With our strategy, depositing your paycheck into the HELOC reduces your principal and interest, while also allowing you access to those funds if needed. For a more detailed explanation, this video might help: ru-vid.com/video/%D0%B2%D0%B8%D0%B4%D0%B5%D0%BE-HIvm17hor1s.html.
I'm trying to fully understand. So on the above example, just by using $20,000 from the heloc, it will reduce the mtg to 8.5 years? It just has to be done once? Is $20,000 the first 7 years of interest on the loan ? So for higher loans more Heloc is needed? I need to watch the previous video again. 🧐🤔
Not quite! The $20,000 from the HELOC is used to make a lump sum payment on the mortgage. This isn't a one-time thing but a process you can repeat to keep reducing your mortgage balance faster. So, for higher loans, yes, more from the HELOC might be needed. You should check out the video for a more detailed breakdown: ru-vid.com/video/%D0%B2%D0%B8%D0%B4%D0%B5%D0%BE-Xi75OPeNwfI.html. It'll help clarify the strategy!
Great video, However I have a question, wouldn't the mortgage need to be paid off whilst the HELOC is being handled? Or is the mortgage interest factored into the HELOC? If someone could clarify this for me that would be amazing
Great question! In the strategy we discuss, the mortgage is indeed being paid off while managing the financial products such as a HELOC. The idea is not that the mortgage interest is directly factored into the HELOC, but rather that you use the HELOC to make lump-sum payments towards your mortgage principal. This reduces the total mortgage balance, which in turn decreases the amount of interest you’ll pay over the life of your mortgage. The process involves carefully managing your income and expenses through the HELOC to both pay down the mortgage faster and handle the HELOC payments. The key lies in how effectively you can shift your cash flow to prioritize debt reduction. For a clearer understanding, you might find this video helpful where it explains how managing a higher interest product like a HELOC can still result in overall savings on your mortgage interest: ru-vid.com/video/%D0%B2%D0%B8%D0%B4%D0%B5%D0%BE-HIvm17hor1s.html.
@@TheKwakBrothers Ah I think I have a better understanding, so your mortgage expense is going to be paid through the HELOC but these lump-sums allow you to make more towards the prinicipal payment, than the average mortgage would allow you to. Thus allowing you to pay it off earlier and with lower intrest?
You've got it! By using the HELOC to make lump-sum payments on the principal, you're essentially reducing the mortgage balance faster than making standard monthly payments. This leads to paying off the mortgage earlier and saving on overall interest. For a more detailed explanation, check out our video here: ru-vid.com/video/%D0%B2%D0%B8%D0%B4%D0%B5%D0%BE-HIvm17hor1s.html.
I’m not sure about the specifics of acquiring a new loan for a new build. However, our strategies can be applied once your conventional loan is set up. For more insights on how to optimize your finances, you might find our webinar helpful: acceleratedbanking.com/webinar-registration-515174331635781964831sl=.
hey .great video . I have HELOC with 100k credit and I have mortgage of 290k left should I just drop all 100k in to mortgage 30 YEAR MORTAGE ITS BEEN 5 NOW HOME WORTH 1.3 I WANT TO PAY IT OFF IN 2-3 YEARS THANK YOU AGAIN
Glad you enjoyed the video! Instead of dropping the entire $100k into your mortgage at once, our strategy involves using your HELOC to make principal-only chunk payments while leveraging your paycheck to quickly pay down the HELOC. This method can save you time and interest. For a detailed breakdown, check out this video: ru-vid.com/video/%D0%B2%D0%B8%D0%B4%D0%B5%D0%BE-Xi75OPeNwfI.html.
@@TheKwakBrothers Hey again On my mortgage is asking for account number and routing number and the HELOC only have account number am I missing something? Thank you again for your work.
No, you won't have two separate payments. Depositing your paycheck into the HELOC counts as a payment itself each month. This approach simplifies your payments and helps reduce your overall debt quicker. For more details, check out our webinar: acceleratedbanking.com/webinar-registration-515174331635781964831sl=youtube
Making an extra payment each year can help, but it's not quite the same as using a financial product. With our strategy, you're more effectively managing your cash flow to save on interest and pay off your mortgage faster. For a detailed explanation, check out our free webinar: acceleratedbanking.com/free-virtual-class?sl=youtube
Nope, you actually won’t have two monthly payments. By "depositing" your paycheck into the HELOC, it counts as a payment itself each month. For more details, check out this video: ru-vid.com/video/%D0%B2%D0%B8%D0%B4%D0%B5%D0%BE-HIvm17hor1s.html.
Absolutely, it's great to hear that you're interested in understanding more about this concept. We have a beginner-friendly explainer video that should help you grasp the basics of our strategy at a comfortable pace. You can watch it here: ru-vid.com/video/%D0%B2%D0%B8%D0%B4%D0%B5%D0%BE-Xi75OPeNwfI.html. This video gives a general overview and might clarify how the strategy can work even with different interest rates. Feel free to take a look and let us know if you have more questions!
It sounds like there might be an issue with the download. For bi-weekly payments or other advanced features, it's best to reach out for an updated version or consult the support team. Meanwhile, you can use our online calculator here: acceleratedbanking.com/home.
The thing I don't understand is if you are paying lower interest rate on your mortgage that should be better than heloc at higher rate because while you may have reduced your daily balance on your mortgage therby saving on interest there, you still have to pay back on what you borrowed with the heloc. Problem is it will take time to pay back the heloc so how are you saving money? Won't the interest accumulate on the heloc? Like if you borrowed $20,000 then obviously you didn't already have the finances to cover that already on your own so lets say you only have a $200 cashflow every month then it seems like it would take forever to pay the heloc and now you higher interest payments on the heloc than you would have on the mortgage. Sure youre saving on money on mortgage interest but its canceled out by interest on heloc? What am I missing?
I get where you're coming from! The key is how the strategy uses cash flow. By depositing your paycheck into the HELOC, you reduce the principal balance and, consequently, the interest you owe daily. Even if the HELOC rate is higher, the reduction in principal means less interest over time. Let's say you deposit $3,000 monthly into the HELOC, lowering the balance throughout the month. When you use it for expenses, the balance goes up, but you're constantly reducing it with your income. This cycle can save significant interest long-term. For a clearer picture, check out our free webinar: acceleratedbanking.com/webinar-registration-515174331635781964831sl=youtube
We're sorry to hear you're having trouble accessing the free mortgage calculator. You can find it here: acceleratedbanking.com/home. If you continue to experience issues, it might help to clear your browser cache or try accessing the link from a different browser. Let us know if you need further assistance!
Velocity banking might not make sense if your financial situation changes in a way that significantly impacts your income or cash flow, like job loss or a major life event. It also might not work well if the banking products you’re using don’t align with the strategy. If you want to learn more about when this strategy could work best, check out our explainer video: ru-vid.com/video/%D0%B2%D0%B8%D0%B4%D0%B5%D0%BE-HIvm17hor1s.html.
Sounds like you're in a great spot already! If you're curious about how you can pay off your mortgage even faster, our strategy might still benefit you. You can learn more about it in our free webinar: acceleratedbanking.com/free-virtual-class?sl=youtube
Hey! I get that it might feel nerve-wracking, but remember, our strategy works even with higher HELOC rates. By managing your cash flow effectively, you can still save a lot on interest and time. Think of it like switching from a horse to a supercar-it can get you to your destination much quicker! To dive deeper into how this can work for your situation, check out our explainer video: ru-vid.com/video/%D0%B2%D0%B8%D0%B4%D0%B5%D0%BE-Xi75OPeNwfI.html. 😊
Hi If we have a HELOC that has a 50,000 limit with a 49,000 balance ( took it out for repairs etc) want to eventually use the HELOC to accelarate the mortgage pay off. we have a $5000 month income with a $1519.07 mortgage and other bills. I cant figure out exactly how to do this even though I know it will take longer since we need to pay down HELOC first. I think I am missing a step or two. Hoping someone can help! Thank you
you will never get a straight answer. this is not worth the time. just knock of principle every month or even better every 2 weeks. he was checking excel calculation using a calculator. that was so D*&^. don't waste your time on it. 7% is higher than 3%
You can use this method to quickly pay down your current HELOC balance. Since you already have a HELOC, all you have to do is park your paychecks in there & use your HELOC just like a checking account to pay your monthly expenses. I find it easier to charge everything on our credit cards & use the HELOC to pay them off every month. How fast you pay it off will depend how much cash flow you have👍🏼
I appreciate your interest, but our strategy is specifically designed for the American financial system. Therefore, it might not work the same way in Canada. I’m not sure about the specifics for Canadian homeowners. Sorry for any inconvenience!
I get it, keeping things simple by paying extra towards the principal can work. But our strategy can potentially help you pay off your mortgage even faster without having to make those extra monthly payments. If you're curious about a more efficient approach, check out our webinar: acceleratedbanking.com/webinar-registration-515174331635781964831sl=youtube.
I understand your concern. While it's true that $20,000 is still $20,000, the strategy lies in leveraging your cash flow to reduce the overall interest paid and pay off your debt faster. Instead of just focusing on the interest rate, our method takes advantage of more efficient repayment techniques. For more details, please check out our webinar: acceleratedbanking.com/webinar-registration-515174331635781964831sl=youtube.
IKR, wouldn't make sense at ALL for me when we paid $64,900 for our house in 21, overpaying the $125 a month principal knocks years off and its free, not threatening my house.
I get your point, but velocity banking isn't about just adding extra payments. It's about using cash flow management to optimize how you pay down your debt. By using a HELOC strategically, you might save more on interest and time even with the same income. Want to see how? Check out this video: ru-vid.com/video/%D0%B2%D0%B8%D0%B4%D0%B5%D0%BE-Xi75OPeNwfI.html.
It's totally worth it if you might need access to that cash again. Making extra payments on a mortgage is great, but they are gone once paid....you will not have the ability to access or leverage that cash for any other purpose unless you do a cash out refi.
This strategy works best at the beginning of the loan, correct? Like once you're say 12 years in, I'm guessing best to just add extra payments to principal at some specific year and beyond?
@@laurachonkoare you guessing? Or is that proven with the calculations? I think putting your cash to work is a good thing. And if I need it for an emergency, I have access.
I understand wanting to talk to someone directly. One of the best ways to get started is by attending our webinar, where you can interact and get more detailed information. You can register here: acceleratedbanking.com/webinar-registration-515174331635781964831sl=.
