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hey hey my friend! I took them down as they didn't have all of the context people needed. I have learned a lot since I first made those and am redoing them all. I am also giving people the software they need to help them understand it better and how to maximize everything.
Seems like chunking payments from LOC only works if you deposit your paychecks into LOC and pay expenses from LOC. Obviously income needs to be higher than expenses so you can pay that LOC off and then chunk again.
Chunking never "works" (i.e. is never cost efficient) with VB because VB proponents are always using a higher interest rate (higher than the original mortgage) LOC or HELOC to allegedly accelerate mortgage repayment...... they just end up paying more interest
Great observation, and there is so much that goes into this. The key is to understand the math and the math says any form of chunking dereases cash flow and is only a benefit if the cost of debt is lower. This does not take into account cash managment which is a great use of the LOC. Hop into our Skool community and get access to all of our classes and software at: LearnAndGrowRich.net
So I have seen plenty of evidence in both camps; VB and extra payments/debt snowball. The main question I have, WHERE do you think extra principle payments get fit in, in terms of the payment schedule? Is it extra principle gets slotted where your currently at, in the schedule or at the end of the loan? That might be the answer your seeking. Also I have seen plenty of videos that have VB stopping when the amount of interest is less or similar to a normal pay of the schedule and swap to snowball.
Who cares about interest over the SAME amount of time?!? How about the full access to the capital becomes accessible using VB, IBC, etc.... I am in school to become a tax accountant. I am also retired and sit learning all day every day! It is glorious and I wish I jumped into this life 30 years ago!~
My mortgage is fantastic. rate 2.65% but the TIP or Volume is A LOT more! I will be in a 1st lien soon. And I will love it! I do spreadsheets too! And the returns I have worked on are the 8 and 7 digits AUM types.
It is not the Amortized schedule - it is HOW the schedule is structured! If they capture a TON of interest every month for the first 10-12 years..... the BANK wins once again! The house wins!! It is more so BALANCE and TIME that matter to me. I would love love a dialogue. I am not wanting a red cent from you. I love learning. And I also love winning in life and helping others too!
