How Can I Pay My Mortgage Off FASTER??
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- Опубликовано: 1 июн 2024
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When I went to my credit union 10 years ago to get a HELOC, they said "well you already have a mortgage, so we can give you a line of $X". I said to go ask the underwriter if the credit union wouldn't rather be in first position. Just give me a bigger line and pay off the mortgage. I was approved the next day and started velocity banking the next month. Sometimes the banks can't even think outside the box.
@mariannaryan456 Does this mean that your mortgage wasnt with the credit union?
I have to learn how to do this. I didnt even know that you could get a HELOC for more than your current equity. I had to replay the video to notice this.
To pay off a mortgage in 7.5yrs seems mind-blowingly impossible when we're suffocating in debt. We've been lied to about how to go about financial things in our lives. My parents were "responsible" and did things the same way we were all first taught, they amassed almost a million through tremendous hard work and sacrific by their retirement age. Imagine what they could have done knowing this way.
This gives me hope that my family, a SAHM in me and my truck-driver husband can give our kids a life of promise and peace by not doing things "the same way."
Thank you!
Sister Vann, you are a blessing from on high.
For most of my adult life, I have always felt something is not right but you showed me and answered it for me.
My parents, teachers, and ministers have not enriched my life financially as you.
A great delusion has been cast on society, but the Lord is using you to help dispel the illusions that so many have about money and finances.
I have seen a great light.
As the Lord said, "And you shall know the truth and the truth shall make you FREE!!
Your teaching opens the path to financial freedom and hope for real!
One greater than Dave Ramsey and Suzie Orman has come.
Amen and Hallelujah!
I believe in buying a home with cash instead of mortgage. That might take more time saving but better than bank rip offs.
Yes however most people don’t have 5k let alone 200k to pay cash for a home.
@@YouAREyoubeYou 200K LOLOL we could get a closet in a crime neighborhood for that.
@@Hard_Qs reread the original comment then reread mine.
Will you be homeless while saving up for the house?
Thank you, you're a blessing and a inspiration. A few weeks ago, I was trying to figure out a faster way to pay off my consumer debt and then one of your videos showed up on my feed. At first, i didn't understand the process but now this process blows my mind. Instead of a HELOC, I'm using one (1of 3) of my cc with low interest rate as my LOC. So far, it's working out nicely. I love your channel and appreciate you for taking the time to inspire us all to live debt free.
What about the tax property...?
I started listening to you late 2023 and I am getting ready to embark on the process to purchase a home with my husband early 2024! I will be paying you a call/email for guidance and based on what I’ve observed thus far-I can already express my gratitude in advance! Great platform! Superb advice! Solid recommendations! Much Appreciated!
What happens if the bank freezes your HELOC? You’ll no longer be able to access the line of credit to pay expenses. This happened to many people in 2008/2009.
That was probably a once in a lifetime event. In that case you stop depositing your entire check and then deposit everything but your bill money.
What if worms packed shotguns ?
Worms wouldn't f with them.
These videos still blow my mind on so many levels
It’s because she’s wrong - you can’t pay off the HELOC in 7.5 years. I did the math myself and she’s way, way off (as often seems to happen). Short version: with a 10% interest only HELOC @ $199,642 paying $2,545/month takes nearly 11 years to pay off and costs roughly $120k in interest (in direct contrast to her claim that it’s paid off in 7 years).
The more challenging issue is that she hasn’t told us where the mortgage and the personal loans are in terms of original amounts or interest rates. But she treats the mortgage piece as though it’s the beginning of its lifespan, and it just can’t be: $1,400/month buys you about a $280k loan @ 4.5% (she imagines its a 3.5% loan, which makes the undisclosed problem here even worse). But they only owe $148k on the mortgage. So either their rate is waaaay higher (and they’re earlier in the life of their loan) or they’re more than halfway through paying off the mortgage.
You can’t just look at the HELOC math and determine whether it’s better or worse to do the HELOC until you know what you’d be paying under the current situation, and she never, never gives the audience the complete picture, whether she’s pushing high interest lines of credit to create the illusion that you can pay off your mortgage faster using them (spoiler: you can’t - if you can pay off a LOC you can just put that same money into your mortgage) or imagining that using a high rate, interest-only HELOC will help you pay off a mortgage even faster, it’s always an illusion. You cannot use more expensive borrowing techniques to pay things off faster than your current loan terms. You can (as this example shows) use debt to make sure you can pay your bills, but in order to do so something has to give: here, it’s almost certainly the case that if we had all the background information about this hypothetical couple’s actual debt, we’d find that an interest-only HELOC relieves their cashflow burden at the expense of stretching out their debt obligations over a longer period.
The reason it seems like magic is because she never mentions that these folks are already well through the lifespan of their mortgage. Imagine that (as she suggests), these folks have a 30 year loan at 3.5%. If so, they borrowed ~$315k and per the amortization schedule are 20 years into their mortgage (meaning that if they didn’t pay an extra dime towards their mortgage they’d pay if off in 10 years). So this borrowing plan is going to take more, not less time to pay off their mortgage which is the mathematical necessity of paying off lower interest debt with high interest debt. Her numbers are always an illusion and I hope folks get someone they trust to confirm that any of Vann’s ridiculous parlor tricks are worth doing themselves.
@@ericvinson4628sorry sir but you are incorrect relative to the scenario. The HELOC is a simple interest line of credit( like a credit card) while mortgages and loans are compound interest amortized and front loaded. Your example uses the minimum payment one would have IF he/she used it “normally”. This is how you came up with the 2k payment over 11 years. But you are missing one thing-their income. In her example the couple pays their total monthly income towards the loan, which satisfies the payment. Each month of them doing this they are lowering their heloc balance quicker because it’s what?-simple interest. Then after the statement date they are free to use the money however they choose, in this scenario they use 6k for expenses. Rinse and repeat. They will now use the heloc as their checking account until it’s paid off. I know it works because I’ve done it. I used my credit card NFCU though. They allow us a loc 30% of the limit(35k cc 10.5k loc) which we can just transfer the money directly in our checking account.
They could have gotten a 50k PLOC and accomplished the same thing just in a longer time frame.
I am just beyond grateful to have found your video about 2 months ago. Since then changing to velocity I have had more money my score has increased from low 600 to 700. I lived in fear everyday from not having money or running out of it. Didn't want to use my CCs because I would go more into debt. But understanding all this concept has been a life changer. Now I have more control. Thanks so much for opening our eyes. Love your penmanship and easy to follow explanations on scenarios.
Did the math. If they take the $2,435 cash flow and apply it to principal on the mortgage, the mortgage is paid off in 3 years 10 months. Even if they refinance @ 6.5% and it costs them $3k to roll in that other debt, the new mortgage is paid off in 5 years 5 months, not 7.5 years as in the HELOC. I get that the LOC makes it easy to apply that disposable income to the balance. I get that putting the income into the HELOC makes the payment. However, you're not saving any more interest. The amortization table changes to adapt to each monthly additional principal payment. How much (avg. daily balance) interest is paid on the HELOC in 7.5 years?
This is exactly what I needed to hear. Thank you!
Thank you you are providing a great service.
Thank you for all the time you take to help us financially.
😮definitely need to have a one on one with you! You are AWESOME!
Thank you for all you do. And providing this free service. I finally did it. I am debt free and I own my home at full Cash value. Breathe easy my friends- the time is coming for you too
@petersik WOW! That’s awesome! Good Job!!
Thank you so much God Bless You
I don’t know of any other way to buy house except with a mortgage unless you can pay in cash . But not many people can do that .
I have to watch your daily videos to keep me on track.
OK, I figured it out. Ima do whatever I want to do with that money because it's mine. That was a question that came out of me just waking up, watching this video and quickly subscribing. Thank you for these Videos.
Thank you foe this! I am so inspired. I have a second mortgage that I want to be rid of but I don't qualify for a HELOC or ploc, what can you do in this scenario?
I love watchn your videos! They inspire me. I always felt pretty hopeless because I’ve never been good at math. After addition my brain for math shut down! Can u plz do velocity bankn for sum1 on a fixed income getting 1 chk a month?
You are an amazing teacher, 👍
Thank you so much!
Thank you for your content!! We understand about 80%, what do u charge for a phone consultation ? Thank you!😊
This is great! Most mortgages have Escrow got Insurance and Taxes included. Can you do a similar scenario where you're paying your property taxes and Homeowners insurance from the heloc when they become due twice a year... it slows down the payoff, but I think it would still work.
Thank you
Thank you for your videos. How large of a Heloc do banks offer? $400K possible? my home has enough equity to be below the 80LTV
Hey Christy! Just been watching for a few days but loving your energy and videos. I’m based in the UK and I think we can access the same products, HELOC etc. but not sure. Can you help or do you have a colleague who is familiar with the UK financial services? Xxx
If we need to buy now, would it be better to buy down the interest rate (roughly $10K) or just do velocity banking?
Mind blown 🤯 😊😊
I wish I could understand this better . I’m so stressed out. 😭😔
I see a lot of videos, including yours, suggesting a HELOC or Personal Loan to start this off and sure, I agree. However, I cannot get a HELOC because I have a low score due to my credit cards being maxed. The usage is at 98%. My income is great, my payments are met, but I am stuck in the cycle. I also have a VA loan on my mortgage which I understand blocks me from a HELOC, is that true? What's your suggestion for low score due to high usage leading to no loan approval?
Can you recommend a bank that will give someone a heloc with this kind of dti?
Hi Christie. I love these scenarios. But could you please include what the original HELOC monthly payment is? Thanks.
You’re satisfying the heloc mthly pmt when you transfer your income to the heloc every month.
@@ReynaDPerez Yes. I realize that. But I want to know how much that minimum monthly payment is.
Yeah I guess that would be good to know in case of a shtf lose ur job scenario or injury...like if its a ridiculous high payment u risk losing ur house right?
you must have equity and income for this to work. if you've recently purchased you must wait to get enough equity for a HELIC correct?
Hi Christy! Can you also share a way for folks who can't get a HELOC or PLOC also when you do these? In the meantime?
Also, I can not find a HELOC that has a fixed rate and not a variable, any suggestions
✨ I’m looking to apply these methods not only to pay off debt, but to acquire whole bitcoin. If you could do a video on this would be awesome.
I do not understand first you have to have a mortgage anyway in order to get a HELOC? Is it correct? Or you can get a HELOC anyway?
How can you do this when your amount remaining on your home is more than the approved HELOC?
What do you mean the interest comes out of equity? Doesn't the interest subtract from the cashflow?
Yes, the way she pitches all of this is incredibly deceptive and every time I’ve checked her math there are at least two problems: (1) she almost always makes math errors in her demonstrated calculations. She’s done that here because she said the buyers would pay off this HELOC in 7.5 years but it’s actually more like 11. And she never tells us where these folks are in the life of the debts they have. The mortgage is the most egregious since if they’re paying 3.5% and only have a $1,400/month mortgage, they borrowed somewhere around $310-$315k and are ~20 years into the life of their mortgage. So her plan (as is always the mathematical requirement) can’t pay off a lower rate debt with high rate faster than the current plan; instead, it takes more time. It does do one thing for these folks which is gets them cash flow positive, but again at the expense of paying off the debts in more time than the current situation, not less. She’ll never be able to give the complete picture showing that high interest debt of any shape or form can help pay off lower interest debt faster. There’s always a catch, she just never provides that information to the viewers and in so doing does a severe disservice to her audience who clearly trust her.
I am so happy I found your channel! ❤
My wife and I are planning to buy our first house before this July, and would love to reach out to you to better understand this concept so we can be in a winning position as it relates to our mortgage. Please let us know the best way to make contact with you. Thank you 🙂😀
❤️ My pleasure! VANNtasticfinances.com
I’m BRAND NEW here and love what I’m hearing. Is there a way to ask someone questions about my specific situation?
Hi @haleeroberts9838 … please ask!
Need more info
Right now we have poor credit around 515 is there anything we can do I've called two companies and they won't finance a heloc for us any suggestions
Exactly how many different kinds of loans does a bank have ?
"Smart Fund" ..... HEH-HEH.....good one !!!!
If you pay off your 1st lien mortgage, does a second lien heloc become the 1st lien?
How do we set this up with our bank
Great video as usual..... But I have a question.... What do you have against beans and rice??? LOL🤣🤣
Would you transfer'pay off' a signature loan at 16% with a cash advance on the credit card at 30% ?
This transfer will also max out the credit card.
Are heloc loans deductable on taxes?
how do you do this with a house that is 1 year into loan 680k house ? these numbers dont seem to work here in CA
I think I asked this earlier. I owe 500k mort. No debt and in theory of velocity paid down Total of 250k in cc debt and another property w a mort loan and used my own cash to do that to become debt free, now my cash flow is less so I'm trying to figure out how to build back my cash flow. I'm debating to use the line to pay down the 500k mort 2.25% w line 100k@ 9% but also concerned about getting myself paid back first and building back my reserves. Advice??? Thank you.
I Would you advise? I have a mortgage is not Heloc, it's a 30 yr with increasing interest in set years, I have good credit now, but I don't make a lot of money, don't have cash flow, I don't pay all the bills with my paycheck, with this inflation my credit card is a mountain of debt. What can I do?
Hi Ma’am I just wanna ask about the heloc that paid the mortgage and 2 personal loans. And total balance of heloc that use is more than 199K. Did you mean that if we put our monthly income for example 5K on heloc and the heloc balance will be 194K did you mean that we will not gonna be charge 10% anymore of that 194K?
How much interest in total for that Heloc?
We have a HELOC with $25,000 with a $14,000 balance. The HELOC was based on a 10year old appraisal. Should we get a new appraisal and max out our ability on a HELOC. Basically, should we get an increase or just use the current HELOC?
If an interest only heloc with a 6.4% but it is almost maxed out, but you have a LOC intact of 25K at 11% , is it wise or even allowed to take from the LOC to pay off the Heloc some, split the salary income between the two accounts and do Velocity this way to pay off lots of debt??
Can you explain? They would not get a line of credit of $218k unless they owned the house outright. They would only get a credit for 90% LTV minus what they owe on the home (i.e. $68k)...
They can get $216k LTV on the $240k because it's a first lien HELOC. Meaning it takes up the first position and sweeps up the mortgage along with it.
@KeepDiggin22 what is LTV?
@@SocialWorkAuntieLoan-to-value
QUESTION, christy how do u have a c. Card for a small business like Etsy Shop for example AND personal c. Card payments to keep the personal and business expences separate for taxes? And pay them down with my one paycheck?
You need to get a separate business bank account. It’s important to keep personal and business expenses separate, even if the business is very small.
Hey Christie 👋 we are looking at getting a all in one heloc, my credit score is 750, cash flow a month is 2k, monthly income is 6k, no debt outside of 223k mortgage 5.125% 18 months in, house value is 440k, I have money in 401k's, IRA's and a couple whole life plans. My question is would the heloc be the best way to eat the mortgage down to avoid a lot of the amortization interest? Love your channel ❤️ love your enthusiasm, and 2024 will be a great year! All things work together for good, for those that love God.
If you put your your cash flow to the mortgage you would pay off mortgage in less than ten years figuring 24 k time ten years and it would probably be couple years less because each month you would have more money going to principal and less to interest.
I pulled the trigger on getting a 1st lein heloc for everything. It takes a couple months and customer service is still the horrible bank stereotype. But, it is absolutely worth it. My life style hasn't changed in any form and we've paying off so much on our house. Truly, worth it. I went with first savings bank of Indiana. Just call them and say your interested in their 1st lein heloc product. I worked with Alma. She was great, but don't forget, it can take a few months to get it going. Especially since the sweeping checking account happens after the heloc.
WORTH IT!🎉
@@LasVegasCollectibles thanks 😊
@SchnabelMcSchnabel why does even that doesn't believe in the velocity method seem to be so irritated that people do this. I understand your point, but just be supportive or go do your own thing. So many nay sayers. People always trying to make other people as miserable as they are. Thanks for the comment and saying the same thing everyone says, like a robot. Cheers
@SchnabelMcSchnabel I appreciate your concern for others. I understand you do not have a high risk tolerance. That doesn't mean you need to project your fears on others. If others understand the risks of any action they take in life, and they choose to take on that risk, then it is an option for people to be supportive or to be a naysayer. I am someone who supports others on their choices and I'm there if they need help should they fail. To deny a person's ambitions or to smother their passions is sad to me. It's like capitalism vs communism. Trying to make everyone the same vs cheering for the entrepreneurs and risk takers to do things differently. If we all do the same thing and pressure others to do the same thing, we might as well be north Korea.
Words of caution can also be supportive. Just my perspective. Good luck on your journey and I hope you are able to support others on theirs...even if it's different than yours.
Hi Christy. Ive been enjoying your channel on paying off the mortgage early.
My question is: Can I use a business line of credit to pay off my mortgage on a rental property and deduct the simple interest i spent while paying it off on my business taxes? Of course i would set up a business entity for the management of the rental property to do this right but hoping i could chunk this way instead of using my heloc which is interest only at 10.9 percent. it seems more expensive using my heloc to chunk the rental mortgage off early. Your thoughts?
Good question! I would like to here her thoughts on this also… my situation being a bit different but I also wondered if I could use my business LOC to chunk on the property my business runs out of
can the loan be called ?
I'm interested in doing a Heloc , How do I get in touch with you??
This sounds like great advice! Once you put the $10k lump sum into the mortgage, do you then keep paying the monthly mortgage amount from your LOC account? They still require a monthly payment right ?
Yes you keep making all monthly payments. If you are doing this correctly you should pay the loc balance down to 0 at which point you would make another 10k chunk payment. You would do this repeatedly until the mortgage and any other unwanted debts were wiped out. I will be starting this soon. After paying off my mortgage I intend to use the the same ploc to help start acquiring rental properties.
@@johnbamberg1632 if you put a $10,000 chunk payment towards your mortgage using the LOC then you are still responsible for your mortgage payments. At this point wouldn’t you have two payments instead of one? One for your regular mortgage payment and the second for the line of credit?
Ummm, what HELOC allows you that amount of money? None that I have seen. The heloc loan takes out the first mortgage from its amount so in your example you only have $92k available to borrow from, not 240k.
No I actually tried to delete my comment as I looked into this. Look up a first lien HELOC. It’s real
What she is saying is that you are taking out a “first position” HELOC, which means that the HELOC is replacing your mortgage. It’s in the first position so if you default they take your house. That’s the difference between a first position HELOC and a second position HELOC. With that in mind the house is valued at 240k so a 90% Loan to value (ltv) would be 216k. The bank knows that with a first position HELOC you’re paying off the existing mortgage, so her math is correct.
Is there anything I can use other than a Heloc. . I just bought a house 7 months ago. No equity
Can you show the math as to how you came up with 7.5 years that they will pay off the $200,000 HELOC.
She can’t - I did the math myself and it takes 128 months (10 years 8 months) to pay off a $199,642 debt. Over that time, you would pay over $125k in interest. She never tells us the entire picture in any of her videos because if she did, it would disprove her point. In this one, the key is the mortgage, which is allegedly at 3.5% with a balance of $148k and a monthly note of $1,400. But $1,400 buys about $310-$315k in a mortgage, meaning that this couple is 20+ years into the life of their mortgage. We don’t know the terms of the personal loans, or where they are in their lifespans, but the point always remains the same: anyone claiming you can pay off principal faster than your current plan by borrowing money at a *higher* interest rate is definitely not telling you the whole story. I wish there was a magic bullet but it’s incredible to me how willing people are to believe that they can use high interest debt as leverage over lower interest debt. That’s just not how math works.
Haha that’s why I asked the question because I’m getting what you got!
I got 7 years at 10% rate
How does this work in the UK? Mortgage loan 475k; 2,5k/month for mortgage payment; 5k income; 5k total spending. Thank you❤
WHAT HAPPENS IF THE BANK CALLS THE LOAN BACK BEFORE YOU ARE DONE ???
question.. when you do this and take the loc for paying your mortgage do you not have two payments to make ? a mortgage payment and a payment for your loc ? I feel like im missing a step somewhere
In this case they paid off the mortgage COMPLETELY. There are no more payments to be made. Also, there is no "monthly payment" on the HELOC because they simply treat it like thier checking account. The simply deposit their paycheck every week like they normally would to a checking account so there is no "monthly payment". The first weeks paycheck deposit is the "payment".
@@captbill279 gotcha, makes sense just for some reason still didn’t seem right lol
@@captbill279 I mean, paying the HELOC with your income every month should still mean you're paying interest on the remaining balance, right? You're just not receiving late fees or something.
I dont understand. Why are you not considering interest on heloc? That interest still needs to be paid. Bank will never give free money
All of those extra things we buy, that we really can do without, or at least delay buying, can save us so much $$$, when we don't buy any of that, and the savings of which we can put into our mortgage bill, and get that paid off much faster and better.❤❤❤
But what happens if you owe 400k on the home and get a 200k HELOC. You can't pay off the mortgage with that. So what happens then? You still have a house payment and HELOC payment?
So the balance left from income minus expenses is what's paying the line of credit off?
Yes, cash flow.
After you get your HELOC /PLOC flowing and going smoothly, what do you do with the thousands of dollars you have sitting in the banks/credit unions that your parents told you to save for emergencies?
Her theory is to use it all to pay down the HELOC… the HELOC becomes your emergency fund… and then when the HELOC is paid off and you have no more debt your income is easy to save because your expenses are minimal 🙌🏻
How do you buy a home, especially a first time home buyer, without getting a mortgage? We paid off our home in 2012 using the Dave Ramsey method, but I am amazed at how this works.
You get something called a first lien mortgage 👍
Doesn’t make any sense. The expenses at the left column is not the same as the right column. Do They have some extra expense? which shows 9220-1405-640-500=6675, imagine you have 9220 income, expenses are 1405 for mortgage, two personal loan 1140(which is pretty stupid to have with that kind of income) why? They should have 6675 left every month after the expenses. The cash flow is not -110. Is +6675. I would safe up for 10 month of that, then after 10 months I will have 66750 cash to pay off both personal loans. Then after that I got no personal loans left and will have 9220-1405=7815 every month. Every year you can pay 10-15 percent of your mortgage, that means within 3 years I’ll pay off my mortgage. Simple as that
Can you do the numbers on the interest for the heloc? Seems like the interest would be about $1650 the first month
@@SchnabelMcSchnabel You say that like she is trying to hide it. All you have to do is watch one of her many other videos instead of this short snapshot version. Not only does she count that interest, she OVER counts it by 20-30% so there goes the point you were attempting to make.
@@captbill279she is hiding it here and her calculation showing they pay this off in 7.5 years is WAY off. She didn’t show it in this video so she’s either hiding it or she’s just wrong.
@@captbill279Have you actually done the math? Her math here is objectively incorrect (the payoff is closer to 11 years than 7.5). Also, she never tells us what the age of the current mortgage is, and it makes a big difference. Look at the hypothetical: they pay $1,400 on $148k mortgage at 3.5%. But at 3.5%, $1,400 buys about a $310k mortgage. So they’re less than 10 years away from paying off this note already! What she does present is a way to get these folks cash flow positive by rearranging their debt, but you can’t get more cashflow and quicker payoffs using higher debt - this is the lie she pushes in just about every video I’ve seen and I’ve done the math. It doesn’t work here just like it doesn’t work to pay off a mortgage faster by rolling $10k lines of credit and paying them off every 6 months.
Do you have to get helock from the same mortgage company?
No. I got mine from another lender
Wow!
Hi, i am living in Canada (Quebec) can you help me with my morgage and a HELOC.Please comfirm and thank you from .Ana
I'm trying to follow along, but I don't think you're comparing apples to apples. For example, you have all disposable income going to pay down the HELOC, but you're not calculating what would happen if you took the same dollars and paid down the mortgage principal each month. I get that the HELOC provides flexibility for this situation, but I'm going to have to do the math. To pay down one kind of debt while not paying down the other, for comparison, seems like a one-sided presentation.
You did not calculate interest on the heloc yet you said you were figuring 10%. 10% of $216,000 is $21600 for the original amount which you didn't add. You did not add interest for subsequent balances. Your math is way off.
What credit score do I need for a 2nd position HELOC?
700 or more
Im almost getting it. So did we all majorly fuck up by getting a mortgage?
Lol
I showed your video to my sons and husband and we started an argument because they’re saying that you’re substituting a mortgage payment for a line of credit payment. But now, after watching this video again, is it my understanding that in the line of credit the only thing you pay monthly is the interest expense that the bank is charging, because if so, then I have to go back to my sons and show him where the benefit of the line of credit is versus the monthly payment. Please help me understand.
@crucible4silver There isn’t a payment for line of credit because the income going in satisfies payment. Only interest applies…
Is there anyway we can review my debt with heloc. I really wanna see how it will work for me. I still have some questions in my mind.
Q: if HELOC is fully paid off and your 15,000 is back in bank, what happens when you sell the house? Is the 15 yours?
Of course, the whole equity. More than 200k 😊😊😊
I have access to a HELOC. 110,000 mortgage balance with $90,000 balance from the HELOC available to use. I’m afraid the bank will make the HELOC due if we apply it to principle of the mortgage
Good question.
I’d suggest you call your bank and ask this question about paying the principal off, as it will give you peace of mind. However, the way I see it is that this home will be 💯 yours not the lenders so I don’t see why owning your house would disqualify from the HELOC; the requirement for the HELOC is that one has to have a home, right. In this case, you will just finally own it- all of it, and it is no longer the bank mortgage lender’s
Won't you be required to pay the interest, too? Not just the principle?
@@barbaracarbone4658 paying off the principle of the mortgage will change the amortization schedule. When you do that the amount of interest the bank was expecting to receive will change drastically. For example paying $90,000 to principle will bring the principle balance down $19,000. Which skip about 13 years forward in amortization schedule and saves about $53,000 interest for me.
@@beabchill the goal is to keep the HELOC as a revolving credit and not for it to become another loan. In this financial climate, the bank cancel the HELOC at before the 10year draw period, making it a standard loan
I like watching your videos, but this one got me a bit lost. They still owe 148K on the property, so how can they get 190k on a HELOC? If the property is appraised at 240K, they only have 92K in equity. This family won't be able to pay both loans. Maybe I am missing something, can you explain to me how they would get 200K on a HELOC with only 92K in equity?
I have the same question.
The HELOC is used to pay off the mortgage
The 1st lien HELOC replaces the original mortgage and if you appraise higher you qualify for some extra money.@@christina2233ray
Hi Christi I want to payoff mortgage without heloc my balance is 151000 at 2% will be paid off by 2036 my principal payment is $291.82 interest is $201.30 I would love to payoff in 6years
This is the second video I've watched of yours that makes the bank the problem. How many streaming services and Starbucks make up the example couples "expenses".
Get real people. Your mortgage isn't the issue. It's your spending on makeup, Starbucks, alcohol, restaurants. If it gets turned into pee or washed down the sink, it's not something you can buy if you're struggling.
Hello
can i have money in the bank my husband says we have this much money in the bank
i tell him yes and no it’s not free and clear we owe on a car we have enough to pay the car off that’s are one debt i want to be done with it
should i pay it off or is he right
Run the numbers together with him. How many years left? At what interest on what amount? How much interest will you pay in that time? If you pay it off, you would save the amount you would pay in interest. After paying off the car, then you would add that amount you were paying toward the car back toward your savings.
@@spreadthetruthinlove2540
thank you
I’m 4 years into my 1st lean HELOC as long as your cash flow positive… I’m telling you it works… it really is just math… 178k down to 91k
No, that’s not how math works. If you borrowed $178k at 10%, in four years you’d still owe ~$126k and wouldn’t be down to $91k until 6 yrs in. Even at 8% you’d still owe ~$121k and it would take 5.5 years to get to $91k. So either you’re paying way less in interest than is currently available or you’re just prepaying your note, which you could have done in the first place.
@@ericvinson4628 it is just math, and your reply has zero merit because your using hypothetical numbers and to add to my statement above my HELOC balance should be 48k but I purchased a car, camper and golf cart. It is just math…. Money goes in and money goes out. learn how a HELOC works, then learn about paycheck parking ✌️
Hello 👋 I am 6,500.00 from being debt free. My income average is $10,000.00 per month. I’m currently working on getting my credit to 700 across the board how do I go about getting a 300,000.00 home and property.
HELOK at $199,000 divide by 7.5 years (without interest) = $2211. per month... current mortgage is $1405. You have to pay back the HELOC principal and interest... you math ... something is missing.
Did you not hear her break down the "what if" cost of not doing her method at the end? Pay off the house and 60k + in loans in 7.5 years vs 20-25 years? What's missing is your math comprehension.
by applying your income to the HELOC, the principle payment is automatically satisfied.. only increase would be the interest.
@@kevindecaesar5864 Still its not FREE MONEY as it is explained. "Womens" math... always comes back to bite you.
@@cmscms123456It ain't fee. Although, it might as well be when you save on over a decade of interest. Large corporations have been using this method for years.
I cant get my score high no matter if pay every bill on time for over a year.
It’s not only about making payments on time. Credit scores are based on many factors but the one that affects the score the most is the open balances on the accounts (credit utilization) It is recommended to keep balances at not more than 30% of the limit, less is always better, but that should be the max if you want your score to go up. I hope this helps 😅
Thank you.
👍
So let me get this straight, your saying to have NOTHING in savings and put it all in the LOC?
Sounds about right.
Hello how can I reach you. Such a great idea
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