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.
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.
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!
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
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 wouldn't compare Christy to Suze Orman, who's a proven con artist (link below), or Dave Ramsey, who has a slightly different audience than Christy, and whose solutions differ from Christy's quite a bit, depending on the situation(s) Ramsey's listeners find themselves. Ramsey tells his listeners to basically live on rice 'n' beans until they pay off their debt, whereas Christy shows that there are other ways to quickly get rid of debt and still live a somewhat gracious lifestyle (depending, of course, on one's definition of "gracious"). While I have no problems with Dave Ramsey's teachings, I have to say I do prefer the method of debt elimination that Christy espouses (I've been familiar with the concept for years). Suze Orman's fraud: ruclips.net/video/GkePKT-Y7IQ/видео.html
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!
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.
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.
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?
Thank you! You're so blessed and I appreciate your blessings of wisdom and grace. You are very generous and kind to share such an amazing method to financial freedom. I will be forever grateful for your help and advice.
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.
Hi Christie, Thanks again for sharing these videos. I have a question, I have a 2nd Lein HELOC for $110,000 should I consider switching over to first position HELOC my credit score is 704. Your thoughts. Thanks
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?
So… “Most HELOC lenders will let you borrow up to 85% of the value of your home (minus what you owe), though some have higher or lower limits”. So these people’s home value is 240,000, their HELOC is 216,000 minus the 150,000 they owe. Really the bank would only let them use $66,000. Am I right on this?
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)...
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.
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.
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.
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.
@@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.
Pretty much 😅 but you have to be a fairly responsible person with good credit to get a PLOC. She does explain in some videos that you can use a credit card as your line of credit.
I have so many questions. What if you need a car in that 7-8 years you’re paying into the heloc? What if you use more of the money? You then meet the 10 years of the heloc? Can you move it to another heloc? Are you stuck? What happens?
She has other videos where you can just apply a $10k chunk toward the mortgage (payed out from the HELOC or PLOC) apply your income to the LOC, pay expenses out etc… then once you pay down that 10k, repeat…
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.
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
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.
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?
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.
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?
Okay, my question is for month one on the Heloc, where is the interest for that month on the 199,642? Wouldn’t it be an automatic monthly charge? I see the monthly expenses went down, but now they should have the interest on the Heloc trying to increase the balance each month, right? I calculated that on a 10% LOC it would be $1,663 which brings the expenses to $8,288.
Thanks for the video! One question, when you pay the big chunk on your mortgage with line of credit, does that push the due date on the loan forward far enough that you can pay off the credit? Or are you still making the monthly mortgage payment?
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 🙂😀
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?
This looks amazing but I'm not sure I'm understanding it, I'm still slightly confused. If I borrow $10k and pay that off my mortgage and then use the money I would have paid on my mortgage to pay off the $10k on credit card, don't I still have to pay the remaining mortgage payments during that 7 months as well, albeit slightly lower amount now? Or do you not have to pay your mortgage during that time as you have made an upfront payment?
Is it not dangerous to put a lien on your house? What happens to those people if their income is not coming for 2 months because they lost their jobs and need to find a new one?
I’m unsure where in this calculation you add back the interest that’s being accrued on the HELOC balance. They can’t take the full debt payment savings and apply to the principal when it’s accruing interest?
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?
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?
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?
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 just got a HELOC for $20,000 and used $19,000 on my 2.5% mortgage I only have Soc security and a small pension total of $3000 a month... can I afford to get a 1st lien HELOC? I still owe $155,000 on the mortgage plus the $16,000 on the HELOC and my house is worth about $275000 credit score of over 800 the HELOC is with a credit union
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?
Hi I am trying to get a loan for a adu cottage. My credit is really bad, and I have about 3,000 in credit cards, and I have a 25,000 personal loan. i have been using your program and I am getting better, but I wanted to see if there is something else I can do.
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.
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?
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 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.
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?
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
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.
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.
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!
What's a SAHM?
@@ApartmentKing66Stay at home mom
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!!
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 wouldn't compare Christy to Suze Orman, who's a proven con artist (link below), or Dave Ramsey, who has a slightly different audience than Christy, and whose solutions differ from Christy's quite a bit, depending on the situation(s) Ramsey's listeners find themselves. Ramsey tells his listeners to basically live on rice 'n' beans until they pay off their debt, whereas Christy shows that there are other ways to quickly get rid of debt and still live a somewhat gracious lifestyle (depending, of course, on one's definition of "gracious"). While I have no problems with Dave Ramsey's teachings, I have to say I do prefer the method of debt elimination that Christy espouses (I've been familiar with the concept for years).
Suze Orman's fraud: ruclips.net/video/GkePKT-Y7IQ/видео.html
@ApartmentKing66 Thank you for sharing!
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!
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.
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.
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?
Tell your kids to start saving cash to buy their homes, estimate price $450K 😂😂😂
There is no more 80K homes like our parents had it.
What about the tax property...?
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?
@@barbaracarbone4658it would be interest only payment. Average daily balance times the interest rate divided by 12.
Thank you! You're so blessed and I appreciate your blessings of wisdom and grace. You are very generous and kind to share such an amazing method to financial freedom. I will be forever grateful for your help and advice.
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.
Hi Christie, Thanks again for sharing these videos. I have a question, I have a 2nd Lein HELOC for $110,000 should I consider switching over to first position HELOC my credit score is 704. Your thoughts.
Thanks
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?
They are currently at negative cash flow before the HELOC. There would be no way to apply 2435 to the mortgage principal.
@@Lifeline5foldchurch BAM 💥
If you pay off your 1st lien mortgage, does a second lien heloc become the 1st lien?
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
So… “Most HELOC lenders will let you borrow up to 85% of the value of your home (minus what you owe), though some have higher or lower limits”. So these people’s home value is 240,000, their HELOC is 216,000 minus the 150,000 they owe. Really the bank would only let them use $66,000. Am I right on this?
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
@@SocialWorkAuntie loan to value
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.
😮definitely need to have a one on one with you! You are AWESOME!
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 .
Great video as usual..... But I have a question.... What do you have against beans and rice??? LOL🤣🤣
Boy. I have questions! Going to watch some more of your videos. Thanks!!
How much interest in total for that Heloc?
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.
Maybe I missed it but how much did they pay in interest on the HELOC?
my question too
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
@@tonyrodriguez8010 Personal line of credit (PLOC) apply 10k chunks to the mortgage and pay down using this method
Thank you so much I need to apply this method I have been paying interest for years.
You are an amazing teacher, 👍
Thank you so much!
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.
wait, so should we just do away with a checking account and always just use a line of credit?
Pretty much 😅 but you have to be a fairly responsible person with good credit to get a PLOC. She does explain in some videos that you can use a credit card as your line of credit.
I have so many questions. What if you need a car in that 7-8 years you’re paying into the heloc? What if you use more of the money? You then meet the 10 years of the heloc? Can you move it to another heloc? Are you stuck? What happens?
This is exactly what I needed to hear. Thank you!
Thank God i only have 3 payments on mortgage.
It works if we stayed disciplined.
Hello Christy please where I can apply for personal or Heloc I would like to try this amazing banking.Thank you so so much.
How can you do this when your amount remaining on your home is more than the approved HELOC?
She has other videos where you can just apply a $10k chunk toward the mortgage (payed out from the HELOC or PLOC) apply your income to the LOC, pay expenses out etc… then once you pay down that 10k, repeat…
Thank you for all the time you take to help us financially.
So where did you factor in the interest on the HELOC? Because at almost 200K it will carry an interest bearing balance, right??
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!
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.
How do I do it with no other bills but a mortgage. I need a way to pay this off fast
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
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.
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?
I have a VA loan and got a HELOC from CMG.
✨ 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.
How long after you buy your house can you get a HELOC?
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
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?
I dont understand. Why are you not considering interest on heloc? That interest still needs to be paid. Bank will never give free money
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
Okay, my question is for month one on the Heloc, where is the interest for that month on the 199,642? Wouldn’t it be an automatic monthly charge? I see the monthly expenses went down, but now they should have the interest on the Heloc trying to increase the balance each month, right? I calculated that on a 10% LOC it would be $1,663 which brings the expenses to $8,288.
hi Christy, how soon would you be able to apply for a HELOC after you buy the ppty?
Why are you not adding interest to be charged on Line of Credit ? Is it part of expense ?
Thanks for the video! One question, when you pay the big chunk on your mortgage with line of credit, does that push the due date on the loan forward far enough that you can pay off the credit? Or are you still making the monthly mortgage payment?
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 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
This looks amazing but I'm not sure I'm understanding it, I'm still slightly confused. If I borrow $10k and pay that off my mortgage and then use the money I would have paid on my mortgage to pay off the $10k on credit card, don't I still have to pay the remaining mortgage payments during that 7 months as well, albeit slightly lower amount now? Or do you not have to pay your mortgage during that time as you have made an upfront payment?
How can you pay off your debts if the banking institutions are not doing any type of LOC,HELOC etc?
Thank you you are providing a great service.
Thank you for your content!! We understand about 80%, what do u charge for a phone consultation ? Thank you!😊
Exactly how many different kinds of loans does a bank have ?
I have to watch your daily videos to keep me on track.
What do you do if the bank charges a fine if you pay off your mortgage?
What amortization calculator are you using to determine the LOC is paid off in 7.5 years?
What if you lost your job in the middle of the HELOC payment?
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
Is it not dangerous to put a lien on your house? What happens to those people if their income is not coming for 2 months because they lost their jobs and need to find a new one?
Im almost getting it. So did we all majorly fuck up by getting a mortgage?
Lol
So the balance left from income minus expenses is what's paying the line of credit off?
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
Once your mortgage and everything is paid off…do you close the HELOC or just keep using it forever
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?
I’m unsure where in this calculation you add back the interest that’s being accrued on the HELOC balance. They can’t take the full debt payment savings and apply to the principal when it’s accruing interest?
How do we set this up with our bank
Can you recommend a bank that will give someone a heloc with this kind of dti?
I'm interested in doing a Heloc , How do I get in touch with you??
Confusing
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?
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?
I wish I could understand this better . I’m so stressed out. 😭😔
Keep watching videos. You will get it!!!!!
Need more info
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?
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?
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?
WHAT HAPPENS IF THE BANK CALLS THE LOAN BACK BEFORE YOU ARE DONE ???
I just got a HELOC for $20,000 and used $19,000 on my 2.5% mortgage I only have Soc security and a small pension total of $3000 a month... can I afford to get a 1st lien HELOC? I still owe $155,000 on the mortgage plus the $16,000 on the HELOC and my house is worth about $275000 credit score of over 800 the HELOC is with a credit union
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?
Same question
Hi I am trying to get a loan for a adu cottage. My credit is really bad, and I have about 3,000 in credit cards, and I have a 25,000 personal loan. i have been using your program and I am getting better, but I wanted to see if there is something else I can do.
can the loan be called ?
Wow. Why are kids being taught how to count genders but not this!?!?!?! I wish I would've know this along time ago!!!!
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.
Are heloc loans deductable on taxes?
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.
If we need to buy now, would it be better to buy down the interest rate (roughly $10K) or just do velocity banking?
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.
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?
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
Mind blown 🤯 😊😊
is it wise to pay off all your lone ($140,000) in one bulk with HELOC or do it peace by peace?