26 year mortgage Turned to 4.5 years?
ฝัง
- เผยแพร่เมื่อ 21 พ.ค. 2024
- Download the Free Calculator: chopmymortgage.com
Unlock the secret to rapid mortgage payoff with our latest video! Discover how a seemingly impossible financial feat was achieved through smart strategies and disciplined planning. We'll walk you through the step-by-step process that transformed a 26-year mortgage into just 4.5 years, offering practical tips and insights that you can apply to your own mortgage situation. Please remember that this video is meant to be for illustration purposes only! Yes - the client and the testimonial is real but it does not represent a typical scenario. However, the strategy that we teach can help homeowners gain better control of their finances.
In this engaging and informative discussion, we delve into the key techniques used, from budgeting hacks and extra payments to leveraging the power of refinancing and other financial tools. Whether you're a homeowner looking to shorten your mortgage term or simply curious about effective debt reduction methods, this video provides valuable knowledge to help you achieve financial freedom faster. Don't miss out on this inspiring story and learn how you too can take control of your mortgage and secure a debt-free future! #MortgagePayoff #DebtFreeJourney #FinancialFreedom #HomeOwnership #MortgageHacks #SmartFinances #DebtReduction
.
.
🏠How to Pay Off Your Mortgage in as Early as 5-7 Years
acceleratedbanking.com/free-v...
.
📈 Create & Scale Your Passive Income through Real Estate:
www.passiveincomemastery.com/...
.
⌨️ FREE 7-Day Trial To PropStream Real Estate Investing Software:
reisoftware.thekwakbrothers.com
.
📗 Get Our Book & Free Course: "Break Free From Your Mortgage"
acceleratedbanking.com/book?s...
.
📘 Get Our FREE Book "0 To 75 Units in 1 Year"
0to75units.com?sl=youtubechannel
.
========================
*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
Everyone, please understand, if your mortgage balance is $400,000, and you pay it off in 4 years. You need to have made about $350,000 in excess income over that time. That combined with your regular payments gets you to $400,000 over that 4 year period. All this is doing is optimizing every excess dollar you make and puts it to the mortgage. You WILL save a lot of money by doing this, but you need to have A LOT of excess income to pay it down quickly. The more excess money you make, the faster it gets paid down. You are not creating money you don’t have, by doing this, BUT you are saving a ton in future interest payments.
I think I’m beginning to understand. This system is about having control over the amount of interest we pay. If we can control the amount interest we pay, we can direct more money to the principal with each payment.
So the HELOC helps save interest and lowers your amortization. You’re putting in your income and taking it out again for expenses, which essentially brings your amount owing on the HELOC back to $20,000. How do you pay the $20,000 off faster? You’re making your monthly mortgage payments but now have an additional HELOC loan payment alongside it. You must have extra monthly cash flow to be able to pay off the HELOC in exchange for less interest/amortization on your mortgage.
Did you use equity on the same home or HELOC from different property?
Yes, you’ve got the gist! The strategy involves using the HELOC to make lump-sum payments towards your mortgage principal, then using your income to pay down the HELOC, and repeating the process. Your cash flow is key here. By directing your income into the HELOC and only pulling out what you need for expenses, you effectively reduce the principal faster. This helps in saving on interest and shortening the amortization. For a more detailed explanation, check out this video: th-cam.com/video/HIvm17hor1s/w-d-xo.html.
Use your credit card for your expenses throughout the month. Pay your credit card off at the end of the month using your Heloc account. Sounds good, I’m going to try it.
What banks do you recommend for a fixed HELOC?
Op should watch the video. 🙄
Bro, nice haircut, where’s the barber 💈 spot @?
Quick question. Is there a limit to the amount we should put toward our mortgage principal from the HELOC? 10-20k seems manageable, but 100-150k seems overwhelming. Should we not put more than 20k or does it depend on our income level?
Your guidance would be greatly appreciated!
Great question! Generally, starting with manageable chunks around $10-20k is a good idea. The exact amount depends on your income and expenses. You don’t have to go up to $100-150k right away. It's important to maintain financial flexibility.
For more personalized advice, check out this video: th-cam.com/video/Xi75OPeNwfI/w-d-xo.html.
So is sort of like that velocity system with a HELOC.
Exactly! Our strategy does involve using a HELOC. It leverages your cash flow to pay down your mortgage more efficiently. If you’re curious about how it works in detail, check out our explainer video here: th-cam.com/video/Xi75OPeNwfI/w-d-xo.html
Why not just use a first position heloc or an all in one loan??
I understand why you might consider a first-position HELOC or an all-in-one loan. However, not all financial products work the same way. Our strategy is specifically tailored to leverage the flexibility of certain banking products to optimize debt repayment. For more details, check out our video explaining the benefits and how our method works: th-cam.com/video/HIvm17hor1s/w-d-xo.html.
Interesting. I opened up a HELOC years ago that I have not touched. So to clarify, I could pay a few K every month, pay that heloc balance off at day 28, and I won’t pay interest on that HELOC? I think I have about 6 yrs left on HELOC?
It's great that you're considering using your existing HELOC to work towards paying off your mortgage faster! Using the strategy you've described-paying down the HELOC balance before the interest accrues-can indeed be an effective way to manage the financial product without incurring much interest, depending on the specific terms of your HELOC.
Just to clarify, most HELOCs accrue interest daily on the outstanding balance, so if you pay off your balance before your statement period closes, you minimize the amount of interest charged. However, it's important to understand the specific terms of your HELOC regarding how interest is calculated and any potential fees associated with payments or balance refreshes.
If you're considering using this strategy and have about 6 years left on your HELOC, it might be a good time to review your approach to ensure it aligns with your financial goals. If you’re looking for more detailed guidance or examples of how this can work, attending one of our webinars could be beneficial. You can register here to learn more: acceleratedbanking.com/webinar-registration-515174331635781964831sl
Wouldn't moving it to a first lien position HELOC be better that's what I did works great!
First lien position financial products can indeed be a great option and work well with the strategy. The flexibility they offer can make a significant difference. If you'd like to see how this aligns with our overall approach, feel free to watch our explainer video here: th-cam.com/video/Xi75OPeNwfI/w-d-xo.html.
Way too complex. If it was this easy everyone would be doing this. Something smells. Is it snake oil?
I understand the skepticism. It might seem complex at first, but many homeowners have found success with our strategy once they understood how it works. It's all about smarter cash flow management, not magic. If you're curious, our explainer video might help clarify things: th-cam.com/video/HIvm17hor1s/w-d-xo.html.
Yeah it is, more “smoke and mirrors” actually. You could easily just make extra payments on a conventional mortgage with a lower interest rate and you would actually pay off your home faster because less of your money would be going to interest and instead would be attacking the principal. It’s a very compelling strategy the way it’s explained but it’s definitely not more efficient, the math is actually super simple and it doesn’t add up.
@@brandonbrooks6780you could, but chunking allows you to throw a bigger amount at the principal sooner than later. You have to make the money to make the extra payment. Whereas with the HELOC you’re using “other” money you don’t technically have right now. It’s also a safe haven in case your monthly cashflow changes. When you make that extra payment on a conventional mortgage. It’s gone forever. When I make it with the HELOC, I get access to it again because a mortgage is a one way street and HELOC is a two street.
It’s actually not if you understand money.
Do you also think using a credit card to pay all monthly bills (where you change the due date to the end of month) is too complex as well?
You’re effectively allowing your own money to sit all month long (in a HSA or even a broker account - earning interest - while never paying credit card interest) while paying all bills at the same time as opposed to paying each individual bill during a given money from a debit/checking account?
That’s part of this longer “complex” scenario. But if you can under stand doing that, then it’s the same thing as using a HELOC vs a mortgage.
How a heloc will help paying faster when the interest on helocs are higher than the rate in the house I want you to pay?
The strategy of using a financial product with a higher interest rate than your mortgage might seem counterintuitive at first glance. However, it fundamentally revolves around the way these products are structured and how you can manipulate your cash flow for debt reduction.
The notion here is not merely about the interest rates, but more so about flexibility and the capability to reduce principal faster than with traditional long-term amortized loans. By strategically channeling your cash flow through the line of credit, you can frequently reduce the principal amount owing, thereby reducing the compound interest accumulating over time.
For a deeper understanding of how paying off a low fixed-rate mortgage with a potentially higher rate line of credit can still be beneficial, you might find this video explanation helpful: th-cam.com/video/HIvm17hor1s/w-d-xo.html. Here, the strategy is detailed with mathematical examples showing the potential benefits despite the higher interest rate.
I think you not only consider interest rate, but also time and balance. If you are throwing your paycheck in the HELOC every 2 weeks, it really doesn’t have time to accrue much interest, because you are constantly knocking the balance down. If you are 2 income household, then you have 4 checks going into the HELOC to knock down the balance even faster.
I don't see the advantage here over simply making an extra payment towards principal every month. When compared to that, this seems like more of a disadvantage... Or am I missing something?
The advantage isn't just about making an extra payment. By using our strategy, you leverage a financial product to pay down your mortgage principal more effectively. This allows you to potentially save thousands in interest and reduce your mortgage term significantly-much more than just making extra payments would do.
For a deeper dive into how this works, check out this video: th-cam.com/video/Xi75OPeNwfI/w-d-xo.html.
@TheKwakBrothers in the video you talk about saving interest on the HELOC, but if I don't use a HELOC, I don't have to worry about saving interest on it at all. Also, with a second mortgage, you're subjected to two different forms of interest. I've watched three of your videos on this topic & I don't see how this method is advantageous over simply making extra principal payments.
Will this work if I’m paid bi weekly and not monthly?
Yes, it will work if you’re paid bi-weekly. Our strategy is flexible and can be adjusted to fit different pay schedules. Your bi-weekly income helps in making more frequent payments, which can further expedite the process of reducing your mortgage balance.
For more details, check out this video: th-cam.com/video/Xi75OPeNwfI/w-d-xo.html.
Where can i get a HELOC with bad Credit?
I’m not sure where exactly you can get a HELOC with bad credit. Options may exist, but they vary by lender and your specific financial situation. For more detailed advice tailored to your circumstances, you might consider joining our webinar: acceleratedbanking.com/webinar-registration?sl=youtube
You can’t it’s not easy to get a helco
You need a score over 700 and a low DTI
Isn't there a penalty if you pay more towards your mortgage than what was initially arranged
Most don’t. You have to make sure during the approval process that it’s clear that’s what you want. Then before signing make them show you the clause.
If one signed on for that stupid prepayment penalty thing...than yes.
I don’t think most have it. You do need to say need to specify the extra payment is to be applied to Balance Only. I did this from checking account but I need to check the fine print on my HELOC and mortgage.
Great question! Prepayment penalties depend on the terms of your specific mortgage agreement. Some mortgages do have penalties for paying off the loan early or making larger-than-scheduled payments. It's always best to check your mortgage details or consult with your lender to understand any potential penalties. If you'd like to learn more about managing your payments effectively, our explainer video might help: th-cam.com/video/Xi75OPeNwfI/w-d-xo.html
Interesting. Have a 125k mortgage left on 2.5% with 9 years left.
That's great that you have a low interest rate and a relatively short timeframe left! If you’re interested in exploring how you can potentially pay off your mortgage even faster and save on interest, you might find our strategy useful. It can help optimize your payments. For a detailed understanding, check out this explainer video: th-cam.com/video/Xi75OPeNwfI/w-d-xo.html.
Where is the calculator
You have to signup to his email distro and they never send it to you. I used a fake email and never got anything lol. This is typical with these types.
Well.. you signed up with a fake email LOL We don't send things to fake people. duh!
In all seriousness, please visit: chopmymortgage.com
Will a HELOc force you to have Home Insurance ???
@@DrFinancialLiteracy
Thanks for the info ... It looks interesting ; my home has plenty of equity and only $56k left on principal , but home insurance is slowing me from paying off sooner .
Why?
@@Superior_Adventures24
Local economy is designed to absorb the price of inflationary insurance products . Is a trickled down effect .
@@Superior_Adventures24
But is expected ; is what you get when the economy fails in central planning . I was born financially poor , so I dont really feel it . Everything I have done is for love and joy , not for material stuff .
I am not sure. Typically, lenders require home insurance to protect their investment, but specific requirements can vary. For more detailed advice tailored to your situation, consider joining our webinar: acceleratedbanking.com/webinar-registration?sl=youtube.
Doing this method you can payoff your home much faster. But you end up paying more in interest cause of the HELOC rate. He does not include that in his examples and treats the HELOC as a 0% interest rate which definitely is not the case. So if you don’t mind paying more in interest and just want to payoff you home or any other debt faster this does work. I did this with a 5 year car loan and paid it off in two years but paid about $200 more in interest. That’s not a lot more but for a house expect to pay a couple thousand more.
yes u r rite. concept he says on closing mortgage outstanding with HELOC LOAN but still liable for 10 percent HELOC loan.
It’s great to hear about your experience with your car loan, and I appreciate your perspective on the interest aspect. It's indeed vital to consider the overall interest paid when evaluating financial strategies.
The Accelerated Banking strategy, often discussed in our detailed resources, does consider the interest rates of financial products such as lines of credit. While these rates may be higher than a conventional mortgage, the key advantage lies in the flexibility these products offer - allowing for a more dynamic approach to principal reduction, which can counteract the higher interest rate effects over time.
For a deeper understanding of how this works, even with higher rates, I recommend watching the specific video that addresses your concern about paying off a low fixed-rate mortgage with a higher rate line of credit: th-cam.com/video/HIvm17hor1s/w-d-xo.html. This video explains the mathematical benefits and showcases examples that might clarify the potential savings in both interest and time, despite the apparent higher rates.
You obviously don't understand velocity banking. Do some more research. The earlier you start the better result.
I think I’m beginning to understand. This system is about having control over the amount of interest we pay. If we can control the amount interest we pay, we can direct more money to the principal with each payment.