I started studying your lessons in December 2023, I believe it was Christy. At the time I had an LOC with a balance of $90,000. As of yesterday I had reduced the balance to $53,000 using your method. Today I had my bank transfer $40,000 from the LOC to my checking account in preparation to drop that $40K on to the loan of one of my rental properties, which will reduce the balance to $66K. I should be able to repeat that in 5-6 months and by the end of the year that property will be paid off. So I will pay off a $110K loan in 12 months. Wow. Your teachings are life changing and I can't thank you enough. If you come to the Florida panhandle, I would love to buy you and your family lunch.
@@bootstrap2979 Good deal, whereabouts are you located? Christy explains it so much better than I can, though. Just watch her videos about paying down mortgages using a line of credit, even at high interest rate. I am down to $8K left on the one rental property as of today.
22 years old and just discovered you yesterday… WOW my mind is blown. Didn’t teach me this in school! Can’t wait to watch all your vids and master this and use in real estate investing! Thank you so so much for your value. Downloading these videos too incase RUclips takes them down:)
VANN Rocks!!! ((Just a thought Christy, 🤔)) I see that some youtubers post a 30 minute countdown link.....Maybe you could start doing that before you "go LIVE"?? This way we can all plan to adjust our "busy" lives to jump on your live streams. Thanks for all you do girl !!!!!!🙏❤🤓
Thank you for the great content! I’m trying to understand the concept fully and I have two questions I’m struggling with: 1) If you have $3000/month of discretionary income already, then why not just save that in an account for 10 months, then pay that as a $30k chunk toward debt, then repeat? Wouldn’t that make more sense than doing the same thing with a LOC with interest? 2) If doing velocity with a LOC, what happens in the final month when you pay it off with all income? I mean, what money do you use in that month to pay bills?
1) it defeats the advantage of velocity banking to do that. All you are doing is manipulating the amount of interest you are paying on a daily/monthly basis. If you let your money sit in an account for 10 months that is 10 months worth of interest you paid for no reason. 2) I had the same thought originally. What ends up happening is you use the loc to pay your bills and continue the cycle of paying off the loc and only using what you need until the balance is low enough to pay off without needing it for the rest of your bills. Might take another 4 paychecks or so depending on the numbers you're working with. I wish she would explain that part better. If you really want to understand this open up an excel file and run the numbers using different scenarios. That's how I finally made this all make sense
(1) By paying off an LOC, you build your credit score and don't have to pay interest. (2) If you have no more debts to transfer in and pay off, you do a cash transfer of your LOC into your checking account. So if you have a $10K LOC, transfer $10K and you have that cash do to what you want with. Christy says she funds her whole life insurance policy (infinite banking) that way. Then repeat the cycle and pay that off, further building your credit score. It's not really debt, just a checking account, and you basically get access to big amounts of cash every few months or year or so (however long it takes to pay off the LOC using your income). I highly suggest looking into infinite banking. It's a game-changer for big purchases and not having to use the bank anymore.
@@BlueW80 Once the LOC is "paid off" you continue to use it and invest in Infinite Banking, look for one of Christy's videos with Chris Naugle. In the future, we all can be junior Rockefellers. Keeping your money moving and out of the hands of others saves and Makes you more money!
Hi I love your information, i have a question, i have multiple properties. Should i attack the lower amortized balances first by putting them into the HELOC to gain the cash flow, or should i chunk down the larger amortized loans first to bit off more interest.
@user-qc2dl4yt7f "smash" the notification bell...make sure it is on "ALL"....then make sure your youtube notifications are on for your phone, computer or any device. The system should send you a notification.
These videos are awesome! Just not sure if I’m too late to the game if I’m 12 years into my 30 year mortgage to pay it down using HELOC at 7.74%? Watching this video 03-06-24
I promise you are not to late. I am in a similar situation and I just ran the numbers for myself last night. Instead of paying off my mortgage in the next 22 years I can pay it off in 7 and save myself 10k roughly I'm interest. If you know your way around excel.. tab 1 I set up the amortization tab as if I continued as normal for the next 20 years. Then I added up the interest you would pay from now til then. On tab 2 I copied the table from tab 1. I also set up a table to track the loc. I ran the numbers to add chunk payments in the amort table and track the interest I would accrue on the loc in the same timeframe. Add the interest from the new amortization schedule and the loc table and compare to the first tab. You will see how much money you can save and also hiw FAST your .mortgage will get paid down.
Is it possible if one doesn’t have the necessary credit score to obtain a line of credit to instead get a secured loc from a loan and utilize that for both getting out of debt as well as building credit?
Don't get any kind of loan. Stay away from them. Right now we are using credit cards. We don't have the credit to get a PLOC. we are using several different cards rather than just one. You could get a secured credit card and start working on it that way. Your credit will go up as you continue using the card and paying on it. But stay far away from loans!
Love your channel. Forgive my ignorance, but how can I communicate more directly with you guys to possibly get some advice on my particular situation? After watching some of your videos, I am a perfect candidate for this. Please provide an email address so I can share my specific situations. Looking forward to communicating and possibly being a great example on your channel. Thank you for the incredible info!!!!🙂
I literally can't wrap my head around how anyone with $16K in monthly income after taxes would need help managing debt. I know we tend to spend what we earn, but dang! 1st world problems, for sure. 😕
All your shopping for is interest rates and fees associated with the account. Lower interest rate is better. Something with no transaction fees is a must. Heloc will give you the best rate but that is because your putting your house up as collateral if you should not make your payments for example. Personal lines of credit will have slightly higher rates but you have no collateral that can be seized. Essentially it's risk vs reward scenario. Loc is higher risk than heloc for the bank so rates will be higher. I would just start contacting banks and credit unions and see what they offer on both fronts. Like I said before compare the fees and interest rates and then decide what's best for your situation
I just got a HELOC with Figure Lending (they are partners with Movement Mortgage) I applied on Monday afternoon and I had the money in my account on Wednesday. Super fast and all online. Check them out. My interest is kind of high, but my credit score is under 700 and the HELOC was on an investment property. Fixed rate/5 yr draw at 12%. Good luck
HELOC - home equity line of credit, PLOC - personal line of credit, BLOC - business line of credit, credit card - line of credit. All good. Loans of any type - bad. Just FYI for anyone reading the comments :)
Heloc means you house is used as collateral for the line of credit. It means the bank can take your house if you default on paying your heloc off. A personal line of credit has no collateral backing which means the interest rate will be higher but you don't have any collateral that can be seized. Also I would categorize credit cards as good in a pinch but bad to use consistently.
I’m confused I just opened a LOC with my credit Union. They said you can’t pay out if your LOC only your checking. The way Christy is describing it you’re paying bills out of the LOC and that is not an option with my credit Union. There are no fees but I have to transfer money to checking, pay something like a debt, then when I get paid put my checks into the LOC? Is that right?
See if they will link your accounts so that you can pull out of your LOC and chunk into your checking account for bills but your income goes back into the LOC. Or, you could use a credit card, which is what I do. All my bills are paid on credit card, my HELOC pays off my credit card multiple times a month and all my income goes into my HELOC.
This video is difficult to understand because the base problem isn't explained beforehand. So, I can get the arithmetic, but not the actual issue the person you're talking to needs to solve. Also, you seem to be using a secondary board outside the screen with more information. Maybe it would help if you insert a text at the beginning, explaining the problem with all the base numbers, just a suggestion.
No & you're best to avoid a loan of any type. Better to work debt down first with a credit card which is a revolving line of credit & build your credit rating first (see her videos on this)
There are some other good RUclips channels that go into detail about how to raise your credit score. I've done some things they talked about and it helped a lot.
Can somebody explain how this is better than saving 10k, for example, yearly and make large payments yearly to pay off mortgage early? It seems great, I’m just hung up on the heloc loan payments being an extra monthly expense and it’s seems just as good to skip that and pay large chucks of savings in the mortgage loan instead.
This isn't magic it's balance manipulation. You could save 10k over the next 12 months and make a 10k payment at that time and that would be a good thing. However you just paid interest on your loan for 12 months rather than chunking it down monthly with all that money you were able to save. It would be smarter to make extra payments every month if the money is just sitting in a bank account. If you invest it for 12 months that could work in your favor but only if the return is good enough. That went little off topic but, why does velocity banking work better than what you said? Because it is allowing you to manipulate the amount of money interest is being charged on. When you use a heloc to make a chunk payment all you are doing is transferring the loan amount from your mortgage to your heloc. But helocs and other locs work different than a loan when interest is charged. Helocs charge interest on your average daily balance. So when you make the chunk payment of say 10k for example you will be charged interest on 10k for that day. If your paycheck gets paid to your loc on day 2 you are now only paying interest on the new balance which is less. If you can keep that balance lower for a week or two and then pay your bills using the heloc your balance will go back up but not to 10k (because your bills are lower than your paycheck). So then the cycle continues on you putting your entire paycheck to the heloc and paying bills from heloc until eventually the heloc is paid off. At which time you make another chunk payment. The entire time that is happening your only paying interest on a portion of the 10k whereas in your example your paying interest on the entire 10k that entire time. And if you really want to get to the bottom of this I suggest setting up your own excel file and running the numbers. There really is not argument it's just math. And to be honest I wouldn't do this unless I ran the numbers because if your margin changes you calculations will change. Also there's a point of diminishing returns with this. You should play around with the numbers to see when and how much your last chunk payment should be. Things to consider though are for this to work you have to make more money than you spend every month. And keep that margin fairly consistent. Much discipline is needed to avoid excess spending.
It's the difference between taking 30 years to pay off a mortgage versus 7. Her other videos show those numbers. The debt repayment is just ridiculously fast using an LOC as a checking account.
By paying in chunks of saved money, you still have to pay your mortgage bill every month. So you have two bills you're paying, the mortgage and then saving to pay off the mortgage in a big chunk. The LOC is the big chunk and by using it as a checking account, you get another big chunk again after a few months to a year doing nothing else. It's all about the amortization schedule - paying in big chunks moves you ahead on the schedule, skipping thousands in interest.
I want to talk to you. I have just under 100k mortgage. 18k in savings. I want to pay off my mortgage. I am 67 years old and have no retirement other than social security. No other Debt at this time. Any thoughts?
I'm sorry, I am not understanding how you make payments with your heloc account. I understand you get checks and a debit card to use. So for say groceries and gas would you use the debit and things like utilities and mortgage, credit cards, we would have to write checks from the heloc acct and send in the mail?
The part that confuses me about this method.... While doing all of this and paying interest for the line of credit, aren't you still paying your interest on the mortgage?
I believe the idea is for interest only loans where you aren't even paying towards the premium in reality, so get rid of that first. But I agree... I need to sit down and do the math, because this makes me uncomfortable.
How are so many people falling for this scam? If you want to pay a mortgage off faster just pay your extra income toward the principle. There is absolutely no need to get a HIGHER interest line of credit. This provides an additional expense with absolutely no benefit. Please don’t fall for this.
most mortgages and even some loans dont allow you to pay directly towards the principle any extra by default would be going to the intetest. mortgage interest is compounded vs ploc or heloc or bloc which are simple interest. Its NOT a scam if you DO the math for yourself you'll see the interest on a mortgage is exponentially higher over the same period of time than interest on a loc especially when youre putting all of your income into it each month, the interest wont ever be on the full amount of the loc...
Most Heloc are compounded daily versus mortgages which are compounded monthly, so that’s actually a much faster rate of compounding. Also, mortgages that don’t allow principal prepayment are mostly a thing of the past. The mortgage industry is highly competitive these days with easy online applications and the vast majority have no prepayment penalties. All you have to do is ask to make sure there aren’t any when you get the mortgage. If a mortgage doesn’t allow you to make prepayments, why would you be able to make prepayments with the HELOC?
@jamestolins919 Study some more..you’re going to delete this message when you realize how wrong you are with everything you just said. Have a nice day.
I started studying your lessons in December 2023, I believe it was Christy. At the time I had an LOC with a balance of $90,000. As of yesterday I had reduced the balance to $53,000 using your method. Today I had my bank transfer $40,000 from the LOC to my checking account in preparation to drop that $40K on to the loan of one of my rental properties, which will reduce the balance to $66K. I should be able to repeat that in 5-6 months and by the end of the year that property will be paid off. So I will pay off a $110K loan in 12 months. Wow.
Your teachings are life changing and I can't thank you enough. If you come to the Florida panhandle, I would love to buy you and your family lunch.
@Michaelking42 Wow! Thank you so much for sharing
Im in the florida panhandle, and want to try this but I need more explanation... I'll buy you lunch
@@bootstrap2979 Good deal, whereabouts are you located? Christy explains it so much better than I can, though. Just watch her videos about paying down mortgages using a line of credit, even at high interest rate. I am down to $8K left on the one rental property as of today.
@@bootstrap2979 How cool is that!!! I'm heading to Panama City this summer!😃
😊
22 years old and just discovered you yesterday… WOW my mind is blown. Didn’t teach me this in school! Can’t wait to watch all your vids and master this and use in real estate investing! Thank you so so much for your value. Downloading these videos too incase RUclips takes them down:)
@romansempire9237 Good idea! Thank you for watching!
Think about me im 43 and if i would have found her 20 years i would be rich lol well at least have my house paid off
Mrs Vann is definitely VannTASTIC💝
Same here brother
I wouldn't have had my line of credit closed in 2020 due to lack of payments if I knew this.
I just got approved for 20K LOC ❤
Fabulous Woman .. Really Love Hearing your Lectures and Demonstrations… Amazing
VANN Rocks!!! ((Just a thought Christy, 🤔)) I see that some youtubers post a 30 minute countdown link.....Maybe you could start doing that before you "go LIVE"??
This way we can all plan to adjust our "busy" lives to jump on your live streams.
Thanks for all you do girl !!!!!!🙏❤🤓
I will check it out! Thanks @Uncle_B_-Rad
Your amazing keep up the great work!
If I would’ve known this last year I would be chilling right now lol
Thank you for the great content! I’m trying to understand the concept fully and I have two questions I’m struggling with:
1) If you have $3000/month of discretionary income already, then why not just save that in an account for 10 months, then pay that as a $30k chunk toward debt, then repeat? Wouldn’t that make more sense than doing the same thing with a LOC with interest?
2) If doing velocity with a LOC, what happens in the final month when you pay it off with all income? I mean, what money do you use in that month to pay bills?
1) it defeats the advantage of velocity banking to do that. All you are doing is manipulating the amount of interest you are paying on a daily/monthly basis. If you let your money sit in an account for 10 months that is 10 months worth of interest you paid for no reason.
2) I had the same thought originally. What ends up happening is you use the loc to pay your bills and continue the cycle of paying off the loc and only using what you need until the balance is low enough to pay off without needing it for the rest of your bills. Might take another 4 paychecks or so depending on the numbers you're working with. I wish she would explain that part better.
If you really want to understand this open up an excel file and run the numbers using different scenarios. That's how I finally made this all make sense
Keep I mind that saving wouldn't build his credit either in long run. Money got to be to active
(1) By paying off an LOC, you build your credit score and don't have to pay interest. (2) If you have no more debts to transfer in and pay off, you do a cash transfer of your LOC into your checking account. So if you have a $10K LOC, transfer $10K and you have that cash do to what you want with. Christy says she funds her whole life insurance policy (infinite banking) that way. Then repeat the cycle and pay that off, further building your credit score. It's not really debt, just a checking account, and you basically get access to big amounts of cash every few months or year or so (however long it takes to pay off the LOC using your income). I highly suggest looking into infinite banking. It's a game-changer for big purchases and not having to use the bank anymore.
@@BlueW80 Once the LOC is "paid off" you continue to use it and invest in Infinite Banking, look for one of Christy's videos with Chris Naugle. In the future, we all can be junior Rockefellers. Keeping your money moving and out of the hands of others saves and Makes you more money!
How do you calculate the pay off date
Hi I love your information, i have a question, i have multiple properties. Should i attack the lower amortized balances first by putting them into the HELOC to gain the cash flow, or should i chunk down the larger amortized loans first to bit off more interest.
Miss vann please put up when u live I'll being trying to catch you live
@user-qc2dl4yt7f "smash" the notification bell...make sure it is on "ALL"....then make sure your youtube notifications are on for your phone, computer or any device.
The system should send you a notification.
@@Uncle_B_-Rad you can't trust that, I have a few of my favs set like that but I'll get the notifications 10 or 20 mins later.
Good Educational Content
These videos are awesome! Just not sure if I’m too late to the game if I’m 12 years into my 30 year mortgage to pay it down using HELOC at 7.74%? Watching this video 03-06-24
I promise you are not to late. I am in a similar situation and I just ran the numbers for myself last night. Instead of paying off my mortgage in the next 22 years I can pay it off in 7 and save myself 10k roughly I'm interest.
If you know your way around excel.. tab 1 I set up the amortization tab as if I continued as normal for the next 20 years. Then I added up the interest you would pay from now til then.
On tab 2 I copied the table from tab 1. I also set up a table to track the loc. I ran the numbers to add chunk payments in the amort table and track the interest I would accrue on the loc in the same timeframe. Add the interest from the new amortization schedule and the loc table and compare to the first tab. You will see how much money you can save and also hiw FAST your .mortgage will get paid down.
Is it possible if one doesn’t have the necessary credit score to obtain a line of credit to instead get a secured loc from a loan and utilize that for both getting out of debt as well as building credit?
Don't get any kind of loan. Stay away from them. Right now we are using credit cards. We don't have the credit to get a PLOC. we are using several different cards rather than just one. You could get a secured credit card and start working on it that way. Your credit will go up as you continue using the card and paying on it. But stay far away from loans!
Love your channel. Forgive my ignorance, but how can I communicate more directly with you guys to possibly get some advice on my particular situation? After watching some of your videos, I am a perfect candidate for this. Please provide an email address so I can share my specific situations. Looking forward to communicating and possibly being a great example on your channel. Thank you for the incredible info!!!!🙂
I literally can't wrap my head around how anyone with $16K in monthly income after taxes would need help managing debt. I know we tend to spend what we earn, but dang! 1st world problems, for sure. 😕
Your expenses tend to follow your income😊
Your expenses tend to follow your income😊
Trophy wife ? Lots of professional athletes and entertainers have this problem.
16k is the amount of credit you borrow
Hi I could really really use your advice and expertise please
After you do a couple of months calculation. How do figure the amount of time it will take without writing down 9 years of payments
There is so many heloc offered. Can you please do a video on which one is best for this scenario?
All your shopping for is interest rates and fees associated with the account.
Lower interest rate is better. Something with no transaction fees is a must.
Heloc will give you the best rate but that is because your putting your house up as collateral if you should not make your payments for example.
Personal lines of credit will have slightly higher rates but you have no collateral that can be seized.
Essentially it's risk vs reward scenario. Loc is higher risk than heloc for the bank so rates will be higher.
I would just start contacting banks and credit unions and see what they offer on both fronts. Like I said before compare the fees and interest rates and then decide what's best for your situation
@@BlueW80 thank you!
Look at all that “front loaded” interest from the HELOC :)
She is paying extra that goes to the premium. Those 16k payments cover the statement and part of the premium.
How do you get a heloc or a ploc with 690 score but dti is around 70% any website u recommend or bank
I just got a HELOC with Figure Lending (they are partners with Movement Mortgage) I applied on Monday afternoon and I had the money in my account on Wednesday. Super fast and all online. Check them out. My interest is kind of high, but my credit score is under 700 and the HELOC was on an investment property. Fixed rate/5 yr draw at 12%. Good luck
❤you channel. What's difference from heloc or line of credit? May need to get loan to reroof my 🏡
I'm doing that now with a heloc. It's is a line of credit.
HELOC - home equity line of credit, PLOC - personal line of credit, BLOC - business line of credit, credit card - line of credit. All good.
Loans of any type - bad. Just FYI for anyone reading the comments :)
Heloc means you house is used as collateral for the line of credit. It means the bank can take your house if you default on paying your heloc off.
A personal line of credit has no collateral backing which means the interest rate will be higher but you don't have any collateral that can be seized.
Also I would categorize credit cards as good in a pinch but bad to use consistently.
Hello, can we still join the current group session?
@JaysInTheKnow You can, but we have already completed the first class, so you would have to watch the recording.
I've purchased the mini course, was a little disappointed, because there are no forms nor anything to help me see how to move forward
I'm sorry... here is the worksheet to complete ...vanntasticfinances.com/resources
Can you still use this using Business Credit Cards at 0% interest?
I’m confused I just opened a LOC with my credit Union. They said you can’t pay out if your LOC only your checking. The way Christy is describing it you’re paying bills out of the LOC and that is not an option with my credit Union. There are no fees but I have to transfer money to checking, pay something like a debt, then when I get paid put my checks into the LOC? Is that right?
See if they will link your accounts so that you can pull out of your LOC and chunk into your checking account for bills but your income goes back into the LOC. Or, you could use a credit card, which is what I do. All my bills are paid on credit card, my HELOC pays off my credit card multiple times a month and all my income goes into my HELOC.
I have a question, when your working down the credit cards, do you recommend continuing the minimum payment?
@realweston Yes...
I have a HELOC and two ploc but the plocs are almost maxout. Did not touch HELOC yet. Of course some CC's ... Suggestions ?
I’m a bit confused, what is line of credit and how is it different and how do you apply one?
Have a mortgage.
This video is difficult to understand because the base problem isn't explained beforehand. So, I can get the arithmetic, but not the actual issue the person you're talking to needs to solve. Also, you seem to be using a secondary board outside the screen with more information. Maybe it would help if you insert a text at the beginning, explaining the problem with all the base numbers, just a suggestion.
Is 592 a good credit score for a personal loan⁉️
No
No
@@nickimillennium So I should wait until I get to 610 or above.. ok 🤔
No & you're best to avoid a loan of any type. Better to work debt down first with a credit card which is a revolving line of credit & build your credit rating first (see her videos on this)
There are some other good RUclips channels that go into detail about how to raise your credit score. I've done some things they talked about and it helped a lot.
I need another LOC soooo bad
Can somebody explain how this is better than saving 10k, for example, yearly and make large payments yearly to pay off mortgage early? It seems great, I’m just hung up on the heloc loan payments being an extra monthly expense and it’s seems just as good to skip that and pay large chucks of savings in the mortgage loan instead.
Correct. The heloc part is a scam and an unnecessary extra expense.
I mean if you put your income into the HELOC, you wont have a HELOC payment.
This isn't magic it's balance manipulation. You could save 10k over the next 12 months and make a 10k payment at that time and that would be a good thing. However you just paid interest on your loan for 12 months rather than chunking it down monthly with all that money you were able to save. It would be smarter to make extra payments every month if the money is just sitting in a bank account. If you invest it for 12 months that could work in your favor but only if the return is good enough.
That went little off topic but, why does velocity banking work better than what you said? Because it is allowing you to manipulate the amount of money interest is being charged on. When you use a heloc to make a chunk payment all you are doing is transferring the loan amount from your mortgage to your heloc. But helocs and other locs work different than a loan when interest is charged. Helocs charge interest on your average daily balance. So when you make the chunk payment of say 10k for example you will be charged interest on 10k for that day. If your paycheck gets paid to your loc on day 2 you are now only paying interest on the new balance which is less. If you can keep that balance lower for a week or two and then pay your bills using the heloc your balance will go back up but not to 10k (because your bills are lower than your paycheck). So then the cycle continues on you putting your entire paycheck to the heloc and paying bills from heloc until eventually the heloc is paid off. At which time you make another chunk payment. The entire time that is happening your only paying interest on a portion of the 10k whereas in your example your paying interest on the entire 10k that entire time.
And if you really want to get to the bottom of this I suggest setting up your own excel file and running the numbers. There really is not argument it's just math. And to be honest I wouldn't do this unless I ran the numbers because if your margin changes you calculations will change. Also there's a point of diminishing returns with this. You should play around with the numbers to see when and how much your last chunk payment should be.
Things to consider though are for this to work you have to make more money than you spend every month. And keep that margin fairly consistent. Much discipline is needed to avoid excess spending.
It's the difference between taking 30 years to pay off a mortgage versus 7. Her other videos show those numbers. The debt repayment is just ridiculously fast using an LOC as a checking account.
By paying in chunks of saved money, you still have to pay your mortgage bill every month. So you have two bills you're paying, the mortgage and then saving to pay off the mortgage in a big chunk. The LOC is the big chunk and by using it as a checking account, you get another big chunk again after a few months to a year doing nothing else. It's all about the amortization schedule - paying in big chunks moves you ahead on the schedule, skipping thousands in interest.
How do I get a line of credit?
Have assets.
Talk to your local credit unions. Make sure list of all the ones in your area and call them up.
I want to talk to you. I have just under 100k mortgage. 18k in savings. I want to pay off my mortgage. I am 67 years old and have no retirement other than social security. No other Debt at this time. Any thoughts?
I'm sorry, I am not understanding how you make payments with your heloc account. I understand you get checks and a debit card to use. So for say groceries and gas would you use the debit and things like utilities and mortgage, credit cards, we would have to write checks from the heloc acct and send in the mail?
You can also transfer money from the HELOC to you bank account for things you need to pay in cash. No need to write checks
The part that confuses me about this method.... While doing all of this and paying interest for the line of credit, aren't you still paying your interest on the mortgage?
I believe the idea is for interest only loans where you aren't even paying towards the premium in reality, so get rid of that first. But I agree... I need to sit down and do the math, because this makes me uncomfortable.
Trust your intuition
The interest will be less bc the amount is less. The mortgage interest is compounded, the HELOC interest is simple
👀
How are so many people falling for this scam? If you want to pay a mortgage off faster just pay your extra income toward the principle. There is absolutely no need to get a HIGHER interest line of credit. This provides an additional expense with absolutely no benefit. Please don’t fall for this.
most mortgages and even some loans dont allow you to pay directly towards the principle any extra by default would be going to the intetest. mortgage interest is compounded vs ploc or heloc or bloc which are simple interest. Its NOT a scam if you DO the math for yourself you'll see the interest on a mortgage is exponentially higher over the same period of time than interest on a loc especially when youre putting all of your income into it each month, the interest wont ever be on the full amount of the loc...
Most Heloc are compounded daily versus mortgages which are compounded monthly, so that’s actually a much faster rate of compounding. Also, mortgages that don’t allow principal prepayment are mostly a thing of the past. The mortgage industry is highly competitive these days with easy online applications and the vast majority have no prepayment penalties. All you have to do is ask to make sure there aren’t any when you get the mortgage.
If a mortgage doesn’t allow you to make prepayments, why would you be able to make prepayments with the HELOC?
@jamestolins919 Study some more..you’re going to delete this message when you realize how wrong you are with everything you just said. Have a nice day.
I notice that you didn’t refute anything that I said. Care to make any specific counter points?
Just watch her videos! She counters everything!!
O M G. I’m digging in! 🙏🏻🫶🙌💪