I briefly taught personal finance to high schoolers, they didn't want to hear it. the second it involved anything other than a get rich quick concept, they were out. TikTok brain is real.
Not necessarily true. When merely 50 years people knew what a woman is and now we don't... You know they're not telling you something. Interest this and interest that. We ventured too far in the land of make believe and now they're erasing fundamentals. What difference is it gonna make if all they talk about is A.I. and synthetic lifestyles when it'll be your brain in a pickle jar while they syphon all of your biometrics while you think your simulated world seems real but you're still struggling? It's pretty obvious what we need to do but hard work and team work seems to sound like cumbaya to alot of people who just want passive income and the convenience of Door Dash.
My wife and i paid off our house and we are debt free in our thirties. We now sold our home and we are moving to paraguay. Financial freedom means true freedom.
@@gorraksmashskull This being the video? We paid cash for our vehicles. We were smart about school. I went to trade school and got paid to go to school. My wife went to nursing school and she had her loan forgiven because we lived and worked in a rural area of Canada. We cook our meals ourselves. We pay off our credit cards every month. We buy used furniture, used clothes, used tools, used everything. We do not take extravagant vacations... If any vacations. We saved and saved and anytime we had $10-20,000 saved then we would put it on our house. No one understands and they still don't understand us. Whatever. We are making the most of our life now.
Yes we bought our house and paid it off in 10 years. We bought our vehicles used and paid cash. We buy used clothes and furniture and tools. We do not take vacations. Get out of debt and invest your money and let it work for you.
ANY video that looks like it's made in the 90s...when it's really made like a month ago ...is ALWAYS a phenomenal watch. The content is in the INFO and not the theatrics!
Christy, I must say just how effective this has been for me. I was quite skeptical at first and I felt like I had made a huge mistake when I went ahead and put $10,000 from my LOC on my mortgage last December. But I kept sticking with the principles you have laid out in this video and I have found over the last 12 months that I have paid just about $30,000 off my mortgage this year in conjunction with my regular monthly payments. I have not felt more poor, and I have only paid a little over $400 in interest on the LOC this calendar year. I am blown away at the fact that I will most likely be mortgage free in the next 3 years instead of about 15. I will be about 28 years old by then. You have changed the way I think about money and have given me a lot of hope over my finances. I am forever grateful to you and I wish you the best and keep up the good work!
It’s the same exact thing with student debt. People pay back what they borrow and still owe thousands of dollars years after school because the vast majority of their money had gone toward interest. This is predatory.
I bought raw land (4 acres)...paid it off as fast as I possibly could... and built my home with my own two hands.. paid cash as I could afford it...At 45 years old II am living completely debt free .... All I did was work hard and live within my means...It is absolutely possible for most people to do the same if they are just willing to put in the effort... GREED and ignorance is destroying our society.
@@yeoldegrayCat Make sure to research the costs in your area. Getting power to a parcel can be really expensive. Water and Sewer hookups are not cheap. If you're going with a well, make sure to find out how deep you need to go for water in the area and what the quality is (do you need extra filtration) If you're going with septic, make sure the soil can perk, or an engineered septic can get pricey. Know how strict the local jurisdiction is with road building, environmental regulations, etc. I don't want to discourage you, but it will require more work than looking at properties with a realtor.
@@Zt3v3 My property already had well share and septic installed... my power is completely off grid solar with battery bank and generator back up..(No Power company involved)...I will say that I got extremely lucky with finding my land as well as the person who I purchased it from.. (Owner carried the contract)... The building codes here were pretty lax but have gotten a bit stricter in the last decade or so. Timing is everything in my case.
I have one, but I basically live in rural Wisconsin, one of the lowest cost of living areas in the country. Retirees from large cities are flocking here in droves. They are building giant condo buildings just for them!
@@robertpulliam4152 in certain regions, there are no "new house" restrictions. But the majority of big towns prohibit it. Not to mention creating new houses in the sense of using land outside of the zoning permitted by the gov. This makes it so the real-state has a monopoly on the house market, leaving these prices to go absurdly high due to the millionaires and hedge-funds buying them for profit...
Not only did I feel like I walked in a high-school classroom when I clicked on the video, but it made me wish this what our teachers taught us back then. THIS is education.
Another way people get scammed are by vehicles. I simply moved right next to where i work, got rid of my car and now i save 1000 a month and thats not including repairs. Its insane, i also lose weight
Not everybody has that type of privilege/luxury, we're I'm stuck there is no work that will pay enough to cover my bills, i have to travel to work and no I do not make enough to move closer to my job. And no, I'm not going to be able to find a higher paying job in my area.
@@albinoyak2755 dude I lived in concepcion texas which is a town of 35 people corpus christi is the nearest city, which is 1 and half hr away I raised my siblings while saving for 5 years, to get out, if i can do it you can too
@@albinoyak2755 I don't think you know what the word privelege/ luxury means. Get a second job, I lived in my car for almost two years just to relocate. There are people who are in worse positions than you that find a way.
@@irrecconI suspect it's total cost of car ownership. There's the car payment, auto insurance, initial sales tax, inspections, tag/title cost, monthly fuel costs, maintenance, and tolls for some folks. When you add it all up, you realize that having a car costs you a lot. It's not at all practical for me not to own one though. But, some people can sacrifice for a lifestyle that allows them to be without one. I wouldn't assume that it's "privilege" like a previous commenter said. For many that do it, it is only possible through determination and years of hard work and personal sacrifice.
Appreciate the concept but I'd rather just pay the eleven hundred dollars extra each month and not pay any interest at all to the bank 46 months at a time. In return, I would pay off my house 284 months.Have a great day , super simple
This is something that no one in a bank will tell you. I've long said to people around me that mortgages are a scam and you will pay for your house 3 times. Not a single person believes me they are being robbed blind.
AND AFTER YEARS OF PAYMENT, PEOPLE ACTUALLY THINK THEY OWN THEIR HOME!😂 THINK AGAIN, STOP PAYING YEARLY TAXES AND THE HOME GOES ON THE CHOPPING BLOCK 😊.......SO , YOU REALLY ARE FOREVER RENTING YOUR OWN PROPERTY!!!! MEANING, SOMEONE ELSE CAN POSSIBLY GRAB IT , IF YOU S.L.I.P. ON THY PAYMENT HAHAHA 😆 HAHAHA, WELCOME TO CAPITALIZISM.
People don't realise that compound interest is a thing, and as little as 2-5% can grow exponentially just after 5 years into esentially doubling or tripling the amount you agreed to pay on initially.
Me too, has to watch it twice to get the grip of it. The first part where the $1,100 income surplus was used to deal with the $10k credit line payment got me confused between what she was saying vs the numbers she was showing at the very begining of this part.
@@petervallejo5603what’s the term or name for this trick? I still don’t understand really so ima go watch other videos of ppl explaining it in different ways and come back and watch this
@@barryfondant6032 it looks sound to me as well. When I sold home loans, interest rates were much lower. But now that they're at comical levels of 7-8%, you are literally paying more in interest than you are for the home. Not to mention a home purchased 20 years ago for 125k is now 350k+, so many new homeowners are looking at the prospect of paying a half million dollars or more in interest to purchase a home. That's simply not feasible in my opinion, unfortunately we are programmed to just do that and don't ask questions.
I feel like that line of credit loan of $10,000 won't be paid off after 6 months, there's some part at the low right side she's left out. It would actually take more months.
We used this same concept years ago after I took a mortgage brokers course and realized how mortgages were calculated. Paid off our mortgage in less than 7 years. I tried to explain it to people but no one believed me. Like you said, people need the ears to hear, bless you
Can you explain the LOC better? For example is it getting a $10k personal loan from the bank? Does $10k get put into my account and then I put my income into the loan? Wouldn’t that mean I would be paying off the personal loan? I am open ears, thank you
@@brightboakye3996 The way I see it is that you’d be using your loan as your personal banking. So yes, you’d get the 10k and put it towards the mortgage, then your income and expenses would need to be calculated against that original 10k amount. Your payments would essentially be whatever your cash flow amount is (In this example, it’s $1,100). This would require you to be dedicated to your goal of paying off that loan and not buying extra things for yourself while paying off the loan.
@@brightboakye3996the line of credit is an agreement by the bank to loan you up to a certain amount of money. It's been traditionally used by businesses (properly) to deal with the variation of income and the expenses they need to pay. A business doesn't necessarily have all the cash up front to pay all their expenses, but they do have ongoing income and value tied up in business assets. So, the bank agrees to the line of credit, and the business is going to use it to take care of its day to day operations and smooth out the "hills and valleys" in its income. So they use it just as she's described: they dip into the line of credit, using it to pay things as they come up, and using their income to pay down the line of credit (so as to not carry a balance like most people do on a credit card). So it is a loan, but it's not the bank giving you all the money up front, but they've agreed that when you need it, they're prepared to front you the cash. And instead of a loan, you decide how you're going to employ it. The idea of "depositing" your income into the line of credit is that, instead of just sitting in a bank account, that money is actively reducing the credit you're using (credit that is costing you money) while also increasing your buying power (since you're reducing your utilization of it with every deposit you make, you have more freed up credit).
We're being robbed of practically half out wages from over taxations ,rich enjoying tax shelters by paying themselves minimum wage , hiding profits in business investments Trumps words of a rigged system for elites are pure facts ... ✌️🙏☝️😎💪
This may be a stupid thing but im young and new to building credit. Recently my credit score just dropped from 750 to 619 but i am able to use *Pecuniary backdoors* websites to get to an 800 I was stuck at 750 for a while and I’ve been trying to get to 800. I know in this video you think these methods work for ppl with below 400 but i wanted to make sure someone with over 200 could use these websites.
And time, I mean talk about a 5 year plan, lol. She's something else❤. I hope she knows that there's currently about 3.3 acres per person(newborns included) in these United States, and speaking of, cheap (especially agriculturally zoned) land is one of the only investments I consider a necessity for all young children.
@@KoolAssKouple yeah I looked into how much of the United States is unused and then did the math. Another helpful thing is knowing that what's called "uninhabitable" right now is not actually uninhabitable, nor will it be the exact same in the future. Especially after taking a business trip, which you can "write off", to said land and planting an array of fruitful commodities for their futures. (A plain and easy example is cherry as it's not just fruit but also wood if need be plus, with poisonous leaves, animals don't seem to eat them.) It's not what I have planned exactly, but let me know if you want video proof; I recall seeing something from a "fruit explorer" which I can probably source to show you his friend's thousands of trees in the desert with literally no maintenance according to his own words.
135,000 loan at an extra 1,100 a month still takes X-months = 135,000/1,100 free cash per month. this is X=122.72 .months. So 12 months to a year. So that is over 10 years of scrounging to get the loan paid off. Yes interest savings can do it in 7 years. But it is not realistic. People have to enjoy life. Or they buy a bigger home.
"If the American people ever allow private banks to control the issue of their currency, first by inflation, then by deflation, the banks and corporations that will grow up around them will deprive the people of all property until their children wake up homeless." - Thomas Jefferson
To fix this I propose a 100% reserve system for on-demand deposits, the abolition of the FED, abolition of currency privileges via exchange rate controls & legal tender's contractual exemptions to competing currencies (gresham's law), the abolition of currency discriminatory taxation, a complete deregulation of the financial sector, & a strict enforcement of private financial contractual arrangements. This would eliminate all fiduciary media & inflationary credit expansion.
@@lupea8079 That's a good point 👍🏻. America's are not happy about all the inflation and devaluing of our currency, its theft and corruption at the highest levels.
Hi from Australia , Christy I just want to add my voice to the enthusiastic support that you are receiving and which you so deserve. I wish that I had known all this twenty years ago, but better late than never! You are giving people so much here, and I do sincerely hope that you are being rewarded in return. Best wishes.
I remember every year my dad looking at the yearly statement and noting how little actually came off the principal. I decided early in my life i would not become an indentured servant.
We're not supposed to be taught EVERYTHING in school. There'd be far too much to teach. People should understand the math behind things more than the concept, or being able to read tricky contracts.. Our parents and other adults should be able to teach us things like this. Unfortunately, most of them never figure out the scam, either.
8:44 But does the final LOC payment at 6 months allow for that month's $4100 expenses? Wouldn't you need to stretch the repayment of the Line of Credit out to 10 or 12 months to pay it down with just your monthly Cash Flow of $1100? What am I missing here?
your correct. I'll paste my comment here because i went down a rabbit hole with this: I mean...... This is just paying an extra $1,100 on your mortgage each month with extra steps and more interest is it not? You would get a better result by simply paying $1,100 towards your principal each month directly. Your calculations don't factor in having to pay expenses again on the 6th month. If you keep putting your expenses on the line of credit it would take 10 months to pay it off not 6. Think about it, how do you pay off 10k debt in 6 months with only $1,100 extra every month, that doesn't math. I ran the numbers right now and doing this exactly as you say your line of credit would balloon to over 40k balance by the time you paid the house off, however if you do this same strategy apply 10k on LOC every 9-10 months, the LOC will actually stay stable. If you compare dong this vs just applying the $1,100 cashflow directly to the mortgage principal you come out ahead by 2 months sooner mortgage payoff and $5k less interest paid overall by the direct to principal method and that's way simpler.
I was so confused from this, but after going through it again and again, I found multiple errors in this calculation. 1) You need extra 1100 monthly cashflow, which has nowhere to come from 2) You can't pay down the 10k credit line in 6 months - You need 10 months, as there still needs to be the 4100 for monthly expenses. 3) as far as I found on the internet, not all banks (not even in America and especially not in Europe) offer the option to put down a bigger payment for the mortgage with no extra cost, which would further complicate this whole thing 4) I couldn't find any offers on lines of credit which would allow anyone to go interest free for 6 (or actually 10) months. Fot those reasons I call this idea really misleading, maybe even harmful. I don't understand, how there are so many people praising this method - are all of those just bots or something? Am I missing something here?
@@filipsochor8277 she didn’t assume that the loc would be free of interest in the video. The extra payment made toward the mortgage is going directly to the principal after the monthly payment is made. You’re saying banks don’t offer the option to pay off principal without a fee?
@@Adamjv123 If I understand You correctly, you are saying 2 different things: 1) she didn't assume the LOC to be free of interest 2) you ask me about the banks. 1) yes, you are right, I missed it in the calculation when I was watching the video while writing my first comment. 2) yes, as far as I could find (and again, I am talking from Europe, so I may be wrong) there are banks that don't allow that. If you want to put down a bigger payment than regular, there will be extra fees. I guess not all banks in Amerika are like that, but definitely what I found seemed to be like that.
From the very first payment I made on my mortgage, I paid an extra $500 on the principal. Now, 3 years into it I'm paying an extra $1,500 a month and I can't wait to get out of it. This is great information.
@@whitketchum make more money or cut expenses. Do you have a car payment? Do you eat out or order food? Do you smoke or drink? I cut $1500 a month out of my budget by cooking at home, packing my lunch and deleting my amazon account.
I’m coming into a large sum of money and I’m thinking of doing something similar. Thought of just refinancing to get a better rate but I think it may be better to just make a lump sum payment or do what you’re doing.
This is ridiculous and sickening. 😢 I plan to own a home in a few years, once I build up my credit. People truly do perish because of knowledge. Thank you for the knowledge!
This is bad advice, isn't it? Please correct me if I am wrong. run the numbers. Essentially you are making $5500 in early payments to your total owed money after 5 months. Then you are making a lump sum payment of nearly all your income for month 6. This is not wise. You should have made your early payments to your mortgage of $5500. Yes, open your HELOC so you can have available money in case of a difficult month. Basically, on the 10K that was not in your mortgage for 6 months, you saved about 350 in interest. But you paid $469. Not sound advice here. Sorry. I am interested to see if you delete my comment!
@@cherylaguilar5421 I don't think you understand. In the scenario, They already made an 'early' payment in the form of $15,000 down payment. The LOC isn't used for anything extra. (That's where credit fails you, and profits them most). The 10k lump every 7 months accelerates the reduction of of the mortgage's capital debt. Paying off the LOC $1100 a month is less effective than using the full monthly paycheck ($6k was it?) as is lowers the average for the LOC's interest charge. It's still a net reduction of $1.1k/mo off the LOC, with the appearance of an average payment of $1428.57/mo towards the mortgage, which is still a net positive for them. HOWEVER, each 10k slide of the amortization table saves a mountain of overall interest, so more of the capital is paid off faster, with less interest being incurred along the way.
If mature you mean tricking people into paying more in interest when they could just take the extra 1,100 every month and put it against the mortgage and actually pay it off faster, then sure. Under what she's telling people to do, people are paying $9,000 more in interest than if they were to just take the $1,100 extra every month and make an additional principal payment. No line of credit needed.
@@dakattack8900 geez bro chill. You ever wanted a snowcone or had a brake line go out? Better to have and not need than to need and not have. Also, I may have initially misinterpreted what you typed there. I c u now :) carry on then!
@@dakattack8900nothing worse than being house rich and money poor … but sure, put ALL the disposable income into the principal. Or ya know, leverage it like she’s suggesting in the video
Do whatever you can to not buy in the system. I'm becoming a merchant marine and will build my wealth for the next 4 years. I'm not paying rent. I'll have the best health care on the planet and I'll be doing something I love. I'll be buying land and building a tiny home (which I'll build myself). Don't throw in the towel! Believe in yourself! Find channels like this that are positive and packed with information that helps you! Love your channel! Hugs!
They taught economics at the most…but schools assumed that parents will teach finances to their kids lol or the education system doesn’t want us to be really educated
I had $3500 stolen from me from Key bank. The bank would not refund it. Do not bank with KEY. If i can stop one person from banking with them id feel better
@@timekabolden5309 No they are just like any bank. They did their own investigation and made it sound like I was involved somehow and said they wouldn't refund the money.
Don't feel bad bro. I have 3.8 million seized on me because Bitchen was hacked like a couple months ago or so. Now i can't withdraw any money. Can't tell me a time limit IF I'll ever even be able to get those funds back.
I learned this in my early 20s when I was broke. I retired at age 45 debt free and purchased commercial real estate. My net worth increases $100K every year after a very comfortable cost of living buget. Not bad for a 9th grade drop.
@@RegandNiq Step 1 is to start a business, any business. Mow lawns, sell shirts. Step 2 grow the business slow and steady with employees making you money. Grow too fast is problems, too slow is problems. Understand you don't have to be a plumber to own a plumbing business. It helps but not required.
@@viperrr6886 Houses? Never! Commercial is best. A business will rent the space to make income so is more likely to pay rent on time every time. House renters late pay, no pay, fix this, problems. Commercial 10yr return vs residential 15yr return.
@@greenmoxywhat kind of properties do you buy now that working from home and e-commerce is growing? Meaning, do you buy office spaces? Or laundry mats? If that makes sense. I’m learning and genuinely curious. So if it sounds like I don’t know what I’m talking about that’s because I don’t hahah
It’s crazy how many financial traps there are out there to make us stuck and pay the government/banks every penny we get,I appreciate this woman for being educated and kind enough to share this information
Who are the biggest banking families? Why are these names always tied to the global elite being corrupt and draining humanity for over 150 years? People need to stop calling people crazy and do some research, we USA is being ran as a corporation
In 1983, i had a class that covered many aspects of business. For instance, the brilliant teacher explained that, when used car shopping, palm a magnet in your hand and run it along the body lines, fenders and other 'impact prone' parts of the car, if there was an area with no magnetic pull, there was body filler (aka BonDough). Of course, cars were still made of steel back then. He also taught us about credit and loans. The numbers you talk about here (95% of payments during the first year being all interest) applies to ANY loan or credit, not only mortgages!
I'm blown away. I have to watch this several more times to completely understand this. I sure wish I could sit down with this lady so she could walk me through this.
Classes in compound interest by itself should have been a requirement to graduate from high school. That's what a lot of the student loans crap is about...a lot of people never understood what compound interest was until after they got that far in college. By then, it was too late - thousands in debt.
True they need to teach personal/business management skills in high school as a requirement not as an elective. If it still is one. Also kinda feel allowing this kind of predatory business behavior is wrong.
I received a small settlement years ago, 97K , I bought our home. Every idiot was telling me to buy a Jag or a Porsche. I bought our home still living in it after over 30 years, and will die in it. Our cars 2 of them are over 10 years old but paid for. Here where we live corporations have been buying every house they can,turning them into rentals the average rent is between 2K & 2.5 K they are turning this country into a nation of renters. Now they want to charge people for every mile we drive, that is a thing! nickle, and diming everyone into servitude financial slavery. I feel sorry for the young folk I truly do.
@@MatthewCashew3 Blackstone LLC has been buying homes all over, there are others like them. The block where I live has twenty houses ten on each side. At one point there were all family owned today only six remain, the other fourteen are rentals. Warren Buffet, Robert Reich, Jamie Dimon are warning of an impending housing crisis. The American dream of home ownership is less, and less attainable today, than any other time in the past.
I agree Grady. I'm an independent college student, so I will be and have been navigating this insane financial world for a minute now. The best thing we can do is educate ourselves on how it is all changing. And shoot, if I have to live out of a vehicle, or sacrifice other "luxuries" in order to remain financially free in the end, I'm going to do it. The game is always changing, the smart will adapt, and the others will unknowingly contribute to the massive wealth disparity in this country. Financial literacy needs to be taught more in this country. God bless.
@@deirdremorris9234 1) she forgot to account for living expenses in her last month with the line of credit. The $5200 can cover the LOC balance but they would only have a few hundred left and still need to pay expenses. Which means they would need to take out almost $4k from the line of credit. 2) She's effectively putting the cashflow amount of $1100 on the principal of the mortgage but instead of putting it directly on the mortgage she's taking out new debt at a higher interest to then put the cashflow on the mortgage while paying interest on the cashflow and living expenses. I ran a comparison of using the LOC vs just putting the cashflow on the mortgage. Putting the cashflow on the mortgage pays off the mortgage in 85 months with a total interest of $40k. Using the LOC $3.1k is still owed on the mortgage and $6.6k on the LOC after paying a total interest of just over $45k over the 85 months. I can't think of any scenario where taking out debt with a higher interest rate to pay off a lower interest rate debt makes any sense.
Idk but something is off here. I went on my banks app, then a separate app to do tge math for my house. I owe less than 135 and have been placing 10k every yr on my principal from taxes also my IR is below 4. Never more than 24mths taking off every yr. She said 7yrs worth of payments smh. She's full of shit!
@romellobelo5443 So, what she's telling us is a crock of $h!t? Based on your mortgage and calculations, your payments and interest rates yield the same results or better without doing a line of credit as she described?
@@romellobelo5443@seaor2k122 I already debunked most of this in a post. Yes, it is entirely incorrect. You can't take out a higher interest loan that compounds just like a house and expect to be better off in the end. Putting down payments on a house is a bad idea in general, but its even worse if you do it with a higher interest loan. This is an example of the worst possible thing you could do.
@@seaor2k122 Her method is so wrong, its hard to know where to start picking it apart. Yes, this method will only work to make you more poor, don't use it.
@@seaor2k122 The math breaks down at 8:20 when she says, "*gasp* month 6, it's paid off!" Sure, except you just put $4969 of your $5200 paycheck into paying off last month's expenses, and you have $231 to pay this coming month's expenses of $4100. Where is that other $3900 going to come from? It either has to come from other money or from the line of credit. The way she did the math is it comes from other money, which means she's actually factoring in these people paying an extra $3900 every 7 months. The hint that something is obviously wrong is that the balance on the line of credit is only dropping by about $1000/month, which means it will actually take around 10 months to fully pay it off without this magic $3900 coming out of nowhere. That throws off the rest of her calculations, too, meaning the actual savings is less than what she said. Much simpler: just put that extra $1100 toward the mortgage every month, and you'll save $172,275 and pay it off in 7 years, 2 months. No handwaving an extra $3900 every 7 months from out of thin air, no convoluted schemes.
If anyone would study their mortgage bill and amortization schedule you could see this for yourself. Once I did I talked to my husband and told him we are going to end up paying $350,000 for our $100,000 house if we don’t pay this off. Took us about 2.5 years, but we have been mortgage free for 10 months.
Thanks! Wow !!! I have 12 homes and paid them off the old fashion way of extra principal leaving me short on cash. Out of all the courses and finance lessons' I've taken this is the best for a small landlord like me.
Look into it deeper. Think it through. You will see that she magically made the month 6 expenses disappear with no justification. Then you will realize that her argument is full of shit lol
@@kyles234 why yes, taxation is theft by a big gang holding us accountable of the world we live in while saying ''this is for our best'' but not letting us have any real impact on it.
You left out the fact that the bank had no " consideration ' in a mortgage and your signature was collateralized as always to create fiction numbers out of thin air and the bank presidents know it just like the fed never printing interest for the money it loans to go. And banks etc. It's privately owned too and we redeem those promises to pay they don't Go to a mint or fed office and ask em to trade ,silver , gold or any non paper promise to pay or consideration They gonna laugh at you High frequency radio Will teach you more if you care to take time to learn
Looks are commonly deceiving, I've been told. Consider perhaps, con trolled op pos it ion. This is called a 🕸️ for no Good reezinz. Finding da curious flies.
I've been debt free for over 10 years and people still can't understand how I've done it. The idea of working for 3 or 4 months a year just to service debt is pure insanity. I've lost jobs and been unemployed for a year at a time and still no debt, just savings. Its a great feeling not having interest payments to think about.
Please explain how you can go without income for months at a time and not be evicted. Are you on welfare? Are you married to someone who pays your bills? Are you retired?
@@selohcin Like I said, no debt and maintain savings. Just because I have money doesn't mean I spend money. People think they need all the streaming services, I use none. People think they need to drive a newer car. Mine is older with low mileage and has been paid off for years. Could I have a bigger house? Sure, but I don't need a bigger house. Spend less than half of what you make and save the rest. I have a good friend who makes 85k a year and is broke all the time. I have made 85k a year for a couple years before the company goes broke and I have 50k saved. My cell phone is 30/month because I pay a month ahead and paid for my phone up front. I don't have cable because why would I? I don't eat out because I can cook for myself for a third of the cost. Its not hard if you decide to do it. I value freedom above all else, and not being a wage slave is freedom.
@@selohcin Savings. Save money instead of accumulating debt. Stop spending on things you don't need. Then, when you're unemployed, live off the saved money until you find another job. Oh yes, and possibly use the government programs that you qualify for between jobs.
You can also get into a trade union. Work 5 to 8 months out of the year and make near or over 100k, 200k + and get laid off. Then get a paid vacation for the next 6 months or so drawing max unemployment. If you don't want to work your life away and still make a healthy income.
@@ragedsycokiller Lol, that’s still a limited mindset. You have to be willing to sacrifice your wants for a better outcome that will inevitably require hard work & diligence & again - going without.
@@TrickleCreekFarmhaha I found a 3 bed home one town over for $210k that needed a new roof, new flooring, every room remodeled, all new appliances, septic system replaced (tank was dug up), and then some... You can't find good deals in many areas
Idk how I came across your channel but im about to binge watch everything on here. When I bought my first house in 2016 at 25 I threw up after closing when I looked at the amortization table. You don’t know what you don’t know until you do.
@@danoliver7161 right the complete irony is that shes selling courses too!!! HAHA they are getting robbed just not by who they might think.. this lady fishyyy af lol also her math is off 14% of 10000 even averaged is like 1000 bucks a month in INTEREST not 117
There's a reason for which "they" made sure this country didn't traditionally learn how money really works in high school. Thumbs up if you know we'll be better off as a country by having real conversations and focusing on the truth about EVERYTHING.
I like that "REAL conversations" because most conversations are literally just fake, where people lie back and forth (at their own peril, too) about the issues and then pretend they came to an intelligent solution.
That is the truth unfortunately. The Prussian model America decided to use to inculcate its citizens has done it's job of shutting down people's free will and critical thinking. A lot more people are finally waking up to this all we can do is spread the word and use this knowledge against the powers that be. 😉
@@kowboy702 while I would agree one needs to get off their ads and not expect to be spoon fed the info. It takes a desire to understand and use the many resources available. Public libraries abound that contain this type of knowledge but other than basic finance, like how to manage a checking account etc, in high school during the 70's, unless you chose business classes as electives, then no, it wasn't taught where I went to school. Other school boards around the country may have arranged classes differently. Regardless, the education model used in this country is a mess. I have quite a few teacher friends and family and I've heard a lot of stories from their classroom experience. I think home schooling would be preferable at this point. America has been on the slope of decay for a while now. Its truly become what Orwell envisioned. The technology has been here for a while and gets more and more intrusive every day. We have power each time we choose to make a purchase using the fiat debt system we've all been duped into believing in. It will eventually crumble. They always do. Governments around the globe are pushing CBDC's as the answer. We should reject this outright if we're to keep what little financial control we have using cash that's inflated and becoming more worthless each day. So I would say thanks to Christy for bringing this information to as many as possible whether it's new to you or not.
8:23 Mistake: The bank loan cannot be paid off in 6-7 months. Because you did not take into account the expenses of $4,100 coming in for that month. If include expenses as previous, it would take 10 full months to pay off the bank loan.
True. Using her scenario, the extra $1,100 in cash flow, if applied towards the principal on each monthly payment, will lower your payments to a term of 85 months and total interest paid to $41k. The ONLY way you can pay lower interest, is if you pay off the mortgage earlier. The ONLY way you can pay lower interest on the mortgage, when using a LOC or any other loan to pay off the mortgage, is if that second loan has LOWER interest rate. That is why I don’t like how she just brushed off the interest rates in the very beginning, “whether it’s 2% or 7%, doesn’t matter.” It matters A LOT. Interest rates are king here and what you should focus on. For example, I have a 3% mortgage. You bet your ass I’m riding it out to 30 years. When accounting for inflation, that 3% becomes 0% in the eyes of the bank. They WANT me to give them their money back because there are HIGHER rates to be got in the current market. But I’m not giving them their money back so quickly, I’m instead investing my extra money in the markets earning 10-13% nominal rates. Her advice is bad, tbh. Really bad. Imagine living the next 85 months on a LOC, with no savings and no investments. All it would take is a sudden high expense to make the family pay the 14% rate for a longer time than necessary.
I’m a recent college graduate and I barely know anything about housing in general. Do you have any advice as to where I can start to learn about financial literacy?
I got my real estate license a few years ago, and when I was going through my class they explained the math for an amortized loan. Once you do the math, you’re paying more for interest than you are for your home. That was the start, but after a few other revelation I was so appalled that I couldn’t even practice real estate once I had my license. It felt so disgusting to involve myself (for profit) with something that was so obviously unethical.
So what? That's the risk they take loaning idiots money over 30 years. Do you have any idea the risk of a fixed rate mortgage over 30 years? In Europe most mortgages are variable rate....because rates change. In the US the interest rate risk is on the banks, not the individual and that's costly. The banks take on huge risk taking such a long fixed rate loan and they are going to charge you to buy your house for you.
I can’t even express how moving it is to hear someone giving 15 minutes of solid helpful advice instead of peddling some six hour webinar of the same information, nothing more, at an exorbitant price. You are a treasure to our country and dear to its future. I shared this video with my loved ones and asked them to subscribe. Thank you ma’am!
This is terrible advice. You’re accruing more interest with this elaborately ridiculous and ill-considered plan. You would lose more money by doing what she’s suggesting here because the interest rate of the HELOC/LOC would be higher than simply leaving your total loan amount in the original mortgage at a lower rate. Just pay extra principal and you’ll save more.
Gold knowledge! Maybe this is the reason why "finance" is the most requested course for HS and college currently today. Kudos to you for sharing your "wealth" with others. Appreciate your contribution to my family.
Loc isn't paid in 6 months. You forgot they have 4100 of expenses on month six and that needs to be accounted for as they have no money as they used their money to pay loc.
I ran this in a spreadsheet with her numbers. You could only pay the $10k every 9-10 months. It would take ~7.5 years to pay off this mortgage. If you took that extra $1100 and just paid that toward the mortgage every month, you'd actually pay off the loan two months faster, but you'd have paid $4k more for the overall loan.
@@magma9138 I would rather people build their wealth by having investments. Paying off debt feels nice but isn't always the best. Considering 12k a year will turn into a lot more than the interest saved.
@@mrdanwilson1 Does the $4k you pay more on the loan take into account the interest you paid for the LOC along the way? I think if the interest was included, it would probably be cheaper just to pay the extra $1100 a month to the mortgage
I’ve run the numbers as well. I agree her math is incorrect. LOC is paid off every 9 months. This method costs the borrower about $3,500 more than just paying an additional $1,100 towards the mortgage every month.
I rolled the ghetto lottery. My dad got unjustly shot and killed by police and I was able to pay for a house in 1 large lump sum skipping all the mortgage bs and bank events.
My condolences brotha, no amount of money can bring back a family member. At least his unjust sacrifice has provided a means for you to build a more empowering legacy for your family 😢
Paying an extra $1100 (free cashflow) into the mortgage each month would have nearly the same effect. It would save $172,214 and reduce the time by 7years and 1mth or so. This could be useful for those that don't have access to a LOC.
This is correct. Using a line of credit at higher interest than the mortgage actually costs more than just taking that extra $1100 and applying it directly to the mortgage. There's no need for the line of credit.
Is it though? My understanding from the video is that the 10k chunk all at once would alter the amortization faster. Rather than lowering it slowly over the course of 9 months.
So, am I missing the 10k amounts , what’s the interest on the 10k? 150k house is a shack in 2024. So if they were able to pay off 10k in six months surely they could afford more than 150k house. Seems quite dumb.
@@kerryburnett5240you didn’t listen very well. They pay down their mortgage with a line of credit. If you follow the link to her website, she talks about a client with a $500k loan but it’s all the same idea. Also-some of us bought our “shack” a while back and that’s the amount we still owe after living in it for 10 or 20 years. So it’s not dumb at all. The only problem is that even with great credit, the bank will sometimes turn people down on the line of credit.
This video completely changed how I think about mortgages and buying a home. I bought my first investment property in cash and now am so happy that I did. Thank you for helping us all understand.
We are looking at a house now and with this market if you do a 30 year loan and never pay a penny early you will pay 1.5 times the cost of the home just in interest.
You're talking about governments who colonized, massacred, committed genocide all over the world, enslaved millions, assassinated, created coupes in middle east to destabilizeand put their puppets in there to rule and silence their countries as they steal the resources. AND they didn't give a damn about thousands of children massacred by Israel, US and europe governments but when it's money like their ships full of oil/cargo was at stake...well, they went to war and bomb Yemen. You're talking about the most ruthless mobsters, thugs in the entire world who went and killed 4 million Iraqis, who bombed Hiroshima where generation are affected for the rest of their lives and who want to preach morality. The scum of the earth don't care about legalities but what they can get away with on the back of civilians, even if it means drawing blood from their bones.
Well it's been illegal throughout many time periods and places for the last 2000 years. Usury was illegal under Christian kingdoms and both Catholic and Orthodox, Jews were allowed to practice it though... strange.
You just blew my mind with this info! THANK YOU, THANK YOU, THANK YOU, THANK YOU!!!! I can't wait to start working on this! You are a blessing to EVERY person who has watched your videos!
What happens to the expenses in month 7, when all the income went in to pay off the loan? Her math doesn’t add up. In her example of 1100 per month of extra income compared to expenses it would take over 9 moths to pay off a 10k loan at 0% interest. Not 6 months to pay it off. Just put the extra 1100 per month to the mortgage and don’t pay interest on another line of credit.
Even if it were only every 10 months you would still save a ton of money ! Might take 10 years instead of 7 but after year 10 or 11 you have $ 967 more free money and 20 years of no notes ! Thats $2,000 a month to bank ! In 15 months you could buy a new car for cash ! Or you could buy a rental house for passive income !
@@chavitacanta008 just pay your $1,100 cashflow directly to the mortgage each month and skip the over complicated infinite banking BS. You will come out ahead I promise.
I don't even have a home / mortgage, but I felt like I was just lectured by a caring aunt who truly wanted the best for my future. I feel as if my brain just had a firmware update. You're doing a service to mankind. God bless you. Love from India.
The last part of the equation 4969-4969 forgets you have 4100 in expenses with only 5200 in income - 4969 - 4100 = -3869. Approximately every 6 months, you get a 3rd paycheck, which you’ll be 2600. 2600-3869=-1269 that you are still short. From what I can tell, just adding the 1100 to the principle directly is a faster method to paying off along with the 2600 extra pay check approximately every 6 months.
Exactly my thought. Directly applying $1k per month is nearly equivalent to 10 months of principal without all the hoop jumping. I am currently adding 4 months extra to my principal with zero "lines of credit."
i also noticed this, because she summed 6 months of income and only 5 months of expenses it would still have a balance of around 3900 on the line of credit at the end of the sixth month when you add the sixth months expenses. would be cheaper to directly contribute the 1100 cash flow to the principle rather than paying the interest on the line of credit
I just figured out that my mom and dad paid $180000.00 for their Veterans loan home that they bought in the exact year of 1971 at a total cost of $18000.00 dollars their monthly payments were $500.00 a month for 30 years, only $50.00 a month went towards the house!!! What a F-ing rip-off 😮
Am I missing something? How is the family in the example to pay their expenses on month 6 when they put $4969.00 towards the LOC from their $5200.00 monthly income and pay off the LOC? Wouldn't that leave $3869 in unpaid expenses for month 6?
You're not, this is the error in her math. If you consider the missing unpaid expenses it actually takes ~88 months to pay off the mortgage using this method. This is more than it would take if you just applied the $1100 excess directly to the mortgage every month (~86 months). This is what happens when you combine shaky math with trying to pay a lower interest loan with a higher interest loan.
@@derekmcdanell6972the $1100 excess? You mean all of their extra disposable cash? Why would they just give all that to a mortgage payment? They have to live and life happens vacations birthdays etc. Hello?
Thanks I was looking for the error. I knew something was up because their monthly cash flow is only $1100. In 6 months that's $6600. So unless an line of credit is literally a free money glitch something was wrong in her math to somehow pay off $10k with interest in that time.
great video. i didn't know lines of credit even existed until i started working as an accountant and found out that my company had a $10 million line of credit that it was using constantly
Additional note, if you took that additional $1,100 a month and made an additional payment to your mortgage it will all go towards principal and not interest. You could pay this loan off in less than 8 years and a total interest paid would only be $39,631.82, which is only $2,828 more than her method and you don't have to do all the work of getting another loan.
Also, her math is wrong at the very end of her calendar, because she didn't account for the expenses that still needed to be paid. So really, it would take more like 10 months to pay off the line of credit. Given that fact, I think the costs are the same, perhaps better on the mortgage.
You allow your governors to make the rules in the banks favours yeah, your governor is working for who you are the bank well personally I believe he’s working for the Manx because the rules of shit that way rules to rip you off
No... It's not. If you think using higher interest rate debt to fix your debt works... I have some snake oil to sell you. What would really save money is using your income to pay off the lower interest rate mortgage directly instead of using a high interest rate loan to pay off the mortgage. The only reason a mortgage has a "higher" interest rate is because it is the (rate)*(the number of years). Taking out more higher interest rate debt just means that you get to pay more debt on the way to paying off the house! Just save up and pay off the mortgage!
@bubbleboy821 the idea is the mortgage is not the actual lower interest rate as she states. 7.75 interest calculated over 135k loan is greater than a 14% interest on a 10k loan. The lower number doesn't mean less interest when it's calculated over the amount owed. Additionally, at 1100/month it would take 10month to save 10k when the HELOC can allow the 10k to be paid up front, paid off within 7 months as she stated, allowing the 10k HELOC to be used again for a 2nd time in the amount of time it would take to save 10k once saving the 1100/month income. How she's adding/subtracting the HELOC figures is throwing me off a bit but I can see the value in the strategy
On month 6, when the LOC has 4,949 and the income going in is over 4,949 the balance goes to zero... but you still have the 4100 monthly expenses that have to get paid. You're disappearing about 5k in what they owe over 6 months. You can't pay of $10k in six months with only $1,100 a month. You could do this over a whole year but not every 6 months.
How is nobody else seeing this? How is she ignoring it? Even with their cash flow, that leaves $3849 . Even if done every 7 months as she says, month 7 would reduce that to $2749, plus interest. That’s some $22,000 in principal alone remaining at the end of the 4.5 years But also How can you even draw the $10k LoC down again if there is still $2749 outstanding??
Thank you. I watched the video and no matter what voodoo i perform, I cannot get $1,100/month to pay off a $10,000 loan in six months. The $10,000 is either going to the mortgage, or it is going to this loan. It cannot be going to both.
“Roll down the window and throw out the money because at least you will be helping someone and not the bank” 😅 so true.
AND… she “rolled” down the window like they would roll down when i was a kid which makes her even more genuine!
@@MJ-fj9yv and how would you refer to unrolling the window? At least she has good advice.
@@llamb7518 I would do it exactly how she did. I was giving her a compliment, she is a genuine person with excellent advice.
Hopefully I'm walking at that time
Hence, the phrase, Banksters.
This is the kind of stuff we should be learning BEFORE we get into the real world.
They won’t allow this to be taught. Why? They want workers.
I totally agree. Public education only taught you to get a job and consume debt.
You have go to college and get in debt in order to even learn about this type of stuff.
@@cherylbroadenax1006and they want our money first plus interest
I briefly taught personal finance to high schoolers, they didn't want to hear it. the second it involved anything other than a get rich quick concept, they were out. TikTok brain is real.
we lack financial literacy in this country.
I learned about this in college when calculating bonds and figured to pay 20 percent down for a home minimum
Locked up 13 years and capable of basic math at age 5. 🥲 I wonder why.
Not necessarily true. When merely 50 years people knew what a woman is and now we don't... You know they're not telling you something.
Interest this and interest that. We ventured too far in the land of make believe and now they're erasing fundamentals.
What difference is it gonna make if all they talk about is A.I. and synthetic lifestyles when it'll be your brain in a pickle jar while they syphon all of your biometrics while you think your simulated world seems real but you're still struggling?
It's pretty obvious what we need to do but hard work and team work seems to sound like cumbaya to alot of people who just want passive income and the convenience of Door Dash.
thats by design. the people at the top dont want the peasants to know how to become rich.
Should be taught in high school
My wife and i paid off our house and we are debt free in our thirties. We now sold our home and we are moving to paraguay. Financial freedom means true freedom.
Is this how you managed to do that?
@gorraksmashskull What is "this" that you referred to?
@@gorraksmashskull This being the video? We paid cash for our vehicles. We were smart about school. I went to trade school and got paid to go to school. My wife went to nursing school and she had her loan forgiven because we lived and worked in a rural area of Canada. We cook our meals ourselves. We pay off our credit cards every month. We buy used furniture, used clothes, used tools, used everything. We do not take extravagant vacations... If any vacations. We saved and saved and anytime we had $10-20,000 saved then we would put it on our house. No one understands and they still don't understand us. Whatever. We are making the most of our life now.
@@PartyofSixPYthe lesson of the video i guess
Yes we bought our house and paid it off in 10 years. We bought our vehicles used and paid cash. We buy used clothes and furniture and tools. We do not take vacations. Get out of debt and invest your money and let it work for you.
She reminds me of a teacher that really cared and made sure i was on track.
Same we need more people like her teaching period.
Mortgage literally means payment till death , wished I did this over 2 decades ago kissed over 50,000 geez to interest sucker payments....✌️🙏☝️🤔😎
I read this as made sure I was on crack 😭
@@rachel3682Crack might be a better investment for happiness than a mortgage 🤣
All our teachers told us to invest 500 a month into s&p 500
ANY video that looks like it's made in the 90s...when it's really made like a month ago ...is ALWAYS a phenomenal watch. The content is in the INFO and not the theatrics!
😂even the hair style clothes
😂😂👍🏾👍🏾
😂😂😂
She came to win, even though she didn't come to play games.
Democrat would claim it's a conspiracy
Christy, I must say just how effective this has been for me. I was quite skeptical at first and I felt like I had made a huge mistake when I went ahead and put $10,000 from my LOC on my mortgage last December. But I kept sticking with the principles you have laid out in this video and I have found over the last 12 months that I have paid just about $30,000 off my mortgage this year in conjunction with my regular monthly payments. I have not felt more poor, and I have only paid a little over $400 in interest on the LOC this calendar year. I am blown away at the fact that I will most likely be mortgage free in the next 3 years instead of about 15. I will be about 28 years old by then. You have changed the way I think about money and have given me a lot of hope over my finances. I am forever grateful to you and I wish you the best and keep up the good work!
You just gave this for free, thank you ma’am. God bless you abundantly 🙏🏽
It’s the same exact thing with student debt. People pay back what they borrow and still owe thousands of dollars years after school because the vast majority of their money had gone toward interest.
This is predatory.
Yea it’s called Usury which is forbidden in the Bible
@@alpaphoenix3252 Republicans are the new pharisees
🙄It's not predatory. It's business.
@@agisler87🤡
@@agisler87 There is such a thing as predatory business practices genius
I bought raw land (4 acres)...paid it off as fast as I possibly could... and built my home with my own two hands.. paid cash as I could afford it...At 45 years old II am living completely debt free .... All I did was work hard and live within my means...It is absolutely possible for most people to do the same if they are just willing to put in the effort... GREED and ignorance is destroying our society.
I’ll need your help here because that’s exactly what I’m on right now. Bought a land and now I’m thinking on how to build on it.
House prices are crazy here, I've been thinking it's probably cheaper to buy land and just try building my own home....
@@yeoldegrayCat Make sure to research the costs in your area. Getting power to a parcel can be really expensive. Water and Sewer hookups are not cheap. If you're going with a well, make sure to find out how deep you need to go for water in the area and what the quality is (do you need extra filtration) If you're going with septic, make sure the soil can perk, or an engineered septic can get pricey. Know how strict the local jurisdiction is with road building, environmental regulations, etc. I don't want to discourage you, but it will require more work than looking at properties with a realtor.
@@Zt3v3 My property already had well share and septic installed... my power is completely off grid solar with battery bank and generator back up..(No Power company involved)...I will say that I got extremely lucky with finding my land as well as the person who I purchased it from.. (Owner carried the contract)... The building codes here were pretty lax but have gotten a bit stricter in the last decade or so. Timing is everything in my case.
Dude your awesome
150k home. The real theft is that nobody can find a place at that price.
I have one, but I basically live in rural Wisconsin, one of the lowest cost of living areas in the country. Retirees from large cities are flocking here in droves. They are building giant condo buildings just for them!
You can thank housing laws prohibiting people of making new houses...
@@Vic_Trip I plumb new houses every day.
@@robertpulliam4152 in certain regions, there are no "new house" restrictions. But the majority of big towns prohibit it. Not to mention creating new houses in the sense of using land outside of the zoning permitted by the gov. This makes it so the real-state has a monopoly on the house market, leaving these prices to go absurdly high due to the millionaires and hedge-funds buying them for profit...
I did but I live in West Virginia
Not only did I feel like I walked in a high-school classroom when I clicked on the video, but it made me wish this what our teachers taught us back then. THIS is education.
Another way people get scammed are by vehicles. I simply moved right next to where i work, got rid of my car and now i save 1000 a month and thats not including repairs. Its insane, i also lose weight
Not everybody has that type of privilege/luxury, we're I'm stuck there is no work that will pay enough to cover my bills, i have to travel to work and no I do not make enough to move closer to my job. And no, I'm not going to be able to find a higher paying job in my area.
@@albinoyak2755 dude I lived in concepcion texas which is a town of 35 people corpus christi is the nearest city, which is 1 and half hr away I raised my siblings while saving for 5 years, to get out, if i can do it you can too
@@albinoyak2755 I don't think you know what the word privelege/ luxury means. Get a second job, I lived in my car for almost two years just to relocate. There are people who are in worse positions than you that find a way.
What kind of vehicle are you driving that costs 1000 a month?
@@irrecconI suspect it's total cost of car ownership. There's the car payment, auto insurance, initial sales tax, inspections, tag/title cost, monthly fuel costs, maintenance, and tolls for some folks. When you add it all up, you realize that having a car costs you a lot.
It's not at all practical for me not to own one though. But, some people can sacrifice for a lifestyle that allows them to be without one. I wouldn't assume that it's "privilege" like a previous commenter said. For many that do it, it is only possible through determination and years of hard work and personal sacrifice.
I'm 40 yo. Didn't finish high school. I've needed someone to explain this to me for decades. Thank you for the spark of hope.
stranger, I hope you get everything you financially deserved after living on this planet for forty years. 🙏
They don’t teach you this in high school either 😅
Appreciate the concept but I'd rather just pay the eleven hundred dollars extra each month and not pay any interest at all to the bank 46 months at a time. In return, I would pay off my house 284 months.Have a great day , super simple
even if you did finish high school, sxit would be the same. Schools teach you nothing.
Bro 😭 felt that man
This is something that no one in a bank will tell you. I've long said to people around me that mortgages are a scam and you will pay for your house 3 times. Not a single person believes me they are being robbed blind.
AND AFTER YEARS OF PAYMENT, PEOPLE ACTUALLY THINK THEY OWN THEIR HOME!😂 THINK AGAIN, STOP PAYING YEARLY TAXES AND THE HOME GOES ON THE CHOPPING BLOCK 😊.......SO , YOU REALLY ARE FOREVER RENTING YOUR OWN PROPERTY!!!! MEANING, SOMEONE ELSE CAN POSSIBLY GRAB IT , IF YOU S.L.I.P. ON THY PAYMENT HAHAHA 😆 HAHAHA, WELCOME TO CAPITALIZISM.
@@lindar6326 valid, but our monthly expenses would be a fraction of what they are now by following this.
People don't realise that compound interest is a thing, and as little as 2-5% can grow exponentially just after 5 years into esentially doubling or tripling the amount you agreed to pay on initially.
@@shroomer3867So what can we do? I knew over 16 years I haven't even paid off anything because of interest only mortgage 🥺
A lot of people know they are getting ripped off, but they are ignorant of ways to get around it, until now.
I had to watch this twice to make sure I had understood everything right. This is phenomenal information. You have given me hope, thank you!
Me too, has to watch it twice to get the grip of it. The first part where the $1,100 income surplus was used to deal with the $10k credit line payment got me confused between what she was saying vs the numbers she was showing at the very begining of this part.
@@petervallejo5603what’s the term or name for this trick? I still don’t understand really so ima go watch other videos of ppl explaining it in different ways and come back and watch this
As a former banker, I used to make a commission off selling credit cards and loans. That should tell you all you need to know
so are you saying she's also not entirely correct here?
Would you say that her loan reduction methods work though by reducing interest? Her math looks sound.
@@z1lla4 no I would say this is sound advice if you plan it out and actually pay everything off
@@barryfondant6032 it looks sound to me as well. When I sold home loans, interest rates were much lower. But now that they're at comical levels of 7-8%, you are literally paying more in interest than you are for the home. Not to mention a home purchased 20 years ago for 125k is now 350k+, so many new homeowners are looking at the prospect of paying a half million dollars or more in interest to purchase a home. That's simply not feasible in my opinion, unfortunately we are programmed to just do that and don't ask questions.
I feel like that line of credit loan of $10,000 won't be paid off after 6 months, there's some part at the low right side she's left out. It would actually take more months.
We used this same concept years ago after I took a mortgage brokers course and realized how mortgages were calculated. Paid off our mortgage in less than 7 years. I tried to explain it to people but no one believed me. Like you said, people need the ears to hear, bless you
Did you use a LoC like she mentioned in the video?
@ahavyahyisrael9938 yes, we used a 10K one
Can you explain the LOC better?
For example is it getting a $10k personal loan from the bank?
Does $10k get put into my account and then I put my income into the loan? Wouldn’t that mean I would be paying off the personal loan?
I am open ears, thank you
@@brightboakye3996 The way I see it is that you’d be using your loan as your personal banking. So yes, you’d get the 10k and put it towards the mortgage, then your income and expenses would need to be calculated against that original 10k amount. Your payments would essentially be whatever your cash flow amount is (In this example, it’s $1,100). This would require you to be dedicated to your goal of paying off that loan and not buying extra things for yourself while paying off the loan.
@@brightboakye3996the line of credit is an agreement by the bank to loan you up to a certain amount of money.
It's been traditionally used by businesses (properly) to deal with the variation of income and the expenses they need to pay. A business doesn't necessarily have all the cash up front to pay all their expenses, but they do have ongoing income and value tied up in business assets.
So, the bank agrees to the line of credit, and the business is going to use it to take care of its day to day operations and smooth out the "hills and valleys" in its income.
So they use it just as she's described: they dip into the line of credit, using it to pay things as they come up, and using their income to pay down the line of credit (so as to not carry a balance like most people do on a credit card).
So it is a loan, but it's not the bank giving you all the money up front, but they've agreed that when you need it, they're prepared to front you the cash. And instead of a loan, you decide how you're going to employ it.
The idea of "depositing" your income into the line of credit is that, instead of just sitting in a bank account, that money is actively reducing the credit you're using (credit that is costing you money) while also increasing your buying power (since you're reducing your utilization of it with every deposit you make, you have more freed up credit).
we are not being taxed we are being plundered .
We stop them.
We're being robbed of practically half out wages from over taxations ,rich enjoying tax shelters by paying themselves minimum wage , hiding profits in business investments Trumps words of a rigged system for elites are pure facts ... ✌️🙏☝️😎💪
Just become a billionaire or a corporation, then you won't have to pay any taxes. Cheat code unlocked.
Why is 14% interest on 10k 117$?
Yep, it's the natural consequence of deifying the Banksters and doing what they say...
Not only do we need to know this, but this also has to change in our country! America needs to change.
This woman just saved anyone who watched this video A LOT of money. God bless her.
This may be a stupid thing but im young and new to building credit. Recently my credit score just dropped from 750 to 619 but i am able to use *Pecuniary backdoors* websites to get to an 800 I was stuck at 750 for a while and I’ve been trying to get to 800. I know in this video you think these methods work for ppl with below 400 but i wanted to make sure someone with over 200 could use these websites.
And time, I mean talk about a 5 year plan, lol. She's something else❤. I hope she knows that there's currently about 3.3 acres per person(newborns included) in these United States, and speaking of, cheap (especially agriculturally zoned) land is one of the only investments I consider a necessity for all young children.
@@williampatrickfurey Wow I've never heard that statistic before. Great time to capitalize.
@@KoolAssKouple yeah I looked into how much of the United States is unused and then did the math. Another helpful thing is knowing that what's called "uninhabitable" right now is not actually uninhabitable, nor will it be the exact same in the future. Especially after taking a business trip, which you can "write off", to said land and planting an array of fruitful commodities for their futures. (A plain and easy example is cherry as it's not just fruit but also wood if need be plus, with poisonous leaves, animals don't seem to eat them.) It's not what I have planned exactly, but let me know if you want video proof; I recall seeing something from a "fruit explorer" which I can probably source to show you his friend's thousands of trees in the desert with literally no maintenance according to his own words.
135,000 loan at an extra 1,100 a month still takes X-months = 135,000/1,100 free cash per month. this is X=122.72 .months. So 12 months to a year.
So that is over 10 years of scrounging to get the loan paid off. Yes interest savings can do it in 7 years. But it is not realistic. People have to enjoy life. Or they buy a bigger home.
"If the American people ever allow private banks to control the issue of their currency, first by inflation, then by deflation, the banks and corporations that will grow up around them will deprive the people of all property until their children wake up homeless." - Thomas Jefferson
Happening as we speak! Thanks for sharing this quote.
Damn. It's as if a certain someone from last century fought the banking system and lost. He warned the world and they didn't listen.
@@RoxyCherryRozy Exactly 👍🏻
To fix this I propose a 100% reserve system for on-demand deposits, the abolition of the FED, abolition of currency privileges via exchange rate controls & legal tender's contractual exemptions to competing currencies (gresham's law), the abolition of currency discriminatory taxation, a complete deregulation of the financial sector, & a strict enforcement of private financial contractual arrangements. This would eliminate all fiduciary media & inflationary credit expansion.
@@austinbyrd4164 Totally agree 👍🏻.
It's Called the American Dream Because You Have To Be Asleep to Believe It" - George Carlin.
Imagine if George had taken ten minutes of his routine to explain THIS to his audiences?
Revolution.
It’s a giant club and you ain’t in it
@@adambarnhart2188
When kids wouldn't let me and my friends in their fort we built our own.
That was more fun.
But compared to what? Latin America, the Caribbean, or Africa? I'd rather be poor in America than in Cuba or Guatemala.
@@lupea8079 That's a good point 👍🏻. America's are not happy about all the inflation and devaluing of our currency, its theft and corruption at the highest levels.
Hi from Australia , Christy
I just want to add my voice to the enthusiastic support that you are receiving and which you so deserve.
I wish that I had known all this twenty years ago, but better late than never! You are giving people so much here, and I do sincerely hope that you are being rewarded in return.
Best wishes.
Great info. She gave all the tea and didn't leave a drop in the cup. She didn't even try to sell us a free book. Thank you , you are the best.
A real American
I love that . " Sell us a free book"
honestly i want her to sell a book. this info is gold and femme labor is not free!
❤️🎯🍵
@@crialunar Don't you mean women's labor? Or are you French?
I remember every year my dad looking at the yearly statement and noting how little actually came off the principal. I decided early in my life i would not become an indentured servant.
That genuinely makes me sad😢😢
Indentured
@@babyblutube-s5j dumbass is spelled with 2 ss's.
I mean this isn't that bad
@@babyblutube-s5j r u happy?
This is the financial education we didn't get in schools. Thank you for bringing it forward and sharing what you know!
It's because schools aren't designed to free the people but to dupe the people into being suckers
We're not supposed to be taught EVERYTHING in school. There'd be far too much to teach. People should understand the math behind things more than the concept, or being able to read tricky contracts.. Our parents and other adults should be able to teach us things like this. Unfortunately, most of them never figure out the scam, either.
8:44 But does the final LOC payment at 6 months allow for that month's $4100 expenses? Wouldn't you need to stretch the repayment of the Line of Credit out to 10 or 12 months to pay it down with just your monthly Cash Flow of $1100?
What am I missing here?
your correct. I'll paste my comment here because i went down a rabbit hole with this: I mean...... This is just paying an extra $1,100 on your mortgage each month with extra steps and more interest is it not? You would get a better result by simply paying $1,100 towards your principal each month directly. Your calculations don't factor in having to pay expenses again on the 6th month. If you keep putting your expenses on the line of credit it would take 10 months to pay it off not 6. Think about it, how do you pay off 10k debt in 6 months with only $1,100 extra every month, that doesn't math. I ran the numbers right now and doing this exactly as you say your line of credit would balloon to over 40k balance by the time you paid the house off, however if you do this same strategy apply 10k on LOC every 9-10 months, the LOC will actually stay stable. If you compare dong this vs just applying the $1,100 cashflow directly to the mortgage principal you come out ahead by 2 months sooner mortgage payoff and $5k less interest paid overall by the direct to principal method and that's way simpler.
I was so confused from this, but after going through it again and again, I found multiple errors in this calculation.
1) You need extra 1100 monthly cashflow, which has nowhere to come from
2) You can't pay down the 10k credit line in 6 months - You need 10 months, as there still needs to be the 4100 for monthly expenses.
3) as far as I found on the internet, not all banks (not even in America and especially not in Europe) offer the option to put down a bigger payment for the mortgage with no extra cost, which would further complicate this whole thing
4) I couldn't find any offers on lines of credit which would allow anyone to go interest free for 6 (or actually 10) months.
Fot those reasons I call this idea really misleading, maybe even harmful. I don't understand, how there are so many people praising this method - are all of those just bots or something? Am I missing something here?
@@filipsochor8277 she didn’t assume that the loc would be free of interest in the video.
The extra payment made toward the mortgage is going directly to the principal after the monthly payment is made. You’re saying banks don’t offer the option to pay off principal without a fee?
@@Adamjv123
If I understand You correctly, you are saying 2 different things:
1) she didn't assume the LOC to be free of interest
2) you ask me about the banks.
1) yes, you are right, I missed it in the calculation when I was watching the video while writing my first comment.
2) yes, as far as I could find (and again, I am talking from Europe, so I may be wrong) there are banks that don't allow that. If you want to put down a bigger payment than regular, there will be extra fees. I guess not all banks in Amerika are like that, but definitely what I found seemed to be like that.
@@DavisCookRealtorexactly ) so funny how many people didn’t realize what this was about )
From the very first payment I made on my mortgage, I paid an extra $500 on the principal. Now, 3 years into it I'm paying an extra $1,500 a month and I can't wait to get out of it. This is great information.
But brother where do I get the extra 500
@@whitketchumgotta find a way bro. get another part time job donate plasma etc
@@whitketchum make more money or cut expenses. Do you have a car payment? Do you eat out or order food? Do you smoke or drink? I cut $1500 a month out of my budget by cooking at home, packing my lunch and deleting my amazon account.
usury at its finest! people should thank the khazar fake juze for that.
I’m coming into a large sum of money and I’m thinking of doing something similar. Thought of just refinancing to get a better rate but I think it may be better to just make a lump sum payment or do what you’re doing.
This is ridiculous and sickening. 😢 I plan to own a home in a few years, once I build up my credit. People truly do perish because of knowledge. Thank you for the knowledge!
They perish for a lack of knowledge .
You do not need credit to buy a home.
Credit is why we're suffering. It's the lie we're led to believe is there to help us.
This is bad advice, isn't it? Please correct me if I am wrong. run the numbers. Essentially you are making $5500 in early payments to your total owed money after 5 months. Then you are making a lump sum payment of nearly all your income for month 6. This is not wise. You should have made your early payments to your mortgage of $5500. Yes, open your HELOC so you can have available money in case of a difficult month. Basically, on the 10K that was not in your mortgage for 6 months, you saved about 350 in interest. But you paid $469. Not sound advice here.
Sorry. I am interested to see if you delete my comment!
@@cherylaguilar5421 I don't think you understand. In the scenario, They already made an 'early' payment in the form of $15,000 down payment. The LOC isn't used for anything extra. (That's where credit fails you, and profits them most). The 10k lump every 7 months accelerates the reduction of of the mortgage's capital debt. Paying off the LOC $1100 a month is less effective than using the full monthly paycheck ($6k was it?) as is lowers the average for the LOC's interest charge. It's still a net reduction of $1.1k/mo off the LOC, with the appearance of an average payment of $1428.57/mo towards the mortgage, which is still a net positive for them. HOWEVER, each 10k slide of the amortization table saves a mountain of overall interest, so more of the capital is paid off faster, with less interest being incurred along the way.
I love mature people on TH-cam making genuinely smart and helpful videos on TH-cam without clutter
If mature you mean tricking people into paying more in interest when they could just take the extra 1,100 every month and put it against the mortgage and actually pay it off faster, then sure.
Under what she's telling people to do, people are paying $9,000 more in interest than if they were to just take the $1,100 extra every month and make an additional principal payment. No line of credit needed.
@@dakattack8900what is this called?
@@dakattack8900 geez bro chill. You ever wanted a snowcone or had a brake line go out? Better to have and not need than to need and not have.
Also, I may have initially misinterpreted what you typed there. I c u now :) carry on then!
Good 💯 information
@@dakattack8900nothing worse than being house rich and money poor … but sure, put ALL the disposable income into the principal. Or ya know, leverage it like she’s suggesting in the video
Do whatever you can to not buy in the system. I'm becoming a merchant marine and will build my wealth for the next 4 years. I'm not paying rent. I'll have the best health care on the planet and I'll be doing something I love. I'll be buying land and building a tiny home (which I'll build myself). Don't throw in the towel! Believe in yourself! Find channels like this that are positive and packed with information that helps you!
Love your channel! Hugs!
Best health care how?
I don’t remember taking financing in high schools. I feel like that should’ve been the most important subject in high school
Just proves that the American education system is a scam and shit. Homeschool is the way to go.
because it was a governement run school system. They want you where they have you..............uninformed.
The teachers can't manage money either.
They taught economics at the most…but schools assumed that parents will teach finances to their kids lol or the education system doesn’t want us to be really educated
The thing is the school system is invented by THEM. They don't WANT you to know this stuff.
I had $3500 stolen from me from Key bank. The bank would not refund it. Do not bank with KEY. If i can stop one person from banking with them id feel better
They must not be fdic insured? 😮😢
@@timekabolden5309 No they are just like any bank. They did their own investigation and made it sound like I was involved somehow and said they wouldn't refund the money.
Don't feel bad bro. I have 3.8 million seized on me because Bitchen was hacked like a couple months ago or so. Now i can't withdraw any money. Can't tell me a time limit IF I'll ever even be able to get those funds back.
@@SuaveHousexxWho bitcoin ?
You can fill out a police report against them. That usually turns it around...
I learned this in my early 20s when I was broke. I retired at age 45 debt free and purchased commercial real estate. My net worth increases $100K every year after a very comfortable cost of living buget. Not bad for a 9th grade drop.
@@RegandNiq Step 1 is to start a business, any business. Mow lawns, sell shirts. Step 2 grow the business slow and steady with employees making you money. Grow too fast is problems, too slow is problems. Understand you don't have to be a plumber to own a plumbing business. It helps but not required.
@@greenmoxythen what? You make the money and buy random houses?
@@viperrr6886 Houses? Never! Commercial is best. A business will rent the space to make income so is more likely to pay rent on time every time. House renters late pay, no pay, fix this, problems. Commercial 10yr return vs residential 15yr return.
@@greenmoxyokay nice
@@greenmoxywhat kind of properties do you buy now that working from home and e-commerce is growing? Meaning, do you buy office spaces? Or laundry mats? If that makes sense. I’m learning and genuinely curious. So if it sounds like I don’t know what I’m talking about that’s because I don’t hahah
Thanks!
It’s crazy how many financial traps there are out there to make us stuck and pay the government/banks every penny we get,I appreciate this woman for being educated and kind enough to share this information
Who are the biggest banking families?
Why are these names always tied to the global elite being corrupt and draining humanity for over 150 years?
People need to stop calling people crazy and do some research, we USA is being ran as a corporation
This is the single most valuable TH-cam video I’ve ever watched.
💯
Yeeeees 😮❤
🎉
More valuable than your high school diploma
Has ANYONE tried it yet? Let us know PLEASE!. gonna show the wife rn.
In 1983, i had a class that covered many aspects of business. For instance, the brilliant teacher explained that, when used car shopping, palm a magnet in your hand and run it along the body lines, fenders and other 'impact prone' parts of the car, if there was an area with no magnetic pull, there was body filler (aka BonDough). Of course, cars were still made of steel back then.
He also taught us about credit and loans. The numbers you talk about here (95% of payments during the first year being all interest) applies to ANY loan or credit, not only mortgages!
Awe HECK! I’ve been doing this thing all wrong! I overstand now!!! Thank you Ms. Vann!!! You’re an ANGEL!
I just called my bank !!! 🎉🎉🎉
I'm blown away. I have to watch this several more times to completely understand this. I sure wish I could sit down with this lady so she could walk me through this.
SAME! lol 🙏🏽
So if you don’t understand what are you blown away by
She just did, didn’t she?
Can you explain how the LOC is paid in 6 months?
Honestly if your interest rate is below 3-4 % what she saying would be wrong
Mic drop!!!🔥🎤 👋🏾 Doing the lords good work! God protect this woman 🙏🏾✨
I’m completely blown away by this info!
😂😂😂 Amen!
Knowledge is Power!
Many times, it's what you don't know that can make or break your finances.😊🎉
Any help for renters who would rather do so?
This should be a required class for every student to graduate!
They wouldn't want that, everyone up top benefits from our lack of knowledge 😠
Classes in compound interest by itself should have been a requirement to graduate from high school.
That's what a lot of the student loans crap is about...a lot of people never understood what compound interest was until after they got that far in college. By then, it was too late - thousands in debt.
@@gcanaday1 Definitely. A course in finances would be far more useful than most of the classes they teach in high school.
All wars are bankers wars!
True they need to teach personal/business management skills in high school as a requirement not as an elective. If it still is one.
Also kinda feel allowing this kind of predatory business behavior is wrong.
Thank you so much for sharing!! May God continue to bless you 🙏🏾
I think that most people are actually both poor and being robbed at the same time to be more accurate
Very true! The system is set-up favoring the rich & taking from the poor.
That’s how I assume blind government monopolization will always end up working out.
Giving idiots an easy way out of the labor market and authoritarian perks is not helpful when creating a functionally efficient population.
to be rich is to require little. to be poor is to desire many things.
some of the richest people on earth arent wealthy. and nearly all the wealthy are extremely poor
I received a small settlement years ago, 97K , I bought our home. Every idiot was telling me to buy a Jag or a Porsche. I bought our home still living in it after over 30 years, and will die in it. Our cars 2 of them are over 10 years old but paid for. Here where we live corporations have been buying every house they can,turning them into rentals the average rent is between 2K & 2.5 K they are turning this country into a nation of renters. Now they want to charge people for every mile we drive, that is a thing! nickle, and diming everyone into servitude financial slavery. I feel sorry for the young folk I truly do.
Where do you live at? Corporations haven’t bought into my city, San Diego, in a way that I have noticed but I know they have bought 40% since COVID.
@@MatthewCashew3 Blackstone LLC has been buying homes all over, there are others like them. The block where I live has twenty houses ten on each side. At one point there were all family owned today only six remain, the other fourteen are rentals. Warren Buffet, Robert Reich, Jamie Dimon are warning of an impending housing crisis. The American dream of home ownership is less, and less attainable today, than any other time in the past.
I agree Grady. I'm an independent college student, so I will be and have been navigating this insane financial world for a minute now. The best thing we can do is educate ourselves on how it is all changing. And shoot, if I have to live out of a vehicle, or sacrifice other "luxuries" in order to remain financially free in the end, I'm going to do it.
The game is always changing, the smart will adapt, and the others will unknowingly contribute to the massive wealth disparity in this country. Financial literacy needs to be taught more in this country. God bless.
97k being a small settlement is CRAAAAAZY
A JAAAAAAAAGGGG
Protect this woman at all costs!!!
Hahahahaha😂😂😂
That's gonna be difficult, considering her nose shows up 6 days ahead of time.
From what?
At what cost specifically?
LOL this woman is misleading people.
Lady YOU ARE AWESOME!! Thanks for showing us a NEW WAY! 🏰I can have a kingdom instead of just one castle with your method. 🗝️
@Jasa77 YES!! Thanks for watching!
the math is flawed
@@systematic101 How so? Not that I agree with her. Just came upon her videos.
@@deirdremorris9234 1) she forgot to account for living expenses in her last month with the line of credit. The $5200 can cover the LOC balance but they would only have a few hundred left and still need to pay expenses. Which means they would need to take out almost $4k from the line of credit.
2) She's effectively putting the cashflow amount of $1100 on the principal of the mortgage but instead of putting it directly on the mortgage she's taking out new debt at a higher interest to then put the cashflow on the mortgage while paying interest on the cashflow and living expenses.
I ran a comparison of using the LOC vs just putting the cashflow on the mortgage. Putting the cashflow on the mortgage pays off the mortgage in 85 months with a total interest of $40k. Using the LOC $3.1k is still owed on the mortgage and $6.6k on the LOC after paying a total interest of just over $45k over the 85 months.
I can't think of any scenario where taking out debt with a higher interest rate to pay off a lower interest rate debt makes any sense.
@@deirdremorris9234 I think my rely got deleted. There's comment somewhere else on the video where I explain the flaw.
This woman is a saint educating and showing people all of this for free. Blessings to her and her family. Hope she lives a long and fruitful life.🙌❤️
Idk but something is off here. I went on my banks app, then a separate app to do tge math for my house. I owe less than 135 and have been placing 10k every yr on my principal from taxes also my IR is below 4. Never more than 24mths taking off every yr. She said 7yrs worth of payments smh. She's full of shit!
@romellobelo5443 So, what she's telling us is a crock of $h!t? Based on your mortgage and calculations, your payments and interest rates yield the same results or better without doing a line of credit as she described?
@@romellobelo5443@seaor2k122 I already debunked most of this in a post. Yes, it is entirely incorrect. You can't take out a higher interest loan that compounds just like a house and expect to be better off in the end. Putting down payments on a house is a bad idea in general, but its even worse if you do it with a higher interest loan. This is an example of the worst possible thing you could do.
@@seaor2k122 Her method is so wrong, its hard to know where to start picking it apart. Yes, this method will only work to make you more poor, don't use it.
@@seaor2k122 The math breaks down at 8:20 when she says, "*gasp* month 6, it's paid off!" Sure, except you just put $4969 of your $5200 paycheck into paying off last month's expenses, and you have $231 to pay this coming month's expenses of $4100. Where is that other $3900 going to come from? It either has to come from other money or from the line of credit. The way she did the math is it comes from other money, which means she's actually factoring in these people paying an extra $3900 every 7 months.
The hint that something is obviously wrong is that the balance on the line of credit is only dropping by about $1000/month, which means it will actually take around 10 months to fully pay it off without this magic $3900 coming out of nowhere. That throws off the rest of her calculations, too, meaning the actual savings is less than what she said.
Much simpler: just put that extra $1100 toward the mortgage every month, and you'll save $172,275 and pay it off in 7 years, 2 months. No handwaving an extra $3900 every 7 months from out of thin air, no convoluted schemes.
If anyone would study their mortgage bill and amortization schedule you could see this for yourself. Once I did I talked to my husband and told him we are going to end up paying $350,000 for our $100,000 house if we don’t pay this off. Took us about 2.5 years, but we have been mortgage free for 10 months.
Congratulations❤❤❤❤
Congrats ❤
👏 Winners mentality. People like to indulge in spending, it's a form of masochism.
@@billyin4c514 are you sure that's the right word?
@@datahigh absolutely, doing things to hurt yourself is masochism.
This literally just changed my outlook on buying a house in the next few years. Thank you so much for the information.
Thanks! Wow !!! I have 12 homes and paid them off the old fashion way of extra principal leaving me short on cash. Out of all the courses and finance lessons' I've taken this is the best for a small landlord like me.
This looks like someone who's been working in banks and got sick of people getting ROBBED
Look into it deeper. Think it through.
You will see that she magically made the month 6 expenses disappear with no justification. Then you will realize that her argument is full of shit lol
We the people are robbed by everyone.
@@kyles234 why yes, taxation is theft by a big gang holding us accountable of the world we live in while saying ''this is for our best'' but not letting us have any real impact on it.
You left out the fact that the bank had no " consideration ' in a mortgage and your signature was collateralized as always to create fiction numbers out of thin air and the bank presidents know it just like the fed never printing interest for the money it loans to go. And banks etc.
It's privately owned too and we redeem those promises to pay they don't
Go to a mint or fed office and ask em to trade ,silver , gold or any non paper promise to pay or consideration
They gonna laugh at you
High frequency radio
Will teach you more if you care to take time to learn
Looks are commonly deceiving, I've been told. Consider perhaps, con trolled op pos it ion. This is called a 🕸️ for no Good reezinz. Finding da curious flies.
It's incredible what the system is designed to do to unsuspecting people.
I've been debt free for over 10 years and people still can't understand how I've done it.
The idea of working for 3 or 4 months a year just to service debt is pure insanity.
I've lost jobs and been unemployed for a year at a time and still no debt, just savings.
Its a great feeling not having interest payments to think about.
Please explain how you can go without income for months at a time and not be evicted. Are you on welfare? Are you married to someone who pays your bills? Are you retired?
@@selohcin Like I said, no debt and maintain savings. Just because I have money doesn't mean I spend money. People think they need all the streaming services, I use none. People think they need to drive a newer car. Mine is older with low mileage and has been paid off for years. Could I have a bigger house? Sure, but I don't need a bigger house. Spend less than half of what you make and save the rest.
I have a good friend who makes 85k a year and is broke all the time. I have made 85k a year for a couple years before the company goes broke and I have 50k saved. My cell phone is 30/month because I pay a month ahead and paid for my phone up front. I don't have cable because why would I?
I don't eat out because I can cook for myself for a third of the cost.
Its not hard if you decide to do it. I value freedom above all else, and not being a wage slave is freedom.
@@selohcinno they don't I don't why should they we don't need help we help are self....😊
@@selohcin Savings. Save money instead of accumulating debt. Stop spending on things you don't need. Then, when you're unemployed, live off the saved money until you find another job. Oh yes, and possibly use the government programs that you qualify for between jobs.
You can also get into a trade union. Work 5 to 8 months out of the year and make near or over 100k, 200k + and get laid off. Then get a paid vacation for the next 6 months or so drawing max unemployment. If you don't want to work your life away and still make a healthy income.
Thank you. My friend needs to watch this.
In an age where everyone is trying to sell you something, it’s difficult to come by valuable information. Thank you ❤
Not true. There are other ways to get paid if you are not directly selling something. Making TH-cam videos is one.
@@mariahs1123Finally, someone using their brain 👍
great video vann. but can we talk about how nowadays 150k only gets you two cardboard boxes ducttaped together next to a kicked over porta-potty
Not at all, deals still exist in many areas of the country, if you’re willing to think outside of the programming…
@@TrickleCreekFarmyou mean living in the ghetto or 1 hour away from work
@@ragedsycokiller Lol, that’s still a limited mindset. You have to be willing to sacrifice your wants for a better outcome that will inevitably require hard work & diligence & again - going without.
In California
@@TrickleCreekFarmhaha I found a 3 bed home one town over for $210k that needed a new roof, new flooring, every room remodeled, all new appliances, septic system replaced (tank was dug up), and then some... You can't find good deals in many areas
Idk how I came across your channel but im about to binge watch everything on here. When I bought my first house in 2016 at 25 I threw up after closing when I looked at the amortization table. You don’t know what you don’t know until you do.
Thank you for this information. I had no idea! 😮
Definitely will do this. Blessings !
I am not poor no more !
"The more ignorant you are, the more exploitable you become." TY Ms. Vann for creating this TH-cam channel.
This definitely shows a lot of ignorant people can’t do math. Just pay $1100 a month extra and skip the LOC.
@@danoliver7161 right the complete irony is that shes selling courses too!!! HAHA they are getting robbed just not by who they might think.. this lady fishyyy af lol also her math is off 14% of 10000 even averaged is like 1000 bucks a month in INTEREST not 117
$10000 x .14 = 1400 / 12 months = $116.66. she's right there or am I wrong?
There's a reason for which "they" made sure this country didn't traditionally learn how money really works in high school. Thumbs up if you know we'll be better off as a country by having real conversations and focusing on the truth about EVERYTHING.
I like that "REAL conversations" because most conversations are literally just fake, where people lie back and forth (at their own peril, too) about the issues and then pretend they came to an intelligent solution.
That is the truth unfortunately. The Prussian model America decided to use to inculcate its citizens has done it's job of shutting down people's free will and critical thinking. A lot more people are finally waking up to this all we can do is spread the word and use this knowledge against the powers that be. 😉
They teach this in school. Y’all just don’t pay attention or expect it to be spoon fed in a lesson plan.
@@kowboy702 while I would agree one needs to get off their ads and not expect to be spoon fed the info. It takes a desire to understand and use the many resources available. Public libraries abound that contain this type of knowledge but other than basic finance, like how to manage a checking account etc, in high school during the 70's, unless you chose business classes as electives, then no, it wasn't taught where I went to school. Other school boards around the country may have arranged classes differently. Regardless, the education model used in this country is a mess. I have quite a few teacher friends and family and I've heard a lot of stories from their classroom experience. I think home schooling would be preferable at this point. America has been on the slope of decay for a while now. Its truly become what Orwell envisioned. The technology has been here for a while and gets more and more intrusive every day. We have power each time we choose to make a purchase using the fiat debt system we've all been duped into believing in. It will eventually crumble. They always do.
Governments around the globe are pushing CBDC's as the answer. We should reject this outright if we're to keep what little financial control we have using cash that's inflated and becoming more worthless each day.
So I would say thanks to Christy for bringing this information to as many as possible whether it's new to you or not.
Fractional reserve banking will go down in history as the largest ponzi scheme ever conducted.
I just find the joy in which you help people so sweet. Scams is all we have been fed. Thank you for being a caring person
8:23 Mistake: The bank loan cannot be paid off in 6-7 months. Because you did not take into account the expenses of $4,100 coming in for that month. If include expenses as previous, it would take 10 full months to pay off the bank loan.
Exactly
True.
Using her scenario, the extra $1,100 in cash flow, if applied towards the principal on each monthly payment, will lower your payments to a term of 85 months and total interest paid to $41k.
The ONLY way you can pay lower interest, is if you pay off the mortgage earlier. The ONLY way you can pay lower interest on the mortgage, when using a LOC or any other loan to pay off the mortgage, is if that second loan has LOWER interest rate.
That is why I don’t like how she just brushed off the interest rates in the very beginning, “whether it’s 2% or 7%, doesn’t matter.” It matters A LOT. Interest rates are king here and what you should focus on. For example, I have a 3% mortgage. You bet your ass I’m riding it out to 30 years. When accounting for inflation, that 3% becomes 0% in the eyes of the bank. They WANT me to give them their money back because there are HIGHER rates to be got in the current market. But I’m not giving them their money back so quickly, I’m instead investing my extra money in the markets earning 10-13% nominal rates.
Her advice is bad, tbh. Really bad. Imagine living the next 85 months on a LOC, with no savings and no investments. All it would take is a sudden high expense to make the family pay the 14% rate for a longer time than necessary.
@@petropartyka9299 yeah this video is pretty dumb...
Agree, Also is a bank going to give you a 10,000 line of credit after 2pmts
I’m a recent college graduate and I barely know anything about housing in general. Do you have any advice as to where I can start to learn about financial literacy?
I got my real estate license a few years ago, and when I was going through my class they explained the math for an amortized loan.
Once you do the math, you’re paying more for interest than you are for your home.
That was the start, but after a few other revelation I was so appalled that I couldn’t even practice real estate once I had my license.
It felt so disgusting to involve myself (for profit) with something that was so obviously unethical.
You are the change in the world you want to see, good on you for making your choice
No we need people like you as real estate agents. You can teach buyers a better way to borrow.
Same here. I actually went on to have a career and didn’t realize how much of a scam the industry is until I was a few years in. I quit.
So what? That's the risk they take loaning idiots money over 30 years. Do you have any idea the risk of a fixed rate mortgage over 30 years? In Europe most mortgages are variable rate....because rates change. In the US the interest rate risk is on the banks, not the individual and that's costly. The banks take on huge risk taking such a long fixed rate loan and they are going to charge you to buy your house for you.
@@AEVMU >in Europe
Filtered.
I can’t even express how moving it is to hear someone giving 15 minutes of solid helpful advice instead of peddling some six hour webinar of the same information, nothing more, at an exorbitant price. You are a treasure to our country and dear to its future. I shared this video with my loved ones and asked them to subscribe. Thank you ma’am!
This is good advice. You actually end up paying even more using this method.
@@Jerrydiehard wait what you do not agree ..how are you paying more...
This is terrible advice. You’re accruing more interest with this elaborately ridiculous and ill-considered plan. You would lose more money by doing what she’s suggesting here because the interest rate of the HELOC/LOC would be higher than simply leaving your total loan amount in the original mortgage at a lower rate.
Just pay extra principal and you’ll save more.
@@kamwow3207 HELOC was a last suggestion. She's explained how to pay down your principal
Give it time, she will be peddling soon. This is nonsense.
Gold knowledge! Maybe this is the reason why "finance" is the most requested course for HS and college currently today. Kudos to you for sharing your "wealth" with others. Appreciate your contribution to my family.
Bless you! This makes so much sense. I can’t thank you enough for this information.
Loc isn't paid in 6 months. You forgot they have 4100 of expenses on month six and that needs to be accounted for as they have no money as they used their money to pay loc.
I ran this in a spreadsheet with her numbers. You could only pay the $10k every 9-10 months. It would take ~7.5 years to pay off this mortgage. If you took that extra $1100 and just paid that toward the mortgage every month, you'd actually pay off the loan two months faster, but you'd have paid $4k more for the overall loan.
Worth it. Build your wealth, not the Banks.
@@magma9138 I would rather people build their wealth by having investments. Paying off debt feels nice but isn't always the best. Considering 12k a year will turn into a lot more than the interest saved.
@@mrdanwilson1 Does the $4k you pay more on the loan take into account the interest you paid for the LOC along the way? I think if the interest was included, it would probably be cheaper just to pay the extra $1100 a month to the mortgage
I’ve run the numbers as well. I agree her math is incorrect. LOC is paid off every 9 months. This method costs the borrower about $3,500 more than just paying an additional $1,100 towards the mortgage every month.
I rolled the ghetto lottery. My dad got unjustly shot and killed by police and I was able to pay for a house in 1 large lump sum skipping all the mortgage bs and bank events.
Sorry for your loss
@mailboxxy very sorry to hear that happened 🙏
My condolences brotha, no amount of money can bring back a family member. At least his unjust sacrifice has provided a means for you to build a more empowering legacy for your family 😢
I have no mortgage $125k house, no CC debt, no vehicle payments. I haven't had a vehicle payment since 2008 when i said never again.
Petersons are something else.
You must have 2 mil in the bank
How did u no longer have to pay for the vehicles?
Amen! Especially if the heartless repo men come through.
@@crystalsmith9038only buy vehicles you can pay with cash or once you pay one off. Keep up maintenance .
Thank you so much for this info !!! You are saving people’s lives with this information.
@Luis 🙏❤️
Paying an extra $1100 (free cashflow) into the mortgage each month would have nearly the same effect. It would save $172,214 and reduce the time by 7years and 1mth or so. This could be useful for those that don't have access to a LOC.
This is correct. Using a line of credit at higher interest than the mortgage actually costs more than just taking that extra $1100 and applying it directly to the mortgage. There's no need for the line of credit.
@@dabeev3006 is this true even for the first payments on a mortgage that have the most interest on them? It is never worth doing?
Is it though? My understanding from the video is that the 10k chunk all at once would alter the amortization faster. Rather than lowering it slowly over the course of 9 months.
The $1100 is for their food, gas, etc. How are they supposed to live without these essentials?
@@ROlson-dx2jc no, that was part of their 3k of living expenses.
I almost passed this video because of the detailed content on your board. I’m glad I stayed.
Same here! I listened 4 times but still haven't looked at that board.
So, am I missing the 10k amounts , what’s the interest on the 10k? 150k house is a shack in 2024. So if they were able to pay off 10k in six months surely they could afford more than 150k house. Seems quite dumb.
Me too!
@@kerryburnett5240you didn’t listen very well. They pay down their mortgage with a line of credit. If you follow the link to her website, she talks about a client with a $500k loan but it’s all the same idea. Also-some of us bought our “shack” a while back and that’s the amount we still owe after living in it for 10 or 20 years. So it’s not dumb at all. The only problem is that even with great credit, the bank will sometimes turn people down on the line of credit.
This video completely changed how I think about mortgages and buying a home. I bought my first investment property in cash and now am so happy that I did. Thank you for helping us all understand.
You are a LIFE SAVER! THANK YOU FOR HELPING US ALL WITH THIS INFORMATION! Please keep doing what your doing!
Life changing stuff right here. Thank you so much. God bless you ❤
@Rareprune THANK YOU SO MUCH!!!
WOW!!!! I am very excited to share this with my wife, what valuable information!!!
Where were you when I bought my first house?! God bless you for giving us this information
I love videos like this and people like you. Thank you so much. I’m running with this and creating generational wealth for my family ❤
Just checked on property apps: the interest is more or less 100% for a home. How is that LEGAL
We are looking at a house now and with this market if you do a 30 year loan and never pay a penny early you will pay 1.5 times the cost of the home just in interest.
You're talking about governments who colonized, massacred, committed genocide all over the world, enslaved millions, assassinated, created coupes in middle east to destabilizeand put their puppets in there to rule and silence their countries as they steal the resources. AND they didn't give a damn about thousands of children massacred by Israel, US and europe governments but when it's money like their ships full of oil/cargo was at stake...well, they went to war and bomb Yemen. You're talking about the most ruthless mobsters, thugs in the entire world who went and killed 4 million Iraqis, who bombed Hiroshima where generation are affected for the rest of their lives and who want to preach morality. The scum of the earth don't care about legalities but what they can get away with on the back of civilians, even if it means drawing blood from their bones.
Well it's been illegal throughout many time periods and places for the last 2000 years. Usury was illegal under Christian kingdoms and both Catholic and Orthodox, Jews were allowed to practice it though... strange.
@@JohnDoe-le8fythe small hats are your overlords. They are steering this country down into a dark hole.
Because the fed spent too much money during Covid causing massive inflation, and this is their way to get it back.
You just blew my mind with this info! THANK YOU, THANK YOU, THANK YOU, THANK YOU!!!! I can't wait to start working on this! You are a blessing to EVERY person who has watched your videos!
God Bless you lady
And everyone else who shares valuable information to help others
What happens to the expenses in month 7, when all the income went in to pay off the loan? Her math doesn’t add up. In her example of 1100 per month of extra income compared to expenses it would take over 9 moths to pay off a 10k loan at 0% interest. Not 6 months to pay it off. Just put the extra 1100 per month to the mortgage and don’t pay interest on another line of credit.
Yeah and i still dont get how 14% of $10,000 is only $117
Can you explain that to me ?
@@PhsychoSomatic10,000 multiplied by 0.14. You divide by 12 because you pay $117 every month
Even if it were only every 10 months you would still save a ton of money ! Might take 10 years instead of 7 but after year 10 or 11 you have $ 967 more free money and 20 years of no notes ! Thats $2,000 a month to bank ! In 15 months you could buy a new car for cash ! Or you could buy a rental house for passive income !
@@chavitacanta008 just pay your $1,100 cashflow directly to the mortgage each month and skip the over complicated infinite banking BS. You will come out ahead I promise.
Definitely reminds me of the teacher who wouldn't let you fail her class at all!
Thank you for you !
This is conspiracy, "Said Biden voter"
I don't even have a home / mortgage, but I felt like I was just lectured by a caring aunt who truly wanted the best for my future. I feel as if my brain just had a firmware update.
You're doing a service to mankind. God bless you. Love from India.
Thanks!
The last part of the equation 4969-4969 forgets you have 4100 in expenses with only 5200 in income - 4969 - 4100 = -3869. Approximately every 6 months, you get a 3rd paycheck, which you’ll be 2600. 2600-3869=-1269 that you are still short.
From what I can tell, just adding the 1100 to the principle directly is a faster method to paying off along with the 2600 extra pay check approximately every 6 months.
Thank you for being one of the few with a brain in this comment section.
Exactly my thought. Directly applying $1k per month is nearly equivalent to 10 months of principal without all the hoop jumping. I am currently adding 4 months extra to my principal with zero "lines of credit."
i also noticed this, because she summed 6 months of income and only 5 months of expenses it would still have a balance of around 3900 on the line of credit at the end of the sixth month when you add the sixth months expenses. would be cheaper to directly contribute the 1100 cash flow to the principle rather than paying the interest on the line of credit
Can you help me understand what she’s talking about with the LOC cause taking it out and paying back sounds like it’s adding unnecessary steps
@@Abcd37g It is. Don't get a line of credit. Just take whatever surplus and throw it against your mortgage. Or whatever your highest interest debt is.
I just figured out that my mom and dad paid $180000.00 for their Veterans loan home that they bought in the exact year of 1971 at a total cost of $18000.00 dollars their monthly payments were $500.00 a month for 30 years, only $50.00 a month went towards the house!!! What a F-ing rip-off 😮
I'm so sorry; that is a travesty!
$500 a month is $6k a year... $6k times 30 years is $180,000... so what are you on about 😅
@@TruthOverFactread it again foo
@@BenJahMoNomad YOU read it again FOO LOL...
@@TruthOverFactSince you are unable to read. Let me explain. Her parents paid 180k for an 18k house.
Am I missing something? How is the family in the example to pay their expenses on month 6 when they put $4969.00 towards the LOC from their $5200.00 monthly income and pay off the LOC? Wouldn't that leave $3869 in unpaid expenses for month 6?
You're not, this is the error in her math. If you consider the missing unpaid expenses it actually takes ~88 months to pay off the mortgage using this method. This is more than it would take if you just applied the $1100 excess directly to the mortgage every month (~86 months). This is what happens when you combine shaky math with trying to pay a lower interest loan with a higher interest loan.
@@derekmcdanell6972the $1100 excess? You mean all of their extra disposable cash? Why would they just give all that to a mortgage payment? They have to live and life happens vacations birthdays etc. Hello?
@@maverickbull1909 That's literally what she advertises in the video. Don't blame this guy
Found the same error... pray nobody takes this advice and get's caught month 6 without enough to cover expenses.
Thanks I was looking for the error.
I knew something was up because their monthly cash flow is only $1100. In 6 months that's $6600. So unless an line of credit is literally a free money glitch something was wrong in her math to somehow pay off $10k with interest in that time.
You seem very honest and I can tell you really want to help the people. Thank you
@SergioB I appreciate your kind words. God bless you
great video. i didn't know lines of credit even existed until i started working as an accountant and found out that my company had a $10 million line of credit that it was using constantly
Additional note, if you took that additional $1,100 a month and made an additional payment to your mortgage it will all go towards principal and not interest. You could pay this loan off in less than 8 years and a total interest paid would only be $39,631.82, which is only $2,828 more than her method and you don't have to do all the work of getting another loan.
Also, her math is wrong at the very end of her calendar, because she didn't account for the expenses that still needed to be paid. So really, it would take more like 10 months to pay off the line of credit. Given that fact, I think the costs are the same, perhaps better on the mortgage.
Agree. This works especially well if you start doing this early on in the mortgage.
The 1100 was not extra. It was food gas etc
@@willsteen3302 No, she called it "cash flow" and it is the extra amount going to pay off the mortgage faster.
So just pay more early.
it's crazy how they legally abuse people...
@@gamergeek8933 "They aren't doing anything you aren't signing up for." - this is why i said 'legally abusing'
@@gamergeek8933 you realize most of the people barely can read...this is like sexually abusing the poor. no ethics. do you think that's ok ?
Lol, he deleted his comments. What a coward.
You allow your governors to make the rules in the banks favours yeah, your governor is working for who you are the bank well personally I believe he’s working for the Manx because the rules of shit that way rules to rip you off
@@john-mi1ud wtf is wrong with you
God bless you for sharing this knowledge to people who need it. It will come back to you 🙏
Putting the income into the credit line is genius. The stupid part of it is it was right below our noses, and no one tells us! Thank you, thank you!
It's not genius. And she's just another snake oil salesman under capitalism.
This is something they don’t teach in College unless you are in Finance, or Business Major.
No... It's not. If you think using higher interest rate debt to fix your debt works... I have some snake oil to sell you. What would really save money is using your income to pay off the lower interest rate mortgage directly instead of using a high interest rate loan to pay off the mortgage. The only reason a mortgage has a "higher" interest rate is because it is the (rate)*(the number of years). Taking out more higher interest rate debt just means that you get to pay more debt on the way to paying off the house! Just save up and pay off the mortgage!
I don’t understand how she put the income into the LOC. looks like she subtracted it. That’s where she lost me.
@bubbleboy821 the idea is the mortgage is not the actual lower interest rate as she states. 7.75 interest calculated over 135k loan is greater than a 14% interest on a 10k loan. The lower number doesn't mean less interest when it's calculated over the amount owed. Additionally, at 1100/month it would take 10month to save 10k when the HELOC can allow the 10k to be paid up front, paid off within 7 months as she stated, allowing the 10k HELOC to be used again for a 2nd time in the amount of time it would take to save 10k once saving the 1100/month income.
How she's adding/subtracting the HELOC figures is throwing me off a bit but I can see the value in the strategy
You are my superhero. Where have you been all this time.
Thanks for uploading.
Much love.
I love this video! The way we have been conditioned for quick access makes the intro seem very, very long. The information is worth the watch!
On month 6, when the LOC has 4,949 and the income going in is over 4,949 the balance goes to zero... but you still have the 4100 monthly expenses that have to get paid. You're disappearing about 5k in what they owe over 6 months. You can't pay of $10k in six months with only $1,100 a month. You could do this over a whole year but not every 6 months.
How is nobody else seeing this? How is she ignoring it? Even with their cash flow, that leaves $3849 .
Even if done every 7 months as she says, month 7 would reduce that to $2749, plus interest.
That’s some $22,000 in principal alone remaining at the end of the 4.5 years
But also
How can you even draw the $10k LoC down again if there is still $2749 outstanding??
@@brenfaltermeyerdude, I'm glad I'm not the only one seeing this glaring error! For a minute I thought I was just retarded and not catching on.
Thank you. I watched the video and no matter what voodoo i perform, I cannot get $1,100/month to pay off a $10,000 loan in six months. The $10,000 is either going to the mortgage, or it is going to this loan. It cannot be going to both.
@@brenfaltermeyer glad some of us are seeing it and saying something.
For real. Only explanation is a safety fund that can cover it, which would defeat the whole purpose of this "strategy"
Compound interest is the eighth wonder of the world. Those who understand it, earn it. Those who don't understand it, pay it.
- Einstein
@@Cartoon_Physics 8th winner, or Wonder?
~ this other gal
@neverBragg At least one other person was wondering...
@@danjay84 Many, but ... 🤫
Stupid auto-correct. I have no idea why it says "this gal". That was Einstein.
@@Cartoon_Physics It knows he was gender fluid.