Gone are the days of old! Velocity Banking is in!
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Using this method I am about to pay my mortgage off this week. Instead of 2033. It works Y'all!
Numbers don't lie...no matter what ya emotions say...I watch a ton of old videos...got the HELOC... paid off my car...paid off several credit cards...cash flow now is amazing...sleep better... thanks for changing my financial situation... only in month 5...can't wait to see what next year is like!
I have been writing my weekly budget for the month for over a year now. Although I know where all of my money is going to...I have not been able to figure out HOW to get out of debt. Until I started watching your content about a week ago. I really wanted to understand your message so before I started crunching numbers I binged watched alot of your previous videos. The more I heard, the more it was making sense. So Today I spent all day mapping out my own Velocity Banking Plan. I can't get a line of credit as of now because I am maxed out. But I have a plan to get one in 9 months. According to my budget I would've paid off all my credit/store cards, personal loans in 9 months. My mortgage will be paid off in 7.5 years! ( I am 1 year in of paying a mortgage) Saving nearly $200,000 dollars in interest! I am truly grateful to you and empowered by your wisdom. By way of saying thanks I will like, comment and share your content to my social media and help spread your message. Thank you for lighting my path towards financial freedom. ❤
You are such a light in this world of darkness and strife. Thank you for sharing all you do. ❤️🥰🙋♀️
This is an awesome breakdown. I have First Liens on my primary and 2 rental properties. I purchased the rentals with the First Liens through CMG Financial. I had to put 20% down, because I had to have a minimum of 20% equity to qualify for the rentals. (I already had the required equity in my primary mortgage. My tenants' rent payments cover the other 2 First Liens. I did this 3 years ago. It allowed me to retire last year at 58. It's AMAZING. I started watching Denzel Rodriguez and the Kwak Brothers at first. But Christy breaks it down more simply. It's been a Blessing in our lives. Heartfelt thanks Christy !! 🙏🏼
How was dealing with CMG?
I do the same. 👍👍👍
God bless you Christie. Thank you. Just, thank you.
Thanks for teaching! So, glad I’m open minded. I believe I was led to you. The timing was too perfect to be a coincidence.
I came for banking but i stay for your voice and accent haha i could listen to you talk all day
I've read comments like that as well and I think to myself they haven't done the math. Too bad. Their loss. But it's sad if someone who really needs this help believes the negative, wrong comments and doesn't get out of debt and feel the relief and get the freedom. I appreciate so much what you've taught about velocity banking
This is shocking!!! You are an angel!!! Thank you for waking us up!!! I understood it perfectly and I don't even do math!
Just got a HELOC for 25k application started! Love this way of banking. Bout to “get after” some debt consolidation!!
I was confused when I first started doing it, but I paid a 13k loan in record time. Thanks for the videos.
i am not in debt and I love your reasoning and logic. but man. you know someone is going to try and shut you down! I hope not. For those that can't follow just watch these a few times over. you will get it.
Im so Happy my son sent me your video!!.You are a blessing!!
If getting people to ‘feel’ empowered is wrong, then I don’t want to be right. I’ve watched a shed load (British term for a ton 😝) of your videos and it all makes perfect sense to me. Because while you’re paying down debt, you still have to live and this is one of the best selling points for velocity for me. You still need the mentality to stay disciplined but what’s not to like? Looking forward, feeling empowered and getting your money to serve you better. Bless you Christy, from across the pond, I think you’re wonderful 🙌❤️🇬🇧
Thank you so much @duchessoffunk4490
I love the feeling and empowerment I have started experiencing in the past year since I’ve found your channel. 🎉❤
Thank you for sharing! Always a joy to watch.
The proof is in the pudding. I have been doing it for three years. And I can tell you it WORKS.
I too have seen comments like that…so negative! It is truly all about changing our mindset…we havebeen drilled on the old ways!
Thank you for teaching us and for the examples you give…lovely to watch❤️🙏😁
Christy, you're Amazing. I think I have a similar situation as the sample you generously shared on this video. I just started velocity banking this month on my credit card, thanks to you. 😊🤩 Should I finish paying off my debt with my credit card before asking for a line of credit on my home ? I look forward to watching a lot of your videos. Would you be able to assist me with figuring out my numbers? I have to watch your videos on how to ask for a heloc. Thank you have a wonderful day. Blessings. 😃😍🥰
Im happy to have found your channel 😊
Kinda got confusing near the end with the math gymnastics. I knew where you were going because i've watched a ton of your videos but might be more confusing for a newb. I've applied your technique and have saved piles
Continue to Bless and Be Blessed!
Wow, totally new concept to me. Giving this some serious thought.
Hi fellow Mora! I hate to say it, but she is teaching this all wrong. There are some glaring problems with her math and logic. See my comment I just posted. Making extra payments is ALWAYS better than velocity banking UNLESS (and ONLY if) you can get a rate lower than your mortgage rate. Never get a higher rate to try and pay off a lower rate.
If only debt with interest is mortgages is it better to just pay extra towards the principle?
I’m wondering the same thing, the cash flow would be adding $6700 appx in 3 moths to the principal basically. It’d be interesting to know the answer to this question.
I think the chunks from a line of credit make the difference because of the interest amortization. I will watch more and ask questions to be sure.
Thank you for giving us your time. I enjoy watching you and learning.
Love your shirt.
I have an honest question. It seems on the velocity side he puts his entire income in every month and takes out what he needs as it comes. At the same time leaving in his disposable income. On the traditional side I get the math but I'm wondering where his disposable income is? I don't see that being added as extra principal payments. I'm thinking if that were to be added to make the comparisons equal it would look much closer. I could be wrong but just what my math was asking me.
@useeatruplaya The larger CHUNKS from lines of credit JUMP to amortization schedule...meaning you literally jump over payments due for upcoming months...actually saving the interest you would have paid over those months. Sometimes (depending on the interest rate) you can jump ahead 2 years on the mortgage saving tens of thousands of dollars in interest. I hope this helps. Thanks for watching!
Great message. Keep spreading the awesomeness.
thank you sooooo much!!!!
You make so much sense!🎉😊
great info thank you so much
I understand what you’re saying but isn’t this situation better served by keeping the cheaper interest rate mortgage and just dumping all available extra cash into the principal on top of the 801 min? Cause that’s what you’re doing with the heloc, so it seems like you’re not comparing them fairly. If you only put 801 into the heloc it would be just as bad as the mortgage
@DefconZIRP It's not a "cheaper interest rate". The interest rate times 2, then add a 0. A 4% rate x 2 = 8 add 0 That means a 4% rate on a mortgage is actually 80%. It's ridiculous. Thanks for watching!
@@VanntasticFinances If cash flow after mortgage and expenses is $1465 and the same cash is applied to the principal each month as principal reduction, my spreadsheet indicates monthly interest payments of 385.42, 381.50, 377.57 for total interest paid of 1144.49. And the new remaining principal after 3 months is 179346.49. This compares favorably to both the remaining balance and the interest payments made against the higher interest loan as described in the video. Simple interest is simple interest, over time the HELOC could accumulate drastic interest as compared to the original principal you referred to if it was paid off slowly as well. The total interest paid over time though is a difference concept than the interest rate.
I won my credit union was not counting my big drop did not cover my payment. I went all the way to the main bank credit card issuer. Yes it did cover my payment. And are training the branch that said it did not.
You are a financial angel sent from Heaven!! Thank you for you knowledge, wisdom, and candor. I Love how you break everything down so simply. You definitely have inspired me to change the way I see personal finance.
@goody71988 It's my pleasure to share the information and get people FREE! Thank you!
Love you channel I’m made progress slowly but it works with prayers . And giveing to Jesus,
What if you just paid the extra cashflow every month? Would it be the same thing?
Is getting an LOC as complicated as the mortgage process? Love your perspective and advice on LOCs! ❤
No it's not hard. I had a pretty decent credit score and I am low income. I don't even make a $1000.00 a month. I'm with a credit union. Should be information on your bank app.
Easier than getting a car if you have equity and good credit. It should be ..it’s your collateral.
@spectator1123 I'm also advanced age (60s) and they gave me an insurance ( loan payment insurance) option which I took because I don't want my family stuck with liens or my debt.
@@hangemhigh3578 I was not offered insurance . Are you sure you got a HELOC? I would make sure it’s not a loan. It’s a different kind of animal.
@@spectator1123 I got a LOC
Thank you for getting good and mad. ❤
I want to make some changes to my life. I am going to look for a HELOC next week.
This is a good plan if your mortgage is paid down well enough for a HELOC & you have a good cash flow after expenses. But what about that scenario where there is no cash flow at the end of the month and your mortgage equity is barely $5k paid down on a $500k home?
Okay im trying to understand this better. But what if you compare this scenario apple to apple and use that cash flow on the regular mortgage payment side and put that cash flow toward principle only. I would imagine u will be ahead more rather than usung LOC to pay it. When u knock down the interest on the mortgage, everything will drop really fast. I understand in some scenarios that is better to use the high credit line on LOC to knock down some debts that don't bear as much interest as a mortgage and use the system to get out of debt free really fast. You will get rid of those 20 to 30 percent interest rate and save on a bunch of payments and turn into cash flow to pay it off really fast. I have not calculated any of this figure but just my thought from watching your videos and some videos of the people against this method. Please comment and let me know so i can use the best method to tackle my debts. I don't have much but just a new truck to get rid of
The difference between making extra principle payments on a loan, regardless of interest rate, is that you don't have access to that money anymore should you need it. A LOC lets you use and reuse the same dollars based on your needs. If you pay an extra $100/mo on your truck loan, that $100 is "gone". If you needed a new tire you would no longer have that $100 to put towards the bill if you paid it onto principle. Velocity banking is all about giving you access to your money at all times.
So if I understand right, 100% of the $2266 cashflow is put towards payment for the 185k HELOC, but it is not used for the regular mortgage payment. Is this right? So how would the mortgage compare if the $2266 was paid towards the principal every month?
Thanks for sharing! Blessings!❤❤❤❤
I think I get it but I’m not 100% sure I wish I could talk to someone about this so I can ask questions it makes sense but I’m still a little confused
I don’t understand, why not just put the extra $2266 a month towards the mortgage principal that’s $6798 in 3 months. Therefore with your total principal is roughly 2600 every month your interest is 385 every month and decreasing… your home is paid off in less than 6 years and less than 14k in interest over 6years…. What am I missing here? Your literally paying 800 a month on interest with your method that’s 500 more your giving away every month….
I did the math. Both ways work roughly the same way. The difference is you kinda set it and forget it this way though. I’m gonna try it for the remaining debt I got to see how I feel about this method
If I understand correctly, the difference is because if you need that cash back for an unexpected expense or something you can take it back out from the heloc. You still have access to that money. If you make the extra mortgage payment, it’s gone and you can’t get it back if you need it until the mortgage is completely paid off.
I think you maybe missing what cash flow actually is. If they were to take that $2286 & put it on their mortgage they wouldn’t have any funds left from their income. That would not be a wise idea
Beans and rice , shots fired shots fired
So what advice would you give im renting already owned a house and flipped it want to move to florida and buy a new construction home. Just found your channel today
Loved you analysis today, I had to introduce you to my wife with this episode. My wife asks, take this same scenario but just take the cash flow and make early principal payments to the Mortgage. Would this work just as well? My thought was to pay off the Mortgage using the HELOC, but just push the cash flow over to the HELOC? Love your thought process. I'm not saying you're wrong, it just brings up some what if's.
I don’t understand how we can use a heloc or business line of credit as a checking account? All my bills come out automatically from my checking every month. Can the LOC function in the same way?
HELOC rates are variable. It can get bad quickly
@SuperJ809 You shouldn’t be using the tools offered at the bank if you don’t have sense enough to use them correctly. Have a good day.
The $801 for the mortgage payment is principle and interest only where are the monthly calculations for property taxes and homeowners insurance?
801 is including the tax and insurance. And if insurance is not included it is still included in their expenses. Banks do not let you take out a mortgage unless taxes and or insurance is included. It is called escrow.
@@vallang4832 You can take out a mortgage without escrow if you put 20% down at closing on traditional non government mortgage FHA, VA. Or if your loan to value ratio reaches 80% or below. I have 18 years of mortgage lending experience.
@missage414 , no matter if you stick with the Mortgage or do the HELOC, you still owe the county your real estate taxes, and you insurance company home owners premiums. Neither will be dependent on your method.
@@vallang4832 Banks may make sure you can afford Mort+tax+Ins, but I'm not so sure they you MUST pay it in the mortgage payment. I always paid them separately. Been paying mortgages on houses since 1985.
I have an existing HELOC and want to try this but don’t know how to start. When I put my income in do I make it as payment to principle or as regular payment and then withdraw expenses?
I do not understand how to spend money ‘from your heloc’. Don’t you get the loan then put that loan amount into your checking account?
A loan and LOC are different. Lines of credit are revolving meaning you can spend and pay back as many times a month as you want. If you get a home equity loan, that's the same as a mortgage or a car loan. It's a fixed amount, fixed payment and fixed interest. You want a flexibility that a line of credit offers.
Ma'am, you are a modern day saint and should go on Joe Rogan 👍
Is it worth it if is a rental property ?? Since you get tax deduction on the interest paid ??
This is a good system and make sense but is it the same as in Canada ？ Thank you for your time 😊🙏 I love your videos and eye opening concept.❤
I live in Canada and it’s working for me so far! I started with an $80,000 loan and it’s now down to $52,000 in less than four months!
@@relaxforawhile thank you for sharing. I love this community too. May everyone benefit from this new concept ❤️❤️
On this video. Do you use the HELC credit line and payoff your home with it? And then start paying that off?
Yes
Just getting started. I have expenses that are only once or twice a year. How do I factor them into my monthly budget using velocity banking? I usually put them on Credit cards.....
I would add up your expenses and divide them by 6 or 12.
Then just make then a line item in my budget?
Sounds to me you use the HELOC or LOC to pay the the mortgage and a little extra each month and you deposit all your money every month into the heloc or loc account to pay the loan of the heloc or loc off then that frees up the loan money again like a credit card and you can pay for all your bills and everything and just keep rinse and repeating this for as long as you need or for how ever long the HELOC OR LOC is valid for. Im probably totally wrong but this is how my brain is interpreting this method.
Can I do this through my bank
Hey Gang, If I got HELOC, used 50% of my HELOC spending power to pay off debt, why is it a bad idea to pay off higher interest Credit cards now instead of paying off my HELOC? I'm still learning, thanks kindly. ;)
What if he just paid the extra cashflow to the principal and not used the Heloc? What would pay off his mortgage sooner?
Did you watch the video?
With Velocity Banking, he immediately gained $3k in cash flow, reduced his mortgage by $5200, and saved $4200 in interest in three months.
Line of Credit is simple interest, where as a mortgage is fixed high interest.
@@adams9355 I actually watched it twice. He didn't immediately gain $3K in cash flow , he gained $801 by not having to pay a mortgage payment increasing his cash flow to $3K. In this scenario, the Mortgage was 2.5%, but amortized, while the HELOC was 6%! But, with putting both paychecks into paying down the HELOC balance, this is where the word Velocity comes in.
You’re right… she isn’t comparing properly… he is actually giving away 500 extra month.
Unfortunately, I don’t apply for a LOC, however credit card is about $2k and empty.i watched the video on how to essentially do the same thing with it. So for now i suppose it is worth a try. i have a extremely high interest loan and want to pay it down $9k how can I use a credit card to do that?is it possible.
Obviously it doesn’t work or we wouldn’t all be broke!!
Sorry I just wanna get an answer to what I’m thinking. It’s true it can lower it down the heloc loan by velocity banking but when the closing time of the heloc I think it’s 10years agreement and need to be paid off in fall plus the interest. How I can pay if I don’t have money to pay it off in full? What will happen if I don’t pay in closing time?
I picked up a 50K HELOC like 6 years ago. It was set to terminate in 5 years. The loan officer called me up and asked if I wanted to extend the HELOC for another 5 years. I said sure, we went on our merry way, them collecting interest and me working on lowering the balance.
I read tge same article 😂
@christy where do you start if you have a negative cash flow, two LOC one almost maxed out and the other is at half. I am watching videos but I’m confused where to start I filled the worksheet out but don’t know which way to go.. can you do a white board to show that
Christy has a slew of videos. You have to sift your way through them.
Take the LOC that is half and use it to gain cash flow. Also consider your expenses, and cut anywhere you can to gain additional cash flow.
Are they both PLOC's?
@@Jesus-kt5dc no one is PLOC the other is a HELOc
@@adams9355 How do you take the LOC and use it for cash flow? I need hand holding what does that mean or look like ?
@@VerniceTheDeveloper the LOC will essentially become your checking account. Depending on the amount of credit you’re able to secure, you’ll use this for most if not all of your expenses. As for your income, you’ll transfer it to the LOC every time you get paid. As for cash flow, calculate what you have left after expenses. As you utilize the LOC and pay down your debts, you’ll increase your cash flow.
Wouldn't it be almost the same if he just took his cashflow of $2266 every month and paid it to the bank/mortgage (of course with stipulation that it goes toward the principal) ?
It’s very similar to. The problem is that you lose liquidity when you do that. If you have an unexpected expense like your car breaking down, you no longer have access to that money. It’s gone, and now you’re in a tough situation.
@@thecrownedjester but he still has a 240k HELOC. Still has liquidity.
@@ryan7714would you put 100% of your cashflow toward making extra payments for am extended period of time to pay off debt? I don’t know anyone who budgets their money like that.
@@ryan7714exactly, I don’t get why you’d choose to pay off a 2.5% mortgage and pay 6% on an LOC, the cashflow should just go to the mortgage directly which keeps the low rate
You both need to watch some more of her videos
Can I get a HELOC right after I purchase a home, or do I have to wait until I have equity?
Yes, you must have equity. Maybe try a PLOC, easier process to apply for than a HELOC. Have a great day.
yes or you can request the line of credit at the same time through who ever is doing your first mortgage or through your bank. you just need to let them know so they can work together if you're going to be using two different banks. you also have to make sure you are giving a down payment larger than 20%, they will only give a heloc up to 80% of the home value. so whatever your home value is minus the amount of the mortgage minus the 20% down will equal the amount that you can qualify for as a heloc.
It works if you have cash flow and discipline. If you have no cash flow,work on creating it.
👏👏👍♥️
All you are doing with this method is putting in his excess cash flow of $2,200 in. If he did the same thing to the mortgage then in three months his principal will be paid down over $6,600 and not just $5,000 amount because he had to paid the interest payments on the HELOC.
All this really is, is putting your "cash flow" into your existing mortgage. That's it.
She’s putting the income of $7280 in there not the cash flow. Try watching the video.
@adams9355 I know. I watched the video. But the $2,200 is part of the 7,300. So, all she is doing is putting the extra cash flow (beyond expenses) into the debt.
Minus the original HELOC amount from the 1st month amount after putting in the income before taking expenses out. It should equal $2,200.
@@conradrichard1492 Don’t forget the correction she made. She forgot to add the $800 to the cash flow, which reduced his expenses and added to the pay down of the HELOC and interest. I also apologize for being rude.
@adams9355 I do not feel like you are being rude.
So, the cash flow she added into the HELOC is $3,000. So, every month the HELOC should be less $3,000. But it isn't. In my example, the mortgage is still in place. Pay the normal $800 and put the $2,200 into the mortgage every month and watch that thing crater $6,600 in three months, not 13 months.
@@conradrichard1492 don’t forget about the difference in the interest in the mortgage compared to the HELOC. The mortgage has a fixed rate and takes majority of payment to interest not principle.
The HELOC has simple interest. This is calculated on the average daily balance. When the income comes in, it satisfies balance every two weeks or however often the person makes a payment to the credit line.
So this satisfies both reduction of balance and interest.
Simple question before wasting anyone’s time: 12 credit cards (ALL were paid at zero until a couple years ago), never a late payment. About half are close to max. No HELOC (renter). Just short of $60K debt. IRS debt approximately 12K (on payment plan). I watch these over and over and finally feel HOPE. Slow going at first? Yes. Does anyone fight that inner voice that is DEFEAT you constantly have to put in cheque? Just knowing I am not alone means so much. ♥️
Try and get a PLOC and follow the VB Method.
@@adams9355 OMG, while binge watching more, I found the NFCU transfer option. GAME CHANGER. This community is so encouraging! Thank you!
Your math does NOT work. In the mortgage calculations, you're not including the additional $2266 (really cash flow payment is $2338, income minus expenses, so I used that) into the mortgage. Other people here mention the same thing, and some justify you by saying it's all about having the money available to you when you need it, but that makes no sense.
I calculated the life of the loan vs the life of the HELOC, adding in the additional monthly payment on the loan, and your method fails miserably. Interest paid in loan = $27282, HELOC =$49539. Years to pay off loan = 8, HELOC = ~8.5 years plus the additional 3 years already paid on the mortgage for a total of 11.5 years
For the people mentioning having the cash available if you needed it, then just take out a separate HELOC if needed! You can pay $22K interest in the HELOC and still come out ahead just by putting that extra cash flow money into the mortgage.
What am I missing here?!
Aren’t we in April of 2024?
This is an older video but she cut it down.
Only for another week, enjoy!
Of course you'll pay the HELOC earlier because you're throwing $2266 on it every month. While for the mortgage you're only making the minimum $801 payment. I don't think we're comparing apples to apples here. I am not trying to ruin your video but maybe I missing something here.
$7280 at the HELOC, not the $2266
@adams9355 sure but I was just talking about the cash flow.
Christy, you might want to delete some comments on here.
I reported them! You should too because if they get reported enough they will be removed permanently!
She's misleading you, whether intentionally or out of ignorance. The premise of the video was supposed to be "Velocity Banking is better than making extra payments" but then what she actually showed was "velocity banking is better than doing nothing," which is true, but if she compared it to making extra payments, you'd see that you end up paying WAY more interest doing velocity banking in this example, because you went from 2.5% to 6%. A lower rate is always better. Prove me wrong.
Also you can see plain as day, in the "do nothing" scenario, you were paying $801 per month, some of which was principal, so you were paying less than $801 per month in interest, but in the velocity banking scenario, you were paying upwards of $894 in interest per month. This is smoke and mirrors people! I used to teach this stuff just like her until I actually did the math and figured out it's all wrong!