Can you SAVE $69,000 within 24 Months? YOU CAN with this trick.
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- Опубликовано: 16 июн 2023
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The basic premise of this is that you are using a line of credit which has a yearly interest rate to pay off part of your mortgage which has an amortized interest rate. The mortgage has all the interest built in up front so for a 30 year mortgage for the first 10-15 years if you made default payments, the majority of your money is going to interest and not principle. The personal line of credit allows you to take that $10k and pay off $10k of the principle of your mortgage which in turn reduces the amount of amortized interest you would have paid on it. You still have to pay back the $10k from the personal line of credit but because the interest is based on a yearly rate your interest is much much lower and the payment is much lower.
When she's talking about putting your income into the personal line of credit, she's saying take your paycheck (after taxes, deductions etc) and put the entirety toward paying off the loan, then use the loan as a revolving line of credit to pay your groceries, gas, utilities and other living expenses. You rinse and repeat this cycle until the personal line of credit is paid off, then you do it again to pay off another $10k chunk of your principle. Doing this can save hundreds of thousands of dollars in interest over the life of a 30 year loan.
Thank you for summarizing! I understand what she meant so much more now.
Then use the loan as a revolving line of credit to pay groceries, etc etc.?
Nonsense! It’s not possible if you used the $10k to pay the mortgage down.
It would be better to just build up the 10K over 5 months and then do the exact same thing she suggests without needing that extra line of credit.
Basically what the advice here boils down to is "extra payments on the principal go a long way", everything about the loc is pure bs added on top
@@graceandpanic9281 You use the line of credit for day to day expenses AFTER you put your pay check into it. You take the line of credit, apply 10k to the mortgage, put your entire pay check back into the line of credit paying off a portion or maybe all depending on how much you make, then use the remainder on expenses. Rinse repeat until the line of credit is paid off and you can take another 10k to apply to the mortgage.
@@zilvarro5766 It might take some longer than 5 months to save up the 10k, but yes, making even a single extra payment a year on your mortgage will reduce the overall interest you pay on it.
I'll need to watch this at least 10 more times to understand what is going on
I thought I was the only one 🫣
It took me a few times to watch one of these videos. But then It clicked. I have been doing this and it works like a charm.
Same here. It sounds easy but for some reason still a little confusing to me. Don't know why
@@Dondonden1234 it took me a few times watching the video. Then it clicked. You will get it.
I think this only works on 30 year mortgages
Two additional comments to this wonderfully informative video:
1) Make sure your mortgage includes a clause that allows you to pay off the mortgage early
2) Make sure any extra payments you make are going towards the principal only
Thank you.
I think in this day in time, pre payment penalties may be the norm. Yes by all means make an effort to get a loan without them. Draw a big line through that paragraph with you initials 😂
Another option is you can take the extra $300/month payments and put it in a cd account or buy bonds at 5% interest. Then take that extra $ and pay off your home in 10 to 15 years
It is no longer normal to have prepayment penalties on mortgages in USA; you can call your lender to verify or review your mortgage docs. I always wrote a separate check with a note on it, ‘apply to principle only’ to pay off quickly.
Question: how can you roll this forward every month or two? $10 k per month applied to principle….would pay off pretty fast. I realize all other bills have to be paid too, but in this case there seem so be an additional $2 k of free cash flow.
One extra payment a year that goes to the principal only will make the mortgage go down 18 months.
Protect this woman at all cost!!!!!
Seriously, she's doing God's work.
As a mathematician with an economic background. I would like to give the best secret for saving your money:
Stop buying expensive crap you don't need, especially on credit!
Brilliant! Just go pay rent all your life!
You're 100% correct. We need to buy a home as small as possible. The rest of our money should be invested in a rental property or stocks.
@lilyanm-g3386 My home is paid for. However, you need a good down-payment on your new mortgage because more and more people are failing to pay their mortgage and have beenbthrown out!
Haha yes. But not just expensive crap that you don't need but even if It's cheap, the amount can add up very quickly...
Why did he buy a home at 7.35% interest? No twisted his arm ..
In 2006, I bought my first house with a 6.375% 30 yr loan! First month I put another $4k from savings and had a HELOC of $11k, borrowed $6 k to pay down the principal, my checking account was connected to the HELOC so as I got paid I put most of it in the HELOC to pay it down as fast as I could so I could dump another $6k! Paid that house off in 9 years and saved over $100k in interest
How? Makes no sense
What! There's a lot I have to learn.
Oh so it’s not a one time thing. It’s repeatable.
@budgetlifemillionairsby405 AWESOME!!! I used my HELOC the same way!
I need to do this!
I understand this!!!! I NEED to do this!! Thank you so much!!! Oh man!!, I'm sick knowing how much I've spent on my house these many years and the balance just hardly moved!! THIEVES!!!!!! ..... they know what they're doing and will continue! We all need to LISTEN to you Vann!!! Thank you!! I'm going to begin this process!! ❤
Hi, Is there something specific you’re looking for?
I would say I don’t know how I find you on RUclips, but I know better. My husband and I have been in prayer so that we get our credit scores up and our credit record in great shape so that we can purchase our forever home. It was no one but God that led me to *Pecuniary backdoors* . I thank God for this wisdom. Bless you.
No worries! To find them website, just do a quick online search using their name. Easy peasy!
Ma'am,
You are the BEST RUclipsr I have EVER seen on personal finance when it comes to mortgages, you are a GODSEND to people like me who they are CONSTANTLY trying to screw us over
All that’s missing is Income! If you have the extra 10k, just send it to the mortgage as a principal payment and you can avoid the shell game.
Exactly you still have to throw that 8000 expenses on the LOC. Why not just throw the extra 2000/mth on the mortgage instead of all these mental gymnastics.
Do the math and you'll have your answer.
"Don't pay anybody to help you with your finances". You get a thumbs 👍 for that 1 sentence alone
Those words alone got me subbed
😂…Thank you, but it’s the truth!
Unless you are clueless and hate numbers with a passion. Then it just won't get done
How can i get rid of PMI, i still have another 3 yrs!
If you have a conventional loan, and you house has appreciated by 80% call your bank and tell them you want to get rid of your PMI, they will send out an adjuster which you pay, and will determine the value of your home.
the cost of the LOC (from interest) PLUS the total interest using vb will cost MORE than making an extra 833.33/mo payments. when you compare interest saved using vb chunking (10k) vs making monthly extra payments for 12mo's, you'll find that you save more interest making extra monthly payments.
Great content as usual, I loved this as I am about to invest in uk property with 70k deposit (plus fees and more savings for furnishing and decorating) to buy my own place, but I am also treating it as my fourth investment, having two spare rooms for lodgers to cover this property mortgage and tax costs... and to build my equity whilst working my day job for my next investment.
Houses are so expensive in the uk now. How would anyone pay off 400k plus, unless they want to commit to a ball and chain lifelong mortgage? Am I missing something? Seems like even if you had two professionals there that would take decades to pay off…?
First, you need to have a salary of at least 25k before you will be considered for a mortgage, that you need for properties. If you want to achieve a 75 percent yield yearly, try looking out for an investing advisory or else you will be competing against professionals themselves.
Generating returns are usually phenomenal. What would have been really interesting would be a proper breakdown showing their costs , services, investors return..
That's an intentional way to live debbie, that's the only way to become debt free. I've already paid off two previous mortgages. Now I'm working on my third and I cannot wait since it has to happen before retirement in four years and I'm already getting there the proficient way, Luckily for me my trader and coach Frost Hilda has been using every opportunity to ensure I benefit from each turn the market takes.
Good luck staying debt free as much as possible in the future.
Absolutely Zachary, contract agreement splits are favorable, I’m also exceptionally well positioned as I’m privy, so that’s a good return deal for any investors creating revenue for more interest.
You’re not taking into account the fact that he is still paying a $490,000 mortgage for the 23 months. The difference between the two mortgages, in terms of interest paid over 23 months, is roughly $69k for the $500k mortgage and $67k for the $490k mortgage. So if he uses a line of credit to put $10k on the principal, he is saving $2k in interest payments over 23 months, but he’s paying $2400 for the line of credit if he decides to not pay it back. So it is costing him more.
I thought the same way as you and I’ve had a discussion in another section of the comments section. I assumed that “within 24 months” meant the next 24 months. However, the saving amount mentioned apparently comes in year 29 and 30 when the borrower makes no payments because the mortgage is paid off. If this is the case, the title should say “Save $69k over 30 years”. If the house is sold before the end of the mortgage, the full $69k in interest savings is not realized.
@@gregmate2293THERE'S the catch!
I believe you are right. Lets push the idea much further, lets take 50 times a 10K loan ... wow our house is pay off after the 1st month ... but now you have to pay 50*$100 = $5000 just as interest every month ... you are not paying of the principal... this prove that the whole idea is wrong.
Bottom line, just borrow what you need and not more and pay every month as much as you can as everything you pay goes against the principal.
Interest is not “front loaded” on a mortgage. It is charged per diem on the outstanding balance. If you made a $10k principle pay down , as per her scenario, you would save $73,919 in interest over the life of the loan and pay off the home 2 years earlier by maintaining the original amortization schedule for a $500k mortgage. The balance on your mortgage will be $490k the day your servicer receives the $10k principle pay down.
also he cant put the whole 10k in mortgage cause he got other bills
I work in a furniture store office. A problem I see everyday are young people getting the interest free financing and then buying more expensive items than then they should. The financing is truly same as cash and no hidden fees. But instead of getting a $900 mattress they get a $4000 one. They look at the $67 a month for 60 months payment and go that’s not much I can afford that. They don’t take into account all the other things they pay a month or what happens if they lose income in year 2. Or that they could have used the other 3100 on other things they need. If it is something you could save up for you should. That open line of credit affects your credit score and the ability to get other lines of credit. Don’t get me wrong the 4000 mattress is worth every penny, but people should use their credit wisely not impulsively.
You're right about spending, but not the line of credit. The LOC is like a gun, or a drill if that makes it easier... I'll actually leave the comparison up to you, but in short - don't misuse it. peace
Making use of the 0% financing when you are ready to pay cash _can_ be a very prudent way to handle this. If you discipline yourself and place the cash in a HYSA or money market earning ~5% interest and auto-draft from that, you'll have ~$600 at the end of 5 years. Of course, that $600 won't be worth as much due to inflation, but it's better than 0. It also gives you the freedom to use that money as an EF if you ever had to - it's hard to get a loan an existing piece of furniture at 0% if you did need $2000 for something. Of course, 5% interest is a gamble for 5 years long since we were lucky to see 1%+ for nearly a decade, but even 1% still gives you $100 at the end.
I'll also add that if you kept the account at $4000 for the lifetime of your financing, this makes it look even better. You'll need to contribute $40/month instead of $67/month. After 5 years, your furniture is paid off, your account is $4000, and you only needed to contribute $2400 to your account, since your account earned $1600 in interest. And again, if you ever needed to, you could treat it was part of your EF.
Pro-Tip: Just pay at least one or two extra mortgage payments per year and apply it all to the principle. You'll knock YEAR'S of interest off the mortgage loan.
1 extra payment a year going to the principal will lower 18 months the life of the loan.
Chuinking us better
@@PablaMMooreis it true that you would need to call up the lender and let them know you want that extra payment to be applied to the principle otherwise they will apply it as a regular mortgage payment and you just want have a payment for that month or months?
@@joy2come119 In the payment statement there is an option for extra money to be put to the principal. If that is not the case, yes you have to call the bank and tell them how much extra money you want to be applied to the principal or they will apply it to the regular payment. Each bank payment stub is different. Online payments may have that option also.
@@joy2come119yes talk to your lender to ensure the payment is principal only. Sometimes online payments will have principal only options, in which case the call to the lender is not necessary in my opinion. Often times however, online payments do not have the option to specify principal only payments.
This lady has heart and integrity . She needs to seek cars!
I would buy every one of my cars From an honest person like she is.
😂❤
I cried when I was signing my papers and I saw all of my mistakes after I sold the property. SMH. Schools don’t teach us what we need to know. 😢
Because the world is set up to keep you poor. Why would they teach you how to play the system?
Schools are not much more than indoctrination centers, intended to create obedient workers in factories. You know,....mindless drones who are taught only enough to keep the lights on and the machinery running for the real 'owners' of this factory called 'Society'. It's been this way since at least the dawn of the industrial revolution of the mid-1800's. The notion that the youth are receiving an 'education' at school is a comical farce. As the great comedian and social commentator, George Carlin, has stated, (and I'm paraphrazing) "The 'real' owners of this country are not interested in having a population of people who are sufficiently well educated as to realize how they are getting screwed by their government, and the government's owners, who threw them overboard about 70 years ago". Furthermore, research has shown that despite significant increases in spending on 'education' in America over the last few decades, the students are getting dumber and dumber, scoring ever lower in standardized testing as compared to a multitude of other countries around the globe. So, if it's not a question of money, might it instead be that those in power are altering the curriculum and the standards to which the students are to be held? Where I live in Canada, I have recently been informed that if a student fails a grade they get passed on to the next grade anyway as opposed to having to repeat the failed grade, as was the case back when I was a youth. Is it any wonder then that the whole thing is circling the drain faster now than ever before? Good luck America. By the way, it's not much better here in Canada, so please don't get the idea that I'm just picking on the US of A.
It's not the school's job. It your parents
Schools teach you to keep the rich richer. Get a 9-5 for the millionaires.
Be honest, I'll bet if schools offered personal finance classes, most kids wouldn't even sign up. Second, if she taught the class, they'd all be worse off for learning something so flawed.
I wish i learnt most of these principles about seven years ago. A lot of people have been trapped strongly in the matrix-- Go to school, get a job, and then slave your whole life. Many miss out on life-changing information that could have great effect on their finances. I played with the stock market sometime in 2020, and I was surprised at how well it turned out. I want to put in $90k more into the market. I heard people are making really great returns despite the downturn. Any recommendations?
Avert too-good-to-be-true con tricks. Consult a fiduciary counselor; these professionals are among the best in the business and offer individualized guidance to clients based on their risk tolerance. There are undesirable ones, but some with a solid track record can be excellent.
Yes, I've been in constant touch with a Financial Analyst for approximately 8 months. You know, these days it's really easy to buy into trending stocks, but the task is determining when to sell or keep. That's where my manager comes in, to help me with entry and exit points in the industries I'm engaged in. Can’t say I regret it, I’m 40% up in profits just in 5months with my initial capital of $160k.
How can one find a verifiable financial planner? I would not mind looking up the professional that helped you. I will be retiring in two years and I might need some management on my much larger portfolio. Don't want to take any chances.
My Financial adviser is ‘’Stephanie Kopp Meeks ’’ she’s highly qualified and experienced in the financial market. She has extensive knowledge of portfolio diversity and is considered an expert in the field. I recommend researching her credentials further. She has many years of experience and is a valuable resource for anyone looking to navigate the financial market...
Thank you for this tip. It was easy to find your coach. Did my due diligence on her before scheduling a phone call with her. She seems proficient considering her resume.!!
I just discovered you today…the first video I watched was paying down debt without any extra money. That video popped up and couple times and I waived it off and then today I decided to watch it and I am flabbergasted…thank you for your wisdom and education!
My take away is that mortgages are typically “compounded” and lines of credit are “simple” interest. When it comes to paying debt, you end up paying significant less money for a simple interest loan even if the interest rates are higher. Compounded interest = interest charged on interest. I think I see why mortgages are considered “ highway” robery.
I'm lucky, I'm past the saving mode and well into the spending mode. Retired 7 years ago. Work hard, save your money and retire early. It's a solid plan that is working great for me.
@@victoriajonas44 Talking about being successful!
@@victoriajonas44 I know I am blessed because if not I wouldn't have met someone who is as spectacular as expert ROCHELLE DUNGCA-SCHREIBER..
@@victoriajonas44 She helped me recover all I've lost trading by myself
I've been investing and doing it on my own but end up losing all..
Her name is ROCHELLE DUNGCA-SCHREIBER; you can reach ouy yo her by doing a Google research!!
….more scammer bots
Probably one of the most impactful RUclips videos you’ll ever see.
You are a blessing Christy for using this knowledge to help others. Thank you for the love you show.
Making money is not the same as keeping it there is a reason why investments aren't well taught in schools, the examples you gave are well stationed, the market crisis gave me my first millions, people shy away from hard times, I embrace them.. well at least my advisor does lol.
It's important for investors to exercise caution with their exposure and be mindful of new purchases, particularly during times of inflation. It's advisable to seek the guidance of a professional or trusted advisor, as high yields in this economic climate can be challenging to navigate.
Monitoring my portfolio closely has been incredibly rewarding. In just the past two quarters, I've made an impressive $173k. It's fascinating to see how experienced traders can generate significant returns. This has definitely been a bold and exciting decision for me.
@@TomD226 Please pardon me, who guides you on the process of it all?
@@TomD226 Thank you for this tip. It was easy to find your coach. Did my due diligence on her before scheduling a phone call with her. She seems proficient considering her résumé.
Great sentence.
She is so right I bought my 250k home in 95 with a 15 year Mortage had it paid off in 8 years . Now I am saving $3000 a month I bought a second home as rental Its paid off also I have ZERO debt and my monthly bills are on Auto pay , It's so nice not having to white all the checks every month and have to scramble to pay them living Paycheck to Paycheck. I pay Cash for Everything I own 5 Cars ( Three 60s classics), One Airplane , Life is good if you Smart , Daddy did not raze No Fool . Boomer Here in So Ca.
NICE! @Bob
Boomers could literally close their eyes and buy any real estate and make money. Generations after you had to work literally 3x to 5x harder or earn 3x to 5x more ...for the same exact jobs and assets. Flexing as a boomer is pathetic.
I’m poor, I rent, and I don’t know jack about finance. But this just made me want to learn! My late father was self taught at investing and was really good at it. He did quite well. But he never taught me. All his knowledge passed with him. But now I feel I can hope. That I can educate myself. And finally stop struggling.
Thank you!
You got this!!
@@petohmi thank you sir!
Don't trust this lady's advice though. She's full of crap and doesn't understand the math. She speaks with a lot of confidence, but she is completely wrong!
I graduated with honors in business, with distinction from engineering, and have loved compound interest since high school (where I got 97% in math). Please don't trust this crackpot, for your own financial safety! I've reported this video to RUclips for misinformation.
Listen to Dave Ramsey! Get his books from the library! He’s all over podcasts and videos.
@@RoxanneJ yep! A friend highly recommends him! He’s on my list of to-dos after first making headway with depression and anxiety. I think a lot of people who don’t take care of themselves financially do so because of mental health issues. It’s hard to act in your own self interest when your mind is overwhelmed.
Thanks and Blessings from this new subscriber! So under the pretext of owning my own home, or homes over the many, many years of mortgage payments that I've been making since 1980, I never quite understood the thievery that I have allowed me and my family to be subjected to until you have so thoroughly and reasonably explained this to me. The feeling I am going through at this moment is nauseating, very, very nauseating and to think that I was told what a great deal I'm getting with a 30 year VA Loan. Well, the Good News is, one day I'll be leaving this place for my True Home, and JESUS paid that mortgage for me. Thank YOU JESUS! Thank you Christy Vann!
😂😂
Jesus didnt make any payment. Smarten up
@@FimotivationGod provides for us. Jesus died on the cross for you and I as a living sacrifice. He has paid the ultimate price with his blood for our sins for you and I.-John's wife
I am mind blown. I need a LOC immediately! I love the ending about "you don’t need a financial advisor, your mama or the bank" praise The Lord for this video.
Praise The Lord for He is so Good!❤️
Better yet, build $10k+ in savings
It’s nonsense
Do not fall for the lies in this video.
@@ZimZam131hi. What is the lie?
Wow !! Thank you so much for opening my eyes up and Helping my family to understand our finances. .
THANK YOU THANK YOU
Thank you for being HONEST!!
I'd like to see this method compared to paying an extra $834/month to the mortgage ($10k/yr). Factoring in the fee associated with creating the LOC and the interest to pay it off in a year.
Just test it on a mortgage/loan calculator with the different scenarios.
@globalfamily8172 I can certainly calculate it. But I don't see the value in the LOC vs. paying more on the mortgage. This seems like an easy way to get yourself in trouble.
Thank you so much! Out here seeking truth in many ways and I don't believe I stumbled on you by chance!
What a blessing you are❤
So if you have 10k to pay off the LOC, why wouldn’t you just apply it to the mortgage in the first place first place? The LOC isn’t necessary.
According to the Amortization schedule , that amount, knocks off years, causing you to be ahead. Oh and the income being added in, is some kind of incentive. Bank rules, not actual life rules
That's what I understood so far..
Yeah I'm still confused. Why are you getting a heloc for the same amount of income you get every month
its just an example to show how easy it could be to pay off the LOC. If the person made less than LOC they would still only pay a couple hundred in interest to the LOC to bite down tens of thousands on the interest from the mortgage
That’s what I did any amount of money I saved I just put toward my mortgage not a LoC
I so glad my dad explained this concept to me when i bought my house 20 years ago for 125k and put 75k down and paid it off in 5 years. That knowledge was worth 4 college degrees if not more.
I am a CPA and have taken financial "freedom" courses - and I thought "oh, I will just click on this video and see if she has anything new to say." I am floored. Not only does the math work, but the psychology works. If I am having to borrow on my home LOC to buy something extra I don't need....let me tell you, that is a HUGE deterrent to buying things I dont need. LOVE THIS
Right? And this isn't a slight, but, what does that tell you about our education system? The comment above you is a mathematician and economist, and he's been scared into submission by the banks, lol. The banks you can understand their motivation at least, they're greedy, and free to make money, but why isn't this in every grade 12 classroom around the world? Personal debt is collective national debt. They make so many economy shaping decisions based on housing affordability and personal debt vs wages vs unemployment. If everyone was taught this, you think it would make for one helluva strong nation.
The world is a scam.
Peace
@@Todd_Gerhardtwhy is it calculated differently?
Mortgage is amortized interest and cc is simple interest
I was thinking about the same thing. How do you satisfy a debt without paying it? It makes no sense. @@thomasxxxxxx2345
Too bad she is completely wrong. You’re still going to end up paying $60k or more in interest regardless if you borrow 10k. BECAUSE that interest charge is for the whole principle, it’s not for the measly little 10k.
This method makes SO MUCH SENSE!! I am so grateful for you.
@CZebelle I’m so glad!
You have made a difference already. You have educated a young black bredda...One Love
Love the brutal honesty! Im so glad my hubby had the goal of paying off our mortgage early. I just turned 40 and we have been debt free for several years.
In America, Debt Free is an illusion, the government owns everything thanks to taxes. You lease it until you die or give up the charade.
PLEASE SHARE how your doing this,ARE KIDS ARE IN TROUBLE WITH THESE SCAMMERS...TRUTHS NEED TOLD,AND HELP IN PROPER EDUCATING THEM...SCHOOLS ARE NOT ,AND WILL NOT‼️🙏
Makes a difference when you're married
Yes. I could have written this. But, yeah makes life d
So much easier.
Basically true…
I will re- watch this a few more times .. your an angel for teaching us this lesson!
Thank You so much for this video!! My husband and i are looking at buying a house, they offerd us a 10% intrest rate. And after watching your videos i know i will Never take out a mortgage. I am actually planing to save up enough money to buy a cheaper house in cash. Thank you for all your very helpful advice and knowledge!! 💖🙏 God bless
Starting early is the best way of getting ahead to build wealth, investing remains a priority. I learnt from my last year's experience, i am able to build a suitable life because I invested early ahead this time.. I pray that anyone who reads this will be successful in life too 🙏🙏🙏
you've remind me of what someone once said "The mind is the man, the poor is in it and the rich is it too". This sentence is the secret of most successful investors. I once attended similar and ever since then been waxing strong financially, and i most tell you the truth..investment is the key that can secure your family future.
I urge everyone to start somewhere now no matter how small, this is literally the time for that, forget material things, don't get tempted,i became more better the moment i realized this.
yeah investment is the key to sustaining your financial longevity but venturing into any legitimate Investment without a proper guidance of an ex pert can lead to a great loss too
exactly! That's my major concern and what kind of profitable business or investment can someone do with the current rise in economic downturn
Hello nice comments here please what exactly kind of investment are you talking about here, I'm really interested too
You are AMAZING!!! I get so excited when you post a new video! We only have our mortgage left and have started our velocity banking journey a couple months ago thanks to you!!! We can’t wait to be 100% debt free!
Wow! That’s wonderful! Thank you
The feeling is indescribable; I've been completely debt-free for a while, so my main focus now is my charities.
@@marietaylor5174doubt you're debt free
@marietaylor5174 do you pay taxes?
This is complete bullshit. She's wrong. If you keep that mortgage all you do is pay it off a few years early. You are actually only saving the interest on those last few years, which is minimal. This is precisely why they front load the interest. Because most people refinance or sell between 7 to 11 years. It looks slick on paper, but its BS! Trust me I have a BS in finance, an MBA, and I've been a mortgage broker for 25 years. Also 7% is historically speaking a low interest rate. People only think it's high because the incompetent fools in government love to mettle in the economy and they manufactured ridiculously low rates after 2008 and created South American style inflation making everything you buy now significantly more expensive.
The problem today is not 7% interest but a house costing $500,000 that should only cost $100,000. Run the numbers on $100,000 @ 15% versus $500,000 @ 7%. The interest rate is rather meaningless. The bigger issue is the cost of the house, which like college tuition and healthcare, keeps skyrocketing because all 3 are heavily regulated & subsidized by the federal government.
The better thing to do is get on a budget, save enough for a bigger down payment, then get qualified for a 15 year mortgage, which has a lower interest rate, no mortgage insurance, and you pay it off in half the time or less if you stick to your budget and pay extra every month.
At the very least get on a budget and save enough for a 20% down payment to avoid mortgage insurance. Then stay on that budget and pay extra every month towards principal to pay your house off years ahead of time. Better still, put 20% down and get an interest only mortgage. That payment is less than a 30 year fixed, butt make the same payment as a 30 year fixed and you're paying the principal down much faster. If you can't wait, put down 10% but use an 80% 1st mortgage and a 10% second to avoid mortgagee insurance. Pay the 2nd off as quickly as possible then apply that money to your 1st mortgage every month and pay off your house in less than 20 years.
There are plenty of other ways to to save, but these are the easiest and most practical for most people. But the real problem is the government, inflation, and the public as well. American love to spend and few are on a budget. Few are saving.
If you really want to save and make a lot of money find a successful real estate investor and buy them lunch. Work for them. Do anything you can to learn from them. Learn how to use debt as leverage. Make mortgage debt a tool to wealth & freedom rather than be its slave, which is what the government and the elites want so they can control you.
This is excellent !! You are absolutely RIGHT ON !!
Thank You so much !
MERRY CHRISTMAS !
This is the kind of stuff that should be in high school math curriculum to give kids a fighting chance in this crazy world. At least the information is more accessible than ever now with wonderful people like you taking the time to upload. Thank you!
Absolutely agree. Career planning should be required course as well. Teach some critical thinking skills so kids don’t graduate from hs with no idea what to do now. Not everyone needs to go to college. Careers in plumbing, H & air, construction etc. are quite lucrative without years of college loans for a useless degree. Maybe we’d be able to find someone to fix your home maintenance.
Unfortunately, they don't want anyone to educate kiddos on this stuff. Makes me so angry
Ditto!
This is exactly the reason why they don't teach this in schools. We are teached to work to make the rich even more rich. They use us to gain more money.
@@lorihamlin3604 I completely agree with you. I laugh at all the people who went to college or university untill they're 30 and cry they can't find a "well paying job" where they studied "so hard" for. They missed +10 years of experience in a job which is demanded at the job market. They can better skip getting a mortgage and save their hard earned money for the retirement home already. I know a guy who's 35, lived with parents and is constantly hopping from 1 education to another. No one is ever going to want him.
The problem with this is you are assuming the homeowner has 10k laying around to pay the line of credit. Instead of taking out more loans, just throw the 10k on the principal of the loan.
This concept is for people that don't have 10k lying around. She's basically saying pay the lump sum to principal towards your mortgage to avoid the huge amount of interest you'll be paying. That lump sum you borrowed (PLOC) gets all your income towards it and instead of paying it towards your living expenses. This only works if you have your finances in order and know your income/expenses to the penny(like an adult). Let's say you got 2500 in income and 1000 in expenses. 1500 gets paid towards that 10k if you use it as your "checking". Takes you like 6-7 months to pay that off. Rinse and repeat for a couple years and your 30 year mortgage is like 10 years now.
@@razorblade1179 I have spent some time thinking about this and how it works...I think it's legit
I think she meaning if you have a line of credit like a credit card 10k or more. then use your income to pay the credit card back off.
Thank you so much for opening my eyes! I am older now but can still benefit from this tactic but I am definitely passing these videos to my now young adult kids. Excellent video!!
This channel is such a blessing! Thank you Miss Vann!
Omg. I’ve done velocity banking on paying all my debt off, but never considered doing it on a mortgage. I love you! Thank you so much for opening up my eyes on a mortgage.😃
Thanks for watching!
Comparing the 12% interest of $10k over 23 months to the 7% interest of $490k over the same period, and calling it a savings, is exceptionally backwards math. You note she never ran the calculations for $500k vs $490k on the mortgage. This scenario only works if you have $10k to pay the HELOC off immediately. If you have $10k, just pay it towards the lower interest mortgage. Using the Heloc as a checking account also does not work because the interest accrues daily. It is not like a credit card where if you pay it off by the end of the month, you won't pay interest. You pay interest from day one! In fact, you would be better off using a credit card as your checking account. Especially if you get points with cash back.
Thank you, I thought I was missing something here.
Stumbled on your videos and I am honestly glad I found it. God bless.
I haven’t seen all of your videos yet but I think what would be helpful is showing the Mortgage Amortization Graph. That way people can visually see when they first get a mortgage the majority of their payment goes towards interest AND it really doesn’t even out (50% interest 50% principal) until mid way of the loan period. Also showing an Amortization Calculator and plugging in early principal payments, annual or monthly can really be effective. This is the way I figured out the insane amount of money the banks were collecting in the beginning of a new loan. Motivated me to add principal payments monthly and anytime I had extra money. I do not have a financial background but these tools showed me everything.
Do not understand finances : Never been educated to : This lady should get a public award for what she just demonstrated and shared. The right financial education and guidance is a must for everyone ,no matter what their circumstances : Would save a lot of debt misery if it was taught in schools.
🥲 so precious! Thank you so much for your kind words. You speak truth.
@@VanntasticFinanceskn Banks’s are some of the largest political diners to Washington, saw a video named something like “why businesses is not taught in high school.” Lots of reasons, but long, short, they claim we need basics and can get that info from college or family later in life, even though parents have been pushing for it for years.
But they’ll teach your child what semen tastes like 😂 thanks to our comatose president. Yep if you have an eject button, now’s the time to use it!
But it wouldn't make the masters money..
The trouble is, many schools do teach it but a lot of kids are like I was; just trying to blow through school to get done, and not to learn. You get down the road a ways and realized you wish you had paid attention better!
Sounds like the banks would fall apart if we all knew how to protect ourselves financially.
This is so eye opening. We are making the banks richer while we struggle. Thanks for this.
These are fantastic takes, I feel exceptionally lucky I started investing in my early 30s and moved from an average lifestyle to earning over 34k each month through consistently compounding my income via assets to create more cash flow. I grew to a 7 figure well-diversified portfolio knowing where to focus having exposure to different prolific investments mainly savings account, stocks, bonds and high yield dividend funds. Forever grateful to my adviser Gregory Thomas Patchak. Passive income is mandatory for building long term wealth and ever since I met him, my life has taken a positive turn because of the passive income through his knowledge and ideas, which are crucial for succeeding against all odds in this area of online commerce. I'm happy that I was able to contact him earlier this year.
Understanding personal finances and investing will most likely lead to greater financial independence. By being knowledgeable about money and investing, individuals can make informed decisions about how to save, spend, and invest their money.
__Although there are many of chances in the financial markets, I've learnt enough over the previous few years to be sceptical about that. Knowing where to focus is crucial. I admire you, Gregory Thomas Patchak.
Run a web search for his entire name
When I started properly monitoring my investments, I started to amass riches. The importance of professional mentoring cannot be understated. Without the right coaching, people are more likely to make errors and lose money. This is why I like Gregory Thomas Patchak as a partner since his strategies are exceptional and highly successful.
Oh complete bull crap
This is amazing info! I love your videos as they’re so informative and will help so many people not be taken advantage of.
I don’t get it 😕
For her example…
At 7.35% for every $10,000 borrowed you would pay about $62 per month in interest.
You CANNOT borrow your way out of debt.
Don’t let her confuse you 12>7.35.
If you borrow $10,000 and then borrow ANOTHER $10,000 you have to pay back $20,000 not $10,000. Borrowed money does not just magically disappear.
Thank you, this needs to be higher rated. If you have an extra 10,000 dollars to put into your loan do it directly, if you take it out of another loan at a higher interest rate you are just trading lower rates for higher rates. If it worked like that then why not take out 500,000 and pay the whole thing off?... because every dollar you pay with a 12% loan is now at 12%. If you have the money to pay 2 loans, just put the extra money on the mortgage. This scheme only works if you pay off the smaller loan faster than 30 years, but again you can just invest directly into your original loan instead.
Yeah she is talking sqiut. Some mortgage loans will only let you pay in a certain amount extra every year. So this would floor her plan. To be fair the whole thing is Robbin Peter to pay Paul
Idea. Very dumb l
Ya I laughed for half the video then realized it wasn't a parody. The stuff she espouses is sheer nonsense.
You guys didn't pay attention. A mortgage is an amortized loan. A line of credit is simple interest credit. An amortized loan is all interest up front. When you pay the $10,000 up front on your mortgage principal, that amount is not longer Subject to the amortized interest. Your paying the $10k on principal thereby saving you the 23 months of interest payments. Yes, you still have to pay the $10,000 loan, And your mortgage... do the math. It's about $1M cheaper and your mortgage is paid off in 5 to 7 years instead of 30yrs.
@@cwbywy9544 yes, you are correct on the interest aspect. However, you can only do her example 1 time. That's it. Once you put your income into the line of credit it is paid off, but you cannot pay off another 10k next month because you have monthly expenses of 8k. ... and you have to pay those expenses with that line of credit now. So to actually pay off the line of credit it would take approximately 5 months with that extra 2k cash flow. In 5 months you could pay another 10k... and start all over again. I'd like to see the math break down on what that would look like vs just paying an extra 2k every month on your loan. It will make more of a difference in the beginning of your loan vs the end or 15 years in. Here's where this can be sketchy for most people: you have to stay on budget like crazy! You cannot travel, go out to eat an extra night, hit that big sale you've been waiting on... you've got to stick to your budget to a T. Otherwise you end up in more debt. You have to do math, sit down, pay attention to your spending, track every red cent on a regular basis. Most people have trouble inputting their daily spending into a budget app let alone sitting down to double check their finances multiple times per month. So many people don't know themselves, will think this is a great idea... without understanding it fully, and then be in extreme debt and not know how to get out of it. First, budgeting should be taught.
Thank you, thank you, thank you!! You made this si clear and simple! We unfortunately refinanced after only 2 years into out mortgage because they convinced us it would be "worth it" for 1% less. We were stupid because we started our 30 years over again. Now we're 2 years into that payment and due to closing costs, we actually owe MORE than if we had just kept the mortgage we had. 😢 Well...fool me once, shame on you...believe me, they will not be fooling me twice!! I never understood this before. It's clear, they don't want you to understand this!😮
Thank you for helping me understand. You are a blessing.
Thank you for posting/making these videos!!!
Hi Vann this is AMAZING! My wife and I are going to start using this method right away. These are the things they should teach in school instead of putting children in debt!
They literally don’t. And they teach all the math she’s using. It’s not their fault you didn’t think to apply it like this.
Thank you so much, Jay! I am so glad that you have sense enough to see the method! The crazies, that answer things, like below, must be miserable in every single way. 😂😂I am excited for you!
You're welcome Vann lol 😆. That is indeed true, but I really don't pay certain things mind. I was raised that "it's not what you're called, but it's what you answer to." God bless you Vann and continue the good work. God bless.
So what if you can not pay your mortgage with the line of credit you are trying to pay down? Or at least if your bank is making it seem as tho you can’t pay a mortgage unless it’s with the cash advance, but that’s tapped out as well?
@@richardgil5733The goal isn't to pay your home mortgage off completely with this method. It's only to pay a portion like 10000. But if you're already tapped out on A-line of credit. Then pay that off 1st and look at things like your current interest rate or how much your home is worth because the math isn't always perfect in every situation. For some homes this method may end up costing you more.
I’ve got an idea, in this scenario how about you take that extra $2,000 every month and put it toward the principle? It’s like MAGIC! Your mortgage is now $476,000 and you didn’t just finance $10,000 at 12% interest when it used to be financed at 7.35%…..
Thank you so much!!first time I’ve ever heard this kind of knowledge!
You’re a blessing ❤
Thank God for this woman!!❤ 🙏🏾
I just sold a property in Portland and I'm thinking to put the cash in stocks, I know everyone is saying its ripe enough, but Is this a good time to buy stocks? How long until a full recovery? How are other people in the same markt raking in over $200k gains with months, I'm really just confused at this point
Yes, a good number of folks are raking in huge 6 figure gains in this downtrend, but such strategies are mostly successfully executed by folks with in depth market knowledge
Having an lnvestment advser is the best way to go about the market right now, especially for near-retirees, I've been in touch with a coach for a year now mostly because I lack the depth knowledge and mental fortitude to deal with these recurring market conditions, I nettd over $320K in profits so far, Its clear there's more to the market that we avg joes don't know that Investment advisors know.
How can I participate in this? I sincerely aspire to establish a secure financlal future and am eager to participate. Who is the driving force behind your success?
There are a lot of independent advisors you might look into. But i work with Viviana Marisa Coelho and I have been working together for nearly four years, and she is excellent. You could proceed with her if she satisfies your discretion. I endorse her.
No, stocks are a bad a idea.
Even though you make a $10k payment towards the principal of your mortgage, you do save on the interest because you decreased the principal of the balance, however, you are still required to pay the monthly mortgage payment on the house each month. And if you have that extra $10k to pay off your line of credit plus still pay your mortgage. The beauty is that the number of years paying for a mortgage lessens. You can ALSO make your monthly payment PLUS add extra $$ towards the principal also. Each month you are decreasing the principal. Many years ago, I once bought land on a 20 year loan. It was paid off in 8 years because that's what I did every month.
I did the same. But you have to be very careful. They started putting penalties for early pay off. Which ends up costing nearly the same, as if you didn't pay off early. Read all small print
This made the video much clearer! I thought she was comparing the 500,00 mortgage to a 10,000 LOC. Thank you!
Honestly, we need more people like you MYSTICFLIP if we had an army of people like you, we could stamp out these total loss in no time. I love that you are helping the victims, too it's ultra gratifying when you are to save people in real time like you do thanks 🙏🏻 for getting ours approved
There are great people in this world 🌎 may God continue to shower you with blessings 🙌 ❤
I love your videos! Thank you 🙏 I am trying to help my mother understand this. It’s so sad how many people in their 50s, 60s and 70s even that are in this situation 😢and this content helps educate 🎉
I put an extra $200/mo on my principle and it took my loan down so quickly. I was shocked. She’s talking about taking down the interest on the front end of the loan where the interest taken by the bank is highest. I shared this with my twins, who both own homes in the 2% range of interest thankfully. They got in when it was at that point, so grateful.
I worked in banking in the 80s. Interest rates on mortgages were between 17 and 21 percent.
I had no idea interest was so high back then!
@@soniarena5250houses were also less than $100k. Many places closer to $50k
how could people afford a house payment? or, what percent of their income was going to their house payment?
Awesome job! Thank you Christy!
Thank you for sharing your knowledge and candor. You're very helpful in helping me explain this to my wife.
I just found your channel This is my second video of yours. Wow where have you been for the last 10 years.
I’m definitely going to be sharing this with everyone I know and have them sharing it and continuing it down the line. Thank you so much for making this concert. I can’t wait to learn more !!
I agree with this, but just save 10k and put toward mortgage when you buy the house, dont pull out another loan
Thank you for educating us!!
I have never been taught anything about money except spending , and more than what I have most times. You simplify a concept that completely eludes me. Thank you very much
Spend less than you make,
2. Avoid debt at all times. Try to avoid a car payment. -yes, you can live without one. Keep that margin as large as you can so you can spend, Save, give.
Don't trust this crackpot video though. It is TERRIBLE advice and is misleading.
Yes, this concept also eludes people that fully understand money because it is seriously flawed and wrong.
exactly. Anyone who takes the advice in this video clearly doesn't know how math works. "Just times 4 by 2, and make it 8%!" with zero rationality behind it.
Talking about "if you pay 10k in one day" then it would also take off interest on your mortgage if you paid 10k up front on day 1, that's called a "down payment". @@Chasmodee1
There's some problems here. 1st of all, interest on a LOC is calculated per day. So paying it off once a month, then subsequently taking money out, you will still have interest payments.
Next, interest on a mortgage is amortized over a long period of time. You pay more interest at the beginning, but your equity pay-down actually increases every month. So yeah, 23 months for the 1st 10k, but the second 23 months will be much more than 10k.
This method sets you up to be constantly in debt.
With you on this. a bit confused how the above is working lol.
So, if this only 'works' if you pay off your LOC asap... isn't she just advocating for putting as much money down up front on your mortgage as you can?
I'm not sure how the LOC is doing anything but setting you up for more debt if you don't also take care of the LOC.......
It’s a pitch for her services, not really about great advice. Since when is a LOC just simple interest? The idea of paying off principal is great. The imaginary person has $2k/mo to spend after expenses. He could just allocate $1k to the principal interest free and $1k to savings/investment and earn interest, dividends, etc.
1. Borrow the least amount you can. 2. Put as much down as you can. 3. Then use a LOC to pay as much as you can. The video makes sense. @@t3g3b3
No it's not. You missed the whole video. 2 years of mortgage equates 63k in interest. 30 years of interest in an 10k LOC equates 36k. You are saving 30k even if you don't pay the LOC for 30 years.
God bless you I was just sitting here thinking how I need to put an hour a day in my financial education and I came through your video. Thank you so much for sharing you seem like a really smart lady. Thank you.❤
You just taught me a lesson in mortgages and finance I wish I knew years ago…thank you, thank you, thank you.
This is crazy! I never knew this, but I've never attempted to buy a house. But this is an eye-opener make me realize that I need to learn more about mortgages. And it doesn't make my credit cards or lines of credit look so bad after all. It makes him look like a useful tools that I can take advantage of if I ever need in the future.
This is complete bullshit. She's wrong. If you keep that mortgage all you do is pay it off a few years early. You are actually only saving the interest on those last few years, which is minimal. This is precisely why they front load the interest. Because most people refinance or sell between 7 to 11 years. It looks slick on paper, but its BS! Trust me I have a BS in finance, an MBA, and I've been a mortgage broker for 25 years. Also 7% is historically speaking a low interest rate. People only think it's high because the incompetent fools in government love to mettle in the economy and they manufactured ridiculously low rates after 2008 and created South American style inflation making everything you buy now significantly more expensive.
The problem today is not 7% interest but a house costing $500,000 that should only cost $100,000. Run the numbers on $100,000 @ 15% versus $500,000 @ 7%. The interest rate is rather meaningless. The bigger issue is the cost of the house, which like college tuition and healthcare, keeps skyrocketing because all 3 are heavily regulated & subsidized by the federal government.
The better thing to do is get on a budget, save enough for a bigger down payment, then get qualified for a 15 year mortgage, which has a lower interest rate, no mortgage insurance, and you pay it off in half the time or less if you stick to your budget and pay extra every month.
At the very least get on a budget and save enough for a 20% down payment to avoid mortgage insurance. Then stay on that budget and pay extra every month towards principal to pay your house off years ahead of time. Better still, put 20% down and get an interest only mortgage. That payment is less than a 30 year fixed, butt make the same payment as a 30 year fixed and you're paying the principal down much faster. If you can't wait, put down 10% but use an 80% 1st mortgage and a 10% second to avoid mortgagee insurance. Pay the 2nd off as quickly as possible then apply that money to your 1st mortgage every month and pay off your house in less than 20 years.
There are plenty of other ways to to save, but these are the easiest and most practical for most people. But the real problem is the government, inflation, and the public as well. American love to spend and few are on a budget. Few are saving.
If you really want to save and make a lot of money find a successful real estate investor and buy them lunch. Work for them. Do anything you can to learn from them. Learn how to use debt as leverage. Make mortgage debt a tool to wealth & freedom rather than be its slave, which is what the government and the elites want so they can control you.
I paid off my 210K house in 36 months using velocity banking. This stuff works. I used 2 LOC's and I was lucky to get two CC offers for 0% and .9% for 18 months each. So the whole time I put my living expenses on the CC's and made huge chunks with the LOC.
Thanks for sharing..
thanks for this I just did this put all my living expenses on 1 CC. A few other living I had to put on bank draft with a checking account. Which I hate but I had no choice. I will look into this when i start back house hunting next year.
Super insightful.
Thank you for the easy to follow format you’ve used.
🙏
I cannot thank you enough for this!!!! I wish I would’ve seen this sooner - the banks will no longer be fleecing me with a grin on their face, I’ll be smiling and WAVING that much sooner because of this and it’s so simple to do!!! Bless you and good fortune to you and yours!!!!
🤣🤣 Thank you!
We’ve been making additional payments on the principal with every payment since about year 3 or 4. Wish we could have done it sooner! Right now instead of having 9 years paid off, we are at year 20 paid off of a 30 year mortgage! When I finished paying off our car (early), I basically added that car payment amount into the mortgage. If we ever have an extremely tight financial month, we can just pay the normal payment, but so far that hasn’t happened. Since we are close to retirement, I want to be mortgage-free and therefore debt-free as soon as possible! Love your tips!
started doing same thing with addtl principal soon as I moved in (2020), best decision!
Doing the same with my car from day 1. I will be finished paying my 5 year loan in a little under 3 years.
Yeah I learned about this sooner. But better 3 years into a mortgage than wayyy more
Paid off our home last year. I didn't do it this way but just put huge amounts on the principal. I like her way better. Will be retiring soon and am glad the home is paid off. No more mortgage payments ever. Hope to get my kids to follow this method. We are currently debt free.
I don’t understand
As a soon-to-be retiree, keeping my 401k on track after a bumpy 2022 is a high goal. I've read about investors generating up to $250k ROI in this present sinking market; any suggestions for increasing my ROI before retirement would be greatly appreciated.
Yes, you are right. it's been a brisk tailwind for investors in US stocks over the decades but it is still a delicate season now, so I advise you to consider the guidance of a financial advisor.
oh! i never take this advises online seriously, but i checked CAMILLE up out of curiosity and i must say i am impressed by her Credentials. i emailed her already, waiting on her response
Ryan, do not listen to anyone online. Do your own research and find someone you trust locally face to face contact with license. God blessed💜🇺🇸🙏!
@@maximoon7077 People on line are people. Don't trust anyone until you have vetted them thogoughly
Interested to know if the tax write off on the non paid off property over 30 years will equal the interest paid on the loan over 30 years?
I love your videos!! Thank you for making them and helping to educate myself and others
The flipside to this interest payment is that inflation erodes the value money over 30 years. So at some point in the future, the 3500 in monthly payment is going to feel like 1500 or less (in terms of purchasing power). But I agree with the overall message here. 8% interest rate is nothing to mess around with.
That's true. However we live in the "now" society. Anything that you couldn't get or solve just now is not acceptable. The problem is finances are not compatible with that "now" mindset.
While you are right.
The kind of logic that you're using isn't applicable for first time buyers or people downsizing. It's good for property developers or houseflippers, they can still acquire and it will likely be fine in the long run...
If its your only property, 8% isn't sustainable.
I started a Roth IRA with $2000 in 1994 and never contributed anything. I now have over 10x that. Start saving while you are young!
Thats all fine and dandy if i could afford to pay a line of credit 10k a month
if you can pay a line of credit 10k a month, you could simply pay your mortgage ahead by 10k a month. None of this woman's "logic" actually follows logic. She's doing cheap math tricks for those who can't pay attention to 3 columns at once. @@MaxStax88
Christy you rock! In 2 months time I have paid off all credit card debt. My car is next, then will pay off mortgage. Your techniques are simple and they make sense. This is the first time in my life that I am in control of my finances!!
Do not send extra money to speed up a car payment. You could wreck the car tomorrow & the insurance company will not give you anything more tham the depreciated value.
Thank you so much for sharing this video and your content.!!!
You have explained this better than anyone I've heard.
Well done, you gave a great informative platform for people... I have bought several homes with a 30 year mortgages and used thus trick to lower my payments... I also refinanced loans down 1.5% after having my initial loan for a few years to a 15 year loan with same payments. Currently I own several homes... keep teaching people how to get in a home... more people need the knowledge
Thank youuu! I would go crazy every time my family would refinance their home while looking at me crazy…now I shared your videos all the time specially to my youngsters so they don’t make the same mistake!
❤️🙏🏻
At the end of the month in this example, mortgage principle is reduced $490K, but 8K of expenses is owed on the LOC at 12% vs. If the 8K were in the mortgage balance it would have been at 7.35%. Now in month two, you could start paying down the 8K owed on the LOC. Assuming interest is calculated on the daily balance on both the mortgage and the LOC, wouldn’t it be better just to apply the 2K in disposable income to the principal on the mortgage each month?
What if there is an emergency ‼️
@@tosinpeter9466Will you either have an emergency fund or you don't contribute the additional to the principle You're not entitled to pay more than your monthly payment.
Correct, it’s a scam. You’d only save the difference in $500k vs $490k @ 7.35% while paying 12% on the other loan. If you have the money just follow one of the many accelerated payoff schedules, like one extra payment a year. On a 30 year you’ll see big savings similar to the numbers she is showing.
@@tosinpeter9466 Use the credit card or HELOC for an emergency. Again it’s an emergency so this is worst case scenario. Extra principal payments, not this velocity nonsense is the way to go
You can pay extra each month but you start with 2k. Her example you start with 10k. Every mth you put 2k extra on the principal. Her example you put 10k every 5 months on the principal. Her example you have a LOC/HELOC for emergency. Some people won't put the extra 2K on to the principal because they worry about having emergency money. So having a HELOC /LOC takes concern away. I hope this helps.
A $10,000 loan at 6% to be paid over a 12 month period costs you:
Payment each month: $860.66
Interest: 327.97
Total of: $10,327.97
That's if you get a normal loan.
You'll then have to still pay the mortgage on your house for that year.
So be careful with this as your mortgage payment still needs to be paid along with your loan payment.
This is so genius and I am thankful that I seen your video. Thank You!
Thanks for what you mean to do for us all. I’m so dumb with regard to finances.
Um, yeah - this is completely wrong. Here's the real math:
-It's true what she says about the interest paid for the a $500,000 loan. After 2 years, Principle left: $490,586. Interest paid: $69,818
HOWEVER - if you got a loan for $490,000 and a $10,000 LOC, here's the real math after 2 years...
-Principle left on the mortgage: $480,755. Interest paid: $68,422 (Just the mortgage)
-Principle left on the LOC: $10,000. Interest paid: $2,400
-So the TOTAL interest that you pay for this lady's method is $70,822 ($68422 + $2,400) which is $1,004 MORE than a traditional mortgage. You don't save any money, you spend MORE!
@@michaewelina7983 gotta love it. Even if you took out a LOC and paid that at the beginning of the month (lots of extra work btw) that still wouldn't result in a $69,000 savings. At most it would save you $500 or so of interest on the $10K that you reduced the mortgage by.
I was going to run the same math, but I came across this comment first. Nice work in explaining this method does not save nearly $70k in interest. The explanation in the video clearly ignores that the borrower is still paying interest (only slightly less) as part of the monthly payments in those 23 months.
You are adding value and setting people FREE thank you the Gems are dazzling 🙏🏾
@LionessSu I pray to GOD people are getting FREE! Thank you
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Obvious the Lord has chose you for such a time like this. 🙏🏾
Here's how I paid off my mortgage years early. When my equity equaled my remaining mortgage amount, I took out a HELOC and used the money to pay off my mortgage. Then I put every penny I had each week to pay down the HELOC. Since I wasn't paying amortized interest, it was straight forward. I watched my balance dwindle month after month.
Question I have $200k in equity i owe $145k but my interest rate is 2.67% if I take my equity out and pay off my house I will pay $145k to current interest rate