how to pay off your 30 year mortgage for less than five to seven years without making more money or cutting back on your money now . mortgage your 30-year mortgage absolutely sucks because you need to know what other strategies you need to pay for the mortgage and what you want to do with the debt acceleration strategy. Mortgage acceleration, velocity banking, debt acceleration, pill method There are so many different names that people use for velocity banking. use ad Earn up to 67 per cent interest on the bank and save you up to 67 per cent of the time. Offering your 30-year mortgage on your student loans or car loan credit cards or any other debt is just as good as any other debt. For this your mortgage and pay it off in the third and 30th interest and that’s what the goal is now. The first thing to do is to switch to your current mortgage or find a different strategy to get the right thing to do with your mortgage.
May sound innocent at 3% 4% 5% but let’s say you have a mortgage balance of $ 250,000 that’s our principal balance okay and let’s say you have an interest rate of 5% at 30% year amortization okay I’m gonna abbreviate that Do you really understand how much Gonna end up with a lot of people looking at the 5% like that? on a 30-year Amortization You’re Gonna actually end up close to almost double the amount so this is just a gonna be your interest and that’s your principal so you can do this calculation on an amortization calculator No Gimmick But If You Get A Twitter $ 50,000 Loan On Your mortgage 5% Interest 30-Year Average Amortized You’re Gonna Quote About $ 250,000 In Interest Alone Which Leaves You About $ 500,000 The 5% interest guys are compounding that it’s not just the 5% of the $ 250,000 that’s gonna be a compounded Another reason why I don’t want a mortgage, especially a 30-year mortgage, is for you to draw a chart for this Gonna Draw Amortiz The 30-year mark and I know that a lot of you guys are saying well 30 years of a long time Don’t have 30 years I am gonna be dead by the time that I pay off my mortgage well again our goal is to pay for our mortgage within five to seven years. Retirement may require you to take that extra cash flow and invest in real estate I don’t know what your goal is, but your goal in general is to pay off your 30-year mortgage.
I will raise your mortgage payment every month okay let’s say your mortgage payment is around $ 1,500 a month arbitrary number I know some of you guys have more in terms of Your Monthly Payment Some of you guys may have less than just a gonna throw a number out there for the sake of the price of your money. Roughly this line and this line okay this downward curve you guys are seeing here is the amount of interest that you’re paying gonna pay in the span of 30 years. About $ 1,200 a month In the beginning of your mortgage lifecycle, the vast majority of your monthly payments are going to be taken care of first. The ’30-year mark’ on getting your mortgage paid off first and then the end of your mortgage We want to pay our principal faster than we can afford to build our equity and wealth and become debt free with this problem.
A 30-year mortgage is pretty much the only thing that can happen to you when it comes to the right thing to do. Halfway mark so let’s say this is your 10-year mark I know it’s not quite half the mark but it’s just my drawing that is so great that you are going to get your 10-year mark and you’re starting to get more principal right The 30-year mark is getting more and more principal and you’re less interested now that the first thing that happens is that you have a bit more in common.The 10-year mark that you made is not really great for a single late payment, but for a great power and for that reason we want to give you a refinance rate. 5% interest rate to come down to our bank and our office and we’ll give you a file we’ll give you four point seven interest and we’ll give you a discount rate of two five percent interest So you can save money on interest or they may say that you are going to bring and bring down that $ 1,500 a month payment let’s refinance and bring you down to thirteen fifty a month saving you an extra $ 150 now here’s the truth guys and there A reason why they don’t want the bank’s refinance is that this part of the bank is doing what they want because they have less money than they do. When do you want to do it? More money on the principal When you start to accumulate more principal They want you to come in refinance for an additional $ 150 a month or more or less or they may convince you Barr let’s go and bring your rate down to four point seven now if you have to refinance and you have to go back to square one, you have to have a 30-year time clock that resets and you’re gonna have to pay.
They can continue to recycle and have more money and you have a greater balance. Something else that could happen is that the bank is not doing enough to make it profitable. Quite often at least here in the United States I know some of you guys are looking at Canada Australia England but what’s happening here in the United States is that there is a new statistics that Americans have a new job every three to five years or they may get fired fr If you have a new job and you need a new job, you may need a new job and you need to move and sell your house with a new one. The new mortgage do you have to continue to do the right thing? When you go and get a new mortgage you have to do the same thing over and over again for 30 years and you get 30 years and it resets your clock.
Refinance to get a lower rate or save that extra money on a monthly job or if you have to move to a new job career change your kids retire then you may have to downsize. The principal or equity you have to start building The 30-year mortgage over the odds are stacked against you guys and this is one of the biggest reasons why I’m not a big fan of mortgages if you have a 5% interest rate or not. Even with the 4% interest rate you have to close your double principal amount and you have this disadvantage of refinance because you have to move or you are persuaded by your banker. re-gonna save money on a good way to pay off and I know most of you guys don’t want to wait 30 years to pay off your loan and I can’t but luckily there’s a better strategy There is a whole new opportunity where you guys can take advantage of a debt free acceleration and you guys are going to be able to pay off your mortgage within one third of the time and have a lot of money. ‘m gonna introduce you to a new instrument that we gonna use a new opportunity instead of using a mortgage we gonna use something called a home My client’s credit is often abbreviated and it’s called HELOC okay it’s not Halleck we use gonna use a home equity line of credit to pay off your mortgage now A lot of the objections that say that the world would be better off with a higher interest rate variable than the equity line of credit and pay off our lower rate mortgage.
A mortgage versus versus your mortgage equity line is the first thing we want to do with the mortgage it’s closed and then basically what you do is make your monthly payment. To refinance your bank, you can not get any money back. I just like the word open Right now, you have a little more ease to open enemies that you can pay into the home equity line of credit and then reuse the principal of the home equity line of credit and then pay back. In fact, your credit card is a type of line of credit so the first thing we need to remember is that mortgage is a closed-ended and home equity line of credit. This is why we have the stuff called a home equity line of credit contrary to myth and the common belief that home equity line of credit can be fixed and variable as well as what’s often more common. The variable but there are banks that offer fixed-rate key locks that I’m not gonna talk about today, but there are a whole different rabbit hole that you can use when you compare these two things with a home equity line of credit. there’s a lot of d If you are going to give you a lot of time. Here’s your checking account and you can get your HELOC right here with the key lock and you can go ahead and pay cash into the home echo minecraft’s do a principal Payment of the entire My Home Equity line of credit and you can get a refinance process that you can only pay with the mortgage and other mortgage with other purposes.
This is the kind of mind guys and what I’m gonna put in a star. The HELOC is the most important part of this or that feature of the HELOC. Some people call it a simple interest but the average daily interest is another big big reason why this strategy works the way it does. But this is the only time y The average daily balance is equal to the value of a home equity line and the average daily balance is the amount of debt you have for that particular day. One hundred thousand dollars in our home equity line of credit today we have a set interest for today’s balance and tomorrow let’s say we have a completely different balance of our home equity line of credit. ll have balance went have have average have average average have specific average The daily balance is divided into 365 days due to the fact that it takes two daily balances How many days do we have a particular year’s interest rate that is equal to the average day’s interest rate? Three and sixty five times say that 5% interest is what the number is going to be. The key is to lock in the key and get to the front of the gonna show you a sort of real-life concept of how the strategy works. The key to locking the open-ended okay number is the interest rate on a calculated daily average balance Those two things are so good that you understand the way your strategy works and how you can apply the strategy to pay off your mortgage within five to seven years. You can go ahead and take your income and your savings and whatever money you have in your checking account. The average daily cash flow is so low that you still have access to the same money as income and savings for the future. So, what do you mean? ‘m actual You have two different versions of the first version: You have a mortgage and let’s say you have a mortgage of $ 200,000 and a balance okay. More than 30,000 feet of overview of a 30,000 foot overview, you’re gonna get a HELOC okay a second position let’s say we 25,000 dollar limit on home equity line of credit works Similar to your credit card you don’t get $ 25,000 up front you have a limit so you can use up to $ 25,000 to pay it off and pay it off again. re gonna do from here that we once h ave your V lock your mortgage $ 200,000 let’s say you got your checking account your big money is the first move that we are going to make that our We just gonna use $ 20,000 out of the $ 25,000 and we’re gonna do a principal payment against the mortgage now that we don’t incur more debt guys we just transfer one set of debt We have only used 20,000 a bit right and we have $ 200 of balance incurred in the HELOC So $ 180,000 plus 20,000 dollars is still $ 200,000 when we do not have the same amount of debt that we are still doing now.
The principal balance of the mortgage you have paid down Or mortgage which is now consequently on your mortgage, you should be able to save as many months as you can on. Somewhere about two to three years that you save just by doing that $ 20,000 chunk does make sense so now we have $ 20,000 debt here we do what we do here Here you go straight to the all of your money let’s say you have about five thousand dollars a month to put your money in. The account holder says that you have some extra money sitting here and put the same thing in your . n i get from people well if we take all our income and put in a home equity line of credit How can we pay our bills for the world How can we pay gonna pay diapers groceries gas go movie tickets how are you Gonna spend the money right if we throw all the money in there, we can’t get it back We’ll remember the guys We can get the money off the heel off So what are we gonna do? gas groceries for the right heel op right those diapers you can do it at the same time you still need to make your monthly mortgage payment You still have to make monthly payments to your mortgage to make sure you stay on top of your current daily balance. When you have access to that $ 5,000 of income, you have to take the $ 5,000 down and say “$ 20,000 in the balance.” the balance we have okay we gonna be subject That particular day is now for a lower interest amount but now you have all your expenses incurred at the same time. Growers at Your Home Equity Line of Credit Are You Gonna Stay at the Same Amount of Growth? chart format so it’s a little bit more easy to see mathematically so let me give you a seven-day example of a week’s worth of $ 20,000 balance and we bring it down by $ 5,000 $ 5,000 okay you guys see that so it brings down the balance daily balance I use the word Gonna just write the letter B in there and it’s gonna represent balance Our Balance Is Gonna Be $ 15,000 Okay The next day let’s say we spent hundreds of dollars on groceries or a gas or whatever you guys might be using so our new daily balance is fifteen thousand eight hundred okay that’s two day three I ‘m gonna actually have it all for seven days so I’m just gonna use it for three days but I think you guys will get it Dave three of us spend five hundred bucks on a car payment or whatever Bring our balance back up to fifteen thousand six hundred now if I do the math on the side of things that say let’s say our interest is 5 percent or let’s make it a little more realistic 6 percent interest on this line of credit actually grab my accommodator The numbers and the interest on our calculator out so we have got fifteen thousand dollars as our daily balance times or I should divide this by 365 okay times point zero six which is our interest rate The two days and 46 cents of the next day we incurred a balance increase of hundreds of dollars so that I would take the gonna take fifteen thousand one hundred divided by 365 days.
The interest went up to two dollars and forty eight cents so you guys get the idea that every day the interest is changing but what if we kept the balance at $ 20,000 two day three day four day five days six six right $ 2 I’m sorry I should have more than two dollars and 46 cents you would actually have $ 20,000 divided by 365 time 0.06 If you would like to have three dollars and 28 cents as long as you take care of that balance of $ 20,000 but you can see why that balance is down to $ 15,000 using all your income, we’ll save that. Dolls About Dollars And Couple Cents Right Now It’s Not That Much Saving I Know That It Is A Lot Of Dollars That Sound A LOT But If It Increases In Multiple Days And It Compounds You’re Gonna End Up With A Lot Of Interest Two Hundred Thousand Dollar Balance Using the same example is the best example of using two hundred thousand dollar balance. We’re Gonna Do This is the first position key lock strategy we have to replace the entire mortgage with a HELOC so you’re replacing your mortgage you’re essentially the same thing Lock your key .