From 30 Year Mortgage to 3.2 Years Left (Saving $125k!)
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- เผยแพร่เมื่อ 5 มิ.ย. 2024
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Curious about how to drastically reduce your mortgage term and save a significant amount of money? Our latest video demystifies the process and provides a clear, step-by-step guide to turning a 30-year mortgage into just 3.2 years, resulting in savings of $125,000. Join us as we explore various strategies for accelerating your mortgage payoff, whether you're looking to make extra payments or manage your finances more effectively.
In this discussion, we delve into key considerations such as budgeting techniques, refinancing options, and leveraging additional income sources that can help you stay on top of your mortgage payments. We'll also share practical tips on managing your financial journey to ensure a smoother and more efficient debt repayment process. Whether you're new to mortgage management or looking to optimize your repayment plan, this video offers valuable insights to help you achieve financial freedom and peace of mind. Don't miss out on this essential guide to mastering your mortgage payoff strategy and securing your financial future! #MortgagePayoff #FinancialFreedom #DebtReduction #HomeOwnership #SmartFinances #WealthBuilding #FinancialPlanning
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*DISCLAIMER* The suggestions, advice, and/or opinions that are given by Sam Kwak and Daniel Kwak (The Kwak Brothers) are simply opinions. There are no guarantees of set outcomes. Listeners, guests, and attendees are advised to always consult with attorneys, accountants, and other licensed professionals when doing a real estate investment transaction. Listeners, guests, and attendees are to hold The Kwak Brothers and its brand harmless from any liabilities and claims. Not all deals will guarantee any profit or benefits. Listeners, guests, and attendees are to view and listen to all materials and contents furnished by the Kwak Brothers as a perspective based on experience. - แนวปฏิบัติและการใช้ชีวิต
The problem is that HELOCs come with HIGHER interest rates than the first mortgage.
@@DrFinancialLiteracy yes, but you said you will get your daily expenses from there too, right?
I understand your concern about the higher interest rates on HELOCs. However, our strategy focuses on cash flow management rather than just the interest rate, which can result in significant savings over time. For a deeper understanding, check out this video: th-cam.com/video/HIvm17hor1s/w-d-xo.html.
Interest rate does not matter much when using a HELOC because you are keeping your balance much lower. Rate is only one factor . Time and Balance are the others, and are more Important.
I can't get approved for a HELOC because of my low income
I'm sorry to hear that. We often help clients explore alternative financial solutions if they face challenges getting approved for a HELOC. Our consultants can work with you to find the best approach for your situation. For more personalized advice, consider joining our webinar: acceleratedbanking.com/webinar-registration-515174331635781964831sl=.
You take out HELOC to pay down the mortgage to reduce the principal then the income will pay the HELOC. The question is what about the mortgage payment where is it coming from. Thanks
Great question! When you deposit your paycheck into the HELOC, it reduces the balance, which in turn reduces the interest you pay. Your regular income helps manage both the HELOC and mortgage payments. For a detailed explanation, check out this video: th-cam.com/video/HIvm17hor1s/w-d-xo.html.
Heloc are adjusting which is scary
I understand your concern about adjustable rates. While the HELOC rates can fluctuate, our strategy leverages cash flow management to minimize interest impact, potentially saving you more in the long run. For a deeper dive into how this works, you might find this video helpful: th-cam.com/video/HIvm17hor1s/w-d-xo.html.
Dont you have to pay down the principle, to attain Equity in your house, before you can attain a HELOC?
Not necessarily. You can get a HELOC even if your house isn't fully paid off yet. Some banks may require an appraisal, but it depends on whether it's a 1st or 2nd lien HELOC. For more details, check out our explainer video: th-cam.com/video/HIvm17hor1s/w-d-xo.html.
Can this with a credit card instead of a heloc?
That's a great question! While the strategy primarily uses a HELOC due to its flexibility and nature, some elements can work with a credit card, mainly if it offers a low or 0% APR introductory period. However, credit cards typically come with higher interest rates and fees which may not make them as suitable for long-term repayment strategies.
For specific scenarios and insights, you might want to watch this video: th-cam.com/video/UWwqDaIYeR8/w-d-xo.html.
Thanks for the information ,will the HELOC method will be is worthy if my mortgage interest is 2.6%?
Absolutely! Our strategy focuses more on managing cash flow than just the interest rates. It can help you save time and money even if your mortgage rate is 2.6%. For more insights, check out this video: th-cam.com/video/HIvm17hor1s/w-d-xo.html.
I have a couple questions if you are taking a 20k heloc from the equity of your home and putting it straight back into the mortgage, wouldn't that defeat the purpose of paying the principal down? Also, if you are paying down your heloc there would be a constant interest. What are the typical fees associated with creating a heloc?
Great questions!
1. Paying down HELOC principal: When you use the $20k HELOC to pay down your mortgage, you're reducing the mortgage principal, which leads to less interest overall. Then, depositing your income into the HELOC helps pay it down faster due to its flexible payment structure.
2. Interest on HELOC: Yes, there will be interest on the HELOC, but the strategy focuses on efficient cash flow to minimize total interest paid. It’s a balancing act that often ends in major savings.
3. HELOC fees: Fees can vary by lender, but common ones include application fees, annual fees, and appraisal costs.
For a deeper dive, you can check out our explainer video here: th-cam.com/video/Xi75OPeNwfI/w-d-xo.html. Hope this helps!
You can pay down the HELOC faster because your daily interest is lower. A conventional mortgage only changes amount applying to interest monthly.
Should you only get a HELOC for your amount of you monthly income?
It's not necessary to match your HELOC amount to your monthly income. The HELOC is used as a tool to make substantial principal payments on your mortgage, optimizing the cash flow from your income. For a clearer understanding, watch this explainer video: th-cam.com/video/Xi75OPeNwfI/w-d-xo.html.
Holy crap ❤❤❤❤
If i own a Llc, then purchase a house - can I still get a HELOC for the house?
Yes, you can get a HELOC for a house owned by an LLC, but the requirements may differ based on the lender. It’s often advisable to speak directly with the lender to understand their specific criteria. For more insights on optimizing your mortgage payoff, watch this video: th-cam.com/video/Xi75OPeNwfI/w-d-xo.html.
Can one get a first lien heloc even if the house is not paid off yet?
Yes I have one…
@@nataliamartigon7744 for which bank offers this? Thanks!
Yes, it's possible to get a first lien HELOC even if your house isn't fully paid off yet. Some banks might require an appraisal, and the draw period can last between 10-30 years, depending on the bank's guidelines. For more details, check out our explainer video: th-cam.com/video/HIvm17hor1s/w-d-xo.html.
Some banks will do if have 10% equity but lot better if 20%.. also loan to value helps along with debt to income ratio.
@@russellmavis3220 thanks
Will this still work with the current interest rates if I have 27 years left at 2.75% on my mortgage?
Yes, it can still work! Our strategy focuses on cash flow management rather than just interest rates. Even with a low rate on your mortgage, leveraging the flexibility of a HELOC can help you save time and money. For more details, check out this video: th-cam.com/video/HIvm17hor1s/w-d-xo.html.
@@TheKwakBrothers
I see. That client had an extra $4000 paid into the mortgage every month. They paid 10k into the heloc, then took out only 6k every month. Would it not havw been better to just use a high yield savings account at 5% to put the monthly incomwle into and then pay $4k to the mortgage? I roughly calculated with the savings account interest and $4k saved they could have paid $53k extra into their mortgage
I see where you're coming from. However, the advantage of using the HELOC strategy is liquidity. By using the HELOC, the client's entire income reduces the principal daily, lowering interest costs more effectively than a high-yield savings account. For more details, consider checking out this video: th-cam.com/video/UWwqDaIYeR8/w-d-xo.html.
Thanks for the information ,will the HELOC method will be is worthy if my mortgage interest is 2.6%?
If you are severely disciplined. But may not be worth it depending on a few things...