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Just put money in your principal

The extra payment would go to the principle or interest or would I just send it with the mortgage payment .

in my point of view, housing market decline is imminent due to the high number of people who bought homes above the asking price despite the low interest rates. These buyers find themselves in precarious situations as housing prices decline, leaving them without any equity. If they become unable to afford their homes, foreclosure becomes a likely outcome. Even attempting to sell would not yield any profits. This scenario is expected to impact a significant number of people, particularly in light of the anticipated surge in layoffs and the rapid increase in the cost of living.

Plz note over a period of 30 years you are paying back mortgage in Depreciated Currency...LOL

I think your missing something! Why don’t your personally reach out to Christy! Maybe you can learn something! I don’t see anyone or any comments saying it did not work for them, just praises! Her philosophy is if you help enough people get what they want in life you’ll have everything you want in life”. She is not asking for any kind of money or anything like thator anything in return. She is not a financial advisor. It’s just strictly numbers numbers can’t lie.

I feel better saving extra money in a high-yield savings account so that I can gain interest on it and at the end of the year make one extra mortgage payment. That will allow me to get the interest from the savings account and also buy waiting till the end of the year to make the extra payment. If something were to come up and I need that money for an emergency I still have it available to me. Because once I put it towards the mortgage that money is gone I cannot take it out or use it for anything else..

15% return in S&P 500 ie QQQ et vs a 2% mortgage case is keep investing.

Mortgage rates are currently at an all time high since 2000(23 years) and based on statistics on inflation, we might see that number skyrocket further, a 30-year fixed rate was only 5% this time last year, so do I just keep waiting for a housing crash before buying or redirect my focus to the equity market.

how about a video of the latest adds "be your own bank"?

I have no formal financial yraining or qualifications. When I got my first computer in 1990 I discovered spreadsheets. The first one I did, once I got the basics, was almost identical to your repayment calculator. So, I put my outstanding mortgage on there and it hit me likea ton of bricks. Every overpayment I make comes straight off the bottom line. I plugged in various numbers to get to where I wanted to be. If interest rates went up I covered it with higher payments. However when they came down I also put the payment up. Double bubble! Ive cleared three mortgages since then, all in less than 10 years. I am now downsizing to a slightly smaller house after retirement and putting 300k in the bank.

How to pay off your mortgage early - pay the mortgage company back faster. Got it 👍 The title should be "How to reduce the total cost your mortgage."

Vb worked for me. I paid my house off in six years.

Absolutely priceless information, thank you for sharing this knowledge. As someone who has deliberately never purchased a new car (I don't like putting my money into quickly depreciating assets), I've always wondered what the difference was between leasing and financing when ll was said and done, and if I was missing out on something by not using one of those methods to buy a fancy new vehicle. Correct me if I'm wrong, but it seems that leasing would only make sense if the vehicle is used in a commercial enterprise and the lease costs can be 100% written off as an operating expense. Would you agree? Thank you!

Just discovered your channel, excellent advice, thank you for sharing that! At 68, and having worked for myself most of my life, I think I made 7 of those 10 mistakes, resulting in the situation that I'm in right now - unable to retire fully. But I'm working on adding additional income streams to my meager SS income (I've been doing it for years, but now with more determination),, and am aiming to create the income I need to retire fully within the next 18 months. I will be working on those other 7 points you mentioned. And I agree fully with the vehicle purchase, I've never had a car payment in my life and plan to die without ever having one. And yet all around me I see friends buying $40,000 cars, financed to the hilt, paying $50,000 in total by the time they've paid them off five years later, and finding out that their $50,000 car is now only worth $8,000, IF they've taken good care of it. The $8,400 per year loss in depreciation, never mind the much higher cost of insurance that one never gets back, is something they seem totally blind to. And then they just go to the dealer and start it all over again. It's madness. I've subscribed and will be watching more of your videos, and thank you for sharing your knowledge.

Is there a scenario where velocity banking works? The reason i ask is i see people use one example mostly the worse example to justify why strategies like velocity banking does not work. In this example, you are giving a car interest rate of 2.5% and a Ploc interest rate of 10.99%. I want to know if the strategy will work in this instance with a ploc interest rate of 3%, 4% or even 5%. Thanks

My mortgage interest rate is only 2.75% but im not set to pay it off until 67. I plan to pay extra to pay it off by 60 and the rest of my extra funds left in my budget will go to my retirement accounts. Hope this is the smart thing to do. I just want to ensure that it's paid off prior to retirement. My folks are going to start giving me $9k a year from their living trust, which i will use to fund my roth ira, and the rest goes to paying on the home. I also put 6% towards my 401k roth with a 6% match from my employer. Finally, I max out my HSA. Im hoping to retire at 62.

Great info!!

Now you tell me 🤦‍♂️

This seems bank sponsored

I like this concept better than vb. I am actually doing vb. I am going to start doing scenario #3. Thank you.

I would love to see A TH-cam debate with a couple of the velocity Bakers!

2.5% car loan??? Try 7% +

My house loan has $47K in interest over 30 years. I got my loan 7 years ago. I'm not paying a dime more than I have to each month, because my investments make more than that. But I'm never moving, because I don't want a modern mortgage, lol. 20 years until retirement. Cheers.

You don’t understand Velocity Banking. You need to follow Christy at VANNtastic Financing. You need to watch her videos and study it, then you’ll get it.

May be if you brake it up in slow motion I will get it!😂 may be you should give some more details for those of us that didn't get use to deal with finances

Lemme guess he works for the bank 😂😂😂

My mortgage is $ 900 a month got it down to $50000 in 12 yrs. 😂 iam happy 3.5 % interest FJB. MISS THE TRUMP YEARS. Was $ 150000 loan!make those extra payment payments baby don't let the bank screw you up the wazzoo.

Would be interesting to see what 100 extra a month paid bi weekly would save, I.e., combine 1 and 4. or 1,3 and 4 combined also

2:40 This is more accurately a representation of why the "life of the loan" is more important than the interest rate, not the inverse. The interest rate is almost entirely irrelevant if the loan is for a small duration of time -- 4% Interest in one year of a 250,000 loan is $5,449.71 That's a 1-year loan/mortgage, which isn't really feasible. But for an example to why interest is entirely irrelevant without context. The real killer is the term of the loan, not the interest rate. Which brings back to the actual defining reason why this is important. A 7% interest rate on a 15-year mortgage (of $250,000) has a principle balance of $404,472; You pay $154,472 on interest. A 4% interest rate on a 30-year mortgage (of $250,000) has a principle balance of $429,673; You pay $179,673 on interest. You pay more interest over the life of your loan with a 30-year mortgage at a lower interest rate. Now realistic terms, the 30-year mortgage (today) has a higher interest rate than the 15-year mortgage, a comparable 6 to 7% respectively. Effectively, today if I went to buy a house and had the two options, here is what they would be on a $250,000 house: (No down payment, let's say) 15 year: 6.7% - Principle: $396,962 - Interest: $146,962 - Monthly Payment: $2,205 30 year: 7.4 - Principle: $623,141 - Interest: $373,141 - Monthly Payment: $1,730 Respectively, you're "saving" $475/month to spend an additional $226,179. At that stage of life, if you're "struggling" to spend an additional $500 on a mortgage, you should ask yourself: "Maybe I can't afford this" rather than "Let me spend $300,000 more than the asking price on a house, which is 5% higher than the vested interest collected over 30 years on the house, assuming that the houses value doesn't decrease over 30 years and sticks equal to inflation cost." Here is the problem: Interest is only important in relation to the term of the loan. In order to collectively get to the same value of interest paid, on the 30-year mortgage, the 15-year mortgage would require you to have an interest rate of 15%. Yes, you heard that right, readers. You get ripped off so hard just by choosing a 30-year mortgage over a 15-year mortgage. Is saving $400/month worth paying 15% actual interest on the property? Do you see yourself, probably at age 40, keeping another 30-year mortgage?

I make weekly payments and it’s even better because of timing when interest is charged.

You debunked yourself in your own video! lol. You would put your paycheck in first before expenses come out on a CC. It works the same way as a checking account. (Except for interest) also it would pay off in 10 months, because when you pay the statement balance of a CC you pay $0 in interest. You are wrong sir.

There once was a mogul in doubt, Who thought books would pave his way out. He read forty or more, 'Til his eyes were quite sore, But his business still went down the spout.

I really miss Louis Rukeyser and similar type shows. The video was much like those award-winning shows. I know my friends are using the velocity banking process; but they rarely have any money to save each month. I know I can’t convince them that they are not making headway on wealth accumulation, but I enjoyed the video.

I don’t think this is very well through and he mentioned a HELOC of $10,000? Who would even waste their time and effort getting a HELOC for $10,000? Most examples I’ve seen would be people paying off multiple high interest credit cards because they could get a HELOC for a very large amount of money predicated on the equity they have in their home . And then this process would be calculated. In generally, the high amount of minimum payment would turn into excess cash in these examples. He was just seeing examples of very tiny amounts of transaction money

So what if someone paid bi weekly and and extra 200 ea h payment... is there a way to figure that out..

so you say it doesn't work it makes sense what they talk about I bet you work for some Bank or a bank is paying you

Thank you.

Why am I not surprised that lots of SPAM quickly fills up the comments, making them mostly worthless? The actual video was decent if you ignore the many spammy comments.

I think you left out a very obvious choice, for those wanting to pay far less interest. GET A SHORTER MORTGAGE. So for example, get a 15 year mortgage (implying you need to buy the house you can afford with a larger regular payment). Even if you NEVER make extra payments, you save HALF the time on making payments, and pay a TON less total interest. The friends I advised to do this in their 20's and 30's and who followed the advice ended up very financially successful (re early retirement and being plenty comfortable in retirement) by having FIFTEEN FULL extra years MORTGAGE FREE to seriously stack money up for retirement, during their highest earning years. Also, as mentioned above, the 15 year mortgage is a way to constrain the total house cost to something "sane" compared to your total income (presuming you can truly manage to make the payments the first few years). From what I've read looking around a bit, you can still typically get a somewhat reduced mortgage interest rate and sometimes lower fees with a 15 year mortgage, vs. a 30 year mortgage, and every bit of saving on costs helps. Aside from the higher payment in the early years (while you wait for raises, etc. to help make the payments easier), am I missing disadvantages here? I'm surprised MORE people don't opt for this.

Ive tried to pay biweekly. My mortgage company waited for full payment then applied that payment. They refused to credit account biweekly. Also, instead of refinancing and spending more money to do that , can’t it just be recapped for a small fee?

In short, pay off your mortgage early by making additional payments. This seems so painfully simple, but I'm skeptical if the average American knows this.

On our own we figured out that we should make at least a $100 month extra payment on our 15 year fixed at 7.3% Sometimes more sometimes nothing but on average $100/month paid off our mortgage in 12 years. Some people that I know told me that we should invest instead of paying off the mortgage. Our mortgage was paid off 7 years ago plus all of our other debt is paid and we are now investing 5 times the dollar amount of our mortgage while my friends are still paying on their mortgages and investing very little, very little. So, my message isn't do what makes the most mathematical sense rather it is do what gives you the greatest amount of comfort and ignore those who are not paying attention to their money. "But Tom my interest is 3% and I can get 8% on investments". Honestly, I don't care.

Mort interest rate is 3.8% with a balance of $70K. I have investments on Treasury Bills and CDs earning 5% but total balance not enough to cover the mortgage amount. If I pull out these investments towards mortgage, it will reduce the balance but I will still be paying the same monthly with nothing to back up emergencies.

Pragmatic, honest, helpful. Thank you for taking the time.

I love having mortgage interest to write off against our income. We drive 6klb vehicles and bonus depreciate our rental properties. This is a great video but having tax write offs are critical if your income places you in the highest tax bracket.

You're wrong about many points. One important one is that interest is amortized on the mortgage and simple on the heloc which is a major discrepancy on your part

one big piece you forgot that is key to velocity banking is to use a credit card for all your monthly bills so you don't accrue interest in the HELOC until the end of the month when you pay your credit card off...then your income comes in to bring down the HELOC again. Credit card doesn't accrue interest unless you carry a balance after each cycle. I think you are over generalizing saying velocity banking is a scam when you don't really understand the details of how it works.

So I was correct in thinking the best form of Velocity Banking is to just make more money which then allows you to payoff your debts faster 😅

Why is it so incredibly hard in this country to simply find a decent answer for something that should be mandatory knowledge in our society? All of the schooling I've had and no one ever taught me anything other than this whole industry is against the common man/woman. Don't want financial help. I want clear answers as to what I can do to better my life a well as others in my life.

Who is the "she" that you are referencing?