How I'm Going To Pay Off My $640,778.39 Mortgage | Chris Naugle feat.
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- Опубликовано: 28 авг 2024
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Food for thought: First: Take $30K from HELOC and pay to mortgage. Second: Deposit $10K/month (available income) in your IBC policy (uninterrupted compound interest for life). Third: Take a $10K policy loan (at minimum, pay interest every year - simple interest). Fourth: Apply $10K loan to HELOC. Fifth: Repeat steps 2-4 for two more months then repeat steps 1-4 for month 4……rinse & repeat. Yes, you will have a loan balance building in your IBC policy but the money you are saving in compound interest on your mortgage coupled with the compounding interest (which the balance grows by $10K/month), you are going to be way ahead!
I still have a lot to learn but I *think* (if I understand you correctly) this is what I was considering while watching. The more I learn about IBC, the more I feel like that's where my cashflow should go first and flow from. Thanks for sharing the idea.
Yes! Chris! That is beautiful! I almost cried when I heard your testimony that you & Christy will be teaching these financial concepts to our babies, in their school(s)! 🥰
Christy Vann, you have a heart of Gold!
The HELOC example looks like a leaky bucket - why not just make those payments directly to the mortgage.
I was thinking the same thing but I am new to this concept
I agree I wish someone would explain why not just pay directly. It may have to do with putting 20k down 3 months earlier so less compounding IDK
Because you have liquidity in the HELOc but you don’t have any liquidity when you put the payment into the mortgage
It takes a lot longer to pay down your mortgage when you just make extra payments each month. When you pay “chunks” into your mortgage it speeds up the payment schedule even faster. It’s about beating the schedule. I use the amortization schedule that I received at closing and I highlight all the payments that i SKIPPED just making 10k chunks. I already skipped 100k worth of interest just making three $10k chunks. ALSO you’re using your paycheck to pay down the Heloc. A heloc charges you interest by the day not month. So your paycheck is used to pay down the Heloc (even when you pull money back out of it to pay your bills). Just a side note I listen to Dave Ramsey to give me a kick in the butt when I start overspending only because every dollar you spend versus putting it towards your heloc is a wasted dollar. I hope this helps?
Caught on to Christy about six or seven months ago and actually signed up for a email consultation. Thanks to her I learned exactly how to pay off my debt and have done so. My kids are doing it, I've even shared her videos with coworkers and other family members.
This guy should have at least 500k subs
Shhh. If too many people embrace this, the banks will shut it down. It’s a life hack. Share it only with the ones you love.
Joe K taught me how to do this and it AMAZING!
Most of the videos recorded use a HELOC and most Americans do not have a HELOC. For whatever reason low credit score, not enough equity, etc… Love to implement this strategy or another for those of us that do not have a HELOC. Any suggestions or other options?
@jeremyhull7916 PLOCs...Personal Lines of Credit can be used to do same...
I'm doing velocity with a credit card currently because I am under-employed (just part time right now)
@VanntasticFinances credit scores are used to get PLOCs, correct?
@@jeremyhull7916Yes. Approximately 650+
in times of personal and systematic financial stress, HELOCs get cut or frozen. Happened with a bunch of banks in 2020. It can also happen if you are personally having a hard time making payments or late payments. Velocity banking says to not max out the credit limit so you have some cushion for emergencies, but banks tend to eliminate that cushion by cutting or freezing when you actually would need it.
Im motivated to become a Success Story you inspire me 💯
I'm trying to wrap my head around why not just make an extra 10k principal payment every month directly on the mortgage? How does going thru the heloc benefit?
My guess is to show the process to most of the rest of us. I imagine only a few have $10k extra each month but doing that process with our $500 or $1000 extra each month it works and the benefit of Heloc compared to just an extra payment is we can get that money right back if we needed it for an emergency (that Heloc is just like a credit card) and as soon as payment posts we have that much at least in available balance
It doesn’t make them any money. 🤣 Yes, it’s a scam.
I am still confused as to how it works with the MM.
Why a HELOC?
$10K a month x 66 months = $660k
same result without the HELOC
For his income level he could do that. For most of us, let's just say we paid an extra $1000 per month on our mortgage and after a year we had an emergency (car needs major repairs or have to get another car, need new washer and dryer, lost a job and new doesn't start till next month),... imagine going to the bank and saying you paid them an extra $12,000 last year on your mortgage so could they please give that back to take care of these unexpected things. However, the Heloc is like your really big credit card. Each month you pay your $1,000 into and 4 months in if need that new washer and dryer you can use that Heloc. In her scenario it was going to take 5 1/2 years (66 months),. Throw in a new car her or roof repair or whatever and then immediately start plan just like prior to the emergency and the 66 months might be 68 or 70 months. Still way better than 30 years
@@kenjenkins7183 totally missed the point
@@kenjenkins7183 so this kind of isn't useful if you either 1) keep a decent sized emergency fund in a hysa or something, or 2) practice IBC and keep XYZ minimum cash value unused. Because then you just direct the extra 1k or 10k or 500, whatever, into the mortgage directly, then you have either of those for emergencies.
Or, I don't see how this velocity banking thing as shown here works together with IBC. True, running monthly expenses thru your IBC policy won't work because insurance companies don't operate like checking accounts. But if you skip the part where your whole income goes in, and just do income minus monthly expenses, you can do all of this with just a policy loan. And policy loans are also simple interest, never have a minimum payment, and pay even less interest than beloc
Yes please answer, good point
@@briancroston1684 yup
I was trying to point out the obvious math
Its called the TIP -Total Interest Percentage and we all signed the page with that ginormous number on it while remembering that 3.75
So I can do the same thing with the cash value in my WL policy??
"Christy makes suggestions, You make the decision"
@astikennel EXACTLY! 🤣🤣🤣
if you put your monthly 10k cashflow into cash earning 5% aren’t you going to be way better off in 30 years or whatever?
I'm confused, don't you have WL policies? Wouldn't you just use those to payoff or finance the houses like Nelson Nash teaches?
Thanks for the information guys...one question. If i had an extra $3000/month, why wouldn't I just put that on my mortgage instead of putting $9000 every quarter through my HELOC? Again, thank you.
Becasue the HELOC is simple interest and your mortgage is amortized. By doing it with a HELOC you will pay less interest overall and pay down principal faster.
You can keep your cash flow in the line of credit unlike once it’s deposited into the home loan , it’s gone and you have no access.
@@siscovelilet’s say you have a $300k mortgage at 3.5%. You would be paying about $1300 a month. At the beginning of the loan, you are paying approximately $10k of interest per year. Let’s say you pay off that full mortgage with your HELOC at 9.25%. You now have a HELOC loan balance of $300k. For the first year, Every month you would be accruing interest of approximately $2k. Assuming you are making the same payments as your mortgage of around $1300 per month, you will be paying more in interest then you would with your mortgage. This is expected since your interest rate in your HELOC is so much higher.
Interest is interest. A higher rate on a HELOC is worse than a lower rate in a mortgage. And vice Versa. This whole concept only works if you are significant cash flow, and even then, you would be better off applying an extra payment to principal and having a HELOC with a zero balance but available if needed.
Mortgage is closed-ended. No ability to access the equity. HELOC give you 24/7 access to your equity. Even after you've got your home paid off.
What bank does she use for 1st position HELOCs? Would love to implement this in my finances.
1 st savings bank in Indiana
You can google credit unions or banks near me and check on their websites for their types of HELOCs The bank Christy mentioned is in Tennessee but some states like Texas don't allow 1st liens
@@astikennel Thank you!
@@juliem2538 Thank you!
But few people have 10k of cash flow monthly.
Simple interest vs. Amortization interest. I would go with simple interest.
The concept is interesting… but…
It has to be a pretty big mistake to pay down a 3.75% rate when you can earn 5% in a 5 year CD (or infinite banking)… if you had 640778 in cash and you could either pay it off or invest it for 30 years at 5%, you either pay $400k in interest over that time or invest it at 5% and earn 2 million dollars in interest earned. Why not just put 10k into another IBC policy now?
The scenario is that you already have a big amortized loan and a relatively small cash flow. Instead of throwing the cash flow directly at the loan, tapping into a HELOC and then throwing the cash flow THERE appears to be better terms for knocking down a debt.
@@ProCoderIO I get why that would make sense for a 7 or 8% mortgage, but not for 3.75% when cash gets a better return
@@ProCoderIO I’m not confused by how you use the heloc to pay down the loan, I’m confused about why you would pay down a 3.75% loan when cash yields 5% and infinite banking is also an option. Is it just a debt phobia perceived security thing or is there an actual financial benefit I’m not seeing?
Divide the interest into the monthly P & I payment. 😮
Christy isnt keen on flying Chris LOL
Truth!😂
Why not just a policy loan instead of a HELOC? It'll have a lower interest rate and you wouldn't be violating principle #4 (Dont do business with banks)
Biggest reason is less flexibility with a loan overall. Loans are one way streets into the banks coffers. You cant reuse money paid into a loan, but you can reuse a line of credit as you pay it down. And you actually would be violating principle #4 because the loan would be from a bank unless you loaned in from your cash value.
How do I get a hold of you
chrisnaugle.com there's a inquiry form :)
Do you pay the chunk specifically to the principal of your mortgage or does it matter?
Yes. If you don't tell the bank this is a principle only payment they will apply like you just sent in extra money early so they will put some to interest, some to principle
What’s a Heloc ?
Home Equity Line of Credit and a PLOC is a Personal Line of Credit
Jjaja😂😂 big Cat 😊😊
How did Christie con you on letting her give her VB spill BS? A con conning a con. 🤣
Can you elaborate on why it is a scam? I'm just asking, new to all this and trying to figure out how it works.