The basic premise of this is that you are using a line of credit which has a yearly interest rate to pay off part of your mortgage which has an amortized interest rate. The mortgage has all the interest built in up front so for a 30 year mortgage for the first 10-15 years if you made default payments, the majority of your money is going to interest and not principle. The personal line of credit allows you to take that $10k and pay off $10k of the principle of your mortgage which in turn reduces the amount of amortized interest you would have paid on it. You still have to pay back the $10k from the personal line of credit but because the interest is based on a yearly rate your interest is much much lower and the payment is much lower. When she's talking about putting your income into the personal line of credit, she's saying take your paycheck (after taxes, deductions etc) and put the entirety toward paying off the loan, then use the loan as a revolving line of credit to pay your groceries, gas, utilities and other living expenses. You rinse and repeat this cycle until the personal line of credit is paid off, then you do it again to pay off another $10k chunk of your principle. Doing this can save hundreds of thousands of dollars in interest over the life of a 30 year loan.
@@graceandpanic9281 You use the line of credit for day to day expenses AFTER you put your pay check into it. You take the line of credit, apply 10k to the mortgage, put your entire pay check back into the line of credit paying off a portion or maybe all depending on how much you make, then use the remainder on expenses. Rinse repeat until the line of credit is paid off and you can take another 10k to apply to the mortgage.
@@zilvarro5766 It might take some longer than 5 months to save up the 10k, but yes, making even a single extra payment a year on your mortgage will reduce the overall interest you pay on it.
Isn’t she just showing us how we could do this today, not wait to “save up enough “ and also make a dent in our principal so immediately we are saving in interest?
Two additional comments to this wonderfully informative video: 1) Make sure your mortgage includes a clause that allows you to pay off the mortgage early 2) Make sure any extra payments you make are going towards the principal only
I think in this day in time, pre payment penalties may be the norm. Yes by all means make an effort to get a loan without them. Draw a big line through that paragraph with you initials 😂
Another option is you can take the extra $300/month payments and put it in a cd account or buy bonds at 5% interest. Then take that extra $ and pay off your home in 10 to 15 years
It is no longer normal to have prepayment penalties on mortgages in USA; you can call your lender to verify or review your mortgage docs. I always wrote a separate check with a note on it, ‘apply to principle only’ to pay off quickly. Question: how can you roll this forward every month or two? $10 k per month applied to principle….would pay off pretty fast. I realize all other bills have to be paid too, but in this case there seem so be an additional $2 k of free cash flow.
The simple math is this, the more you can put towards your home (principal balance) the less your interest will be, overall. The faster you pay down your balance of your home the more money you save. This information is incredibly valuable!
As a mathematician with an economic background. I would like to give the best secret for saving your money: Stop buying expensive crap you don't need, especially on credit!
@lilyanm-g3386 My home is paid for. However, you need a good down-payment on your new mortgage because more and more people are failing to pay their mortgage and have beenbthrown out!
In 2006, I bought my first house with a 6.375% 30 yr loan! First month I put another $4k from savings and had a HELOC of $11k, borrowed $6 k to pay down the principal, my checking account was connected to the HELOC so as I got paid I put most of it in the HELOC to pay it down as fast as I could so I could dump another $6k! Paid that house off in 9 years and saved over $100k in interest
My take away is that mortgages are typically “compounded” and lines of credit are “simple” interest. When it comes to paying debt, you end up paying significant less money for a simple interest loan even if the interest rates are higher. Compounded interest = interest charged on interest. I think I see why mortgages are considered “ highway” robery.
Yes but it's finding a bank that will give you a simple interest h e l o c. Many banks will give you a second option HELOC. So the structure of the HELOC matters.
There is no "interest on interest" with mortgages. It can only happen for a loan when you don't pay ANY principal, and you pay less than the charged interest. This only routinely happens with credit cards and similar forms of debt. If this happens routinely on a house, you'll be foreclosed. The 'problem' with mortgages is their long standard amortization schedule, but this is actually a good thing AS LONG AS you can use your cash flow for something better (like stocks). If you can't then you usually still have the option of paying extra principal on the mortgage (directly out of your paycheck, meaning 0 interest, not involving a LOC). Holding a drawn-down LOC for 30 years and holding a mortgage for 30 years work in virtually the exact same way. Similarly, if you paid off your mortgage in a year that would work the same way as paying off an LOC in a year.
Ah…I get it now. I have a LOC that accrues interest in the principle monthly. The yearly rate is 12%, coincidentally. Just watching how the interest is applied has taught me a lot. Now, I also have a student loan that compounds DAILY! I will never pay this off, unfortunately. However, just to give an example of compounding interest to everyone, I began with a $28k student loan. It is now over $70k.
I'm 54 and my wife and I are VERY worried about our future, gas and food prices rising daily. We have had our savings dwindle with the cost of living into the stratosphere, and we are finding it impossible to replace them. We can get by, but can't seem to get ahead. My condolences to anyone retiring in this crisis, 30 years nonstop just for a crooked system to take all you worked for.
I feel your pain mate, as a fellow retiree, I’d suggest you look into passive index fund investing and learn some more. For me, I had my share of ups and downs when I first started looking for a consistent passive income so I hired an expert advisor for aid, and following her advice, I poured $30k in value stocks and digital assets, Up to 200k so far and pretty sure I'm ready for whatever comes.
Comparing the 12% interest of $10k over 23 months to the 7% interest of $490k over the same period, and calling it a savings, is exceptionally backwards math. You note she never ran the calculations for $500k vs $490k on the mortgage. This scenario only works if you have $10k to pay the HELOC off immediately. If you have $10k, just pay it towards the lower interest mortgage. Using the Heloc as a checking account also does not work because the interest accrues daily. It is not like a credit card where if you pay it off by the end of the month, you won't pay interest. You pay interest from day one! In fact, you would be better off using a credit card as your checking account. Especially if you get points with cash back.
This lady is a complete moron. Takes out a $10,000 dollar equity and put the 10 grand on 500,000. It makes it 490 and thinks that the other loan of 10,000 just disappears. What a complete idiot.
If you have a conventional loan, and you house has appreciated by 80% call your bank and tell them you want to get rid of your PMI, they will send out an adjuster which you pay, and will determine the value of your home.
I understand this!!!! I NEED to do this!! Thank you so much!!! Oh man!!, I'm sick knowing how much I've spent on my house these many years and the balance just hardly moved!! THIEVES!!!!!! ..... they know what they're doing and will continue! We all need to LISTEN to you Vann!!! Thank you!! I'm going to begin this process!! ❤
_They are not so much as thieves.. they just didnt inform you and you didnt figure it out. As a matter of fact. If they block you from doing things you can do to help you or act like they dont know what you are talking about so that you forget about it and quit so that you can continue paying off the interest.. then you can call them thieves and scammers._
This is awesome truth. Thankyou! After loosing my home back in 2008 and doing years of renting, I bought a camper and moved on a piece of land. I have no debt and am free from the "home" mortgage scam. The only caveat is I live far out in the country so the county can't tell me what I can or can't do on my own land (Living in a RV/camper). Best decision.
I just discovered you today…the first video I watched was paying down debt without any extra money. That video popped up and couple times and I waived it off and then today I decided to watch it and I am flabbergasted…thank you for your wisdom and education!
I would say I don’t know how I find you on UA-cam, but I know better. My husband and I have been in prayer so that we get our credit scores up and our credit record in great shape so that we can purchase our forever home. It was no one but God that led me to *Pecuniary backdoors* . I thank God for this wisdom. Bless you.
You are AMAZING!!! I get so excited when you post a new video! We only have our mortgage left and have started our velocity banking journey a couple months ago thanks to you!!! We can’t wait to be 100% debt free!
This is complete bullshit. She's wrong. If you keep that mortgage all you do is pay it off a few years early. You are actually only saving the interest on those last few years, which is minimal. This is precisely why they front load the interest. Because most people refinance or sell between 7 to 11 years. It looks slick on paper, but its BS! Trust me I have a BS in finance, an MBA, and I've been a mortgage broker for 25 years. Also 7% is historically speaking a low interest rate. People only think it's high because the incompetent fools in government love to mettle in the economy and they manufactured ridiculously low rates after 2008 and created South American style inflation making everything you buy now significantly more expensive. The problem today is not 7% interest but a house costing $500,000 that should only cost $100,000. Run the numbers on $100,000 @ 15% versus $500,000 @ 7%. The interest rate is rather meaningless. The bigger issue is the cost of the house, which like college tuition and healthcare, keeps skyrocketing because all 3 are heavily regulated & subsidized by the federal government. The better thing to do is get on a budget, save enough for a bigger down payment, then get qualified for a 15 year mortgage, which has a lower interest rate, no mortgage insurance, and you pay it off in half the time or less if you stick to your budget and pay extra every month. At the very least get on a budget and save enough for a 20% down payment to avoid mortgage insurance. Then stay on that budget and pay extra every month towards principal to pay your house off years ahead of time. Better still, put 20% down and get an interest only mortgage. That payment is less than a 30 year fixed, butt make the same payment as a 30 year fixed and you're paying the principal down much faster. If you can't wait, put down 10% but use an 80% 1st mortgage and a 10% second to avoid mortgagee insurance. Pay the 2nd off as quickly as possible then apply that money to your 1st mortgage every month and pay off your house in less than 20 years. There are plenty of other ways to to save, but these are the easiest and most practical for most people. But the real problem is the government, inflation, and the public as well. American love to spend and few are on a budget. Few are saving. If you really want to save and make a lot of money find a successful real estate investor and buy them lunch. Work for them. Do anything you can to learn from them. Learn how to use debt as leverage. Make mortgage debt a tool to wealth & freedom rather than be its slave, which is what the government and the elites want so they can control you.
The current market/economy is unnecessarily tougher for boomers/senior citizens, I’m used to just buying and holding assets which doesn’t seem applicable to the current rollercoaster market plus inflation is catching up with my portfolio. I’m really worried about survival after retirement.
Boomers inherited the richest economy the world has ever seen, extracted everything they could from it, stole from the future, and now have the audacity to cry about not being able to steal from their grandkids anymore.😂
I so glad my dad explained this concept to me when i bought my house 20 years ago for 125k and put 75k down and paid it off in 5 years. That knowledge was worth 4 college degrees if not more.
My brother, you needed this! I already had ideas of raising my score. But I just found more ways because of this. *Pecuniary backdoors* are such a blessing, keep going frl!
Thank you *Strategic techies* so much for you’re advice as my credit score is 771 and wanting to increase it as much as possible as l’m just trying to look out for my future. I’ve subbed you.
I'm lucky, I'm past the saving mode and well into the spending mode. Retired 7 years ago. Work hard, save your money and retire early. It's a solid plan that is working great for me.
Thanks and Blessings from this new subscriber! So under the pretext of owning my own home, or homes over the many, many years of mortgage payments that I've been making since 1980, I never quite understood the thievery that I have allowed me and my family to be subjected to until you have so thoroughly and reasonably explained this to me. The feeling I am going through at this moment is nauseating, very, very nauseating and to think that I was told what a great deal I'm getting with a 30 year VA Loan. Well, the Good News is, one day I'll be leaving this place for my True Home, and JESUS paid that mortgage for me. Thank YOU JESUS! Thank you Christy Vann!
@@FimotivationGod provides for us. Jesus died on the cross for you and I as a living sacrifice. He has paid the ultimate price with his blood for our sins for you and I.-John's wife
I would say I don’t know how I find you on UA-cam, but I know better. My husband and I have been in prayer so that we get our credit scores up and our credit record in great shape so that we can purchase our forever home. It was no one but God that led me to *Pecuniary backdoors* . I thank God for this wisdom. Bless you.
Thank You so much for this video!! My husband and i are looking at buying a house, they offerd us a 10% intrest rate. And after watching your videos i know i will Never take out a mortgage. I am actually planing to save up enough money to buy a cheaper house in cash. Thank you for all your very helpful advice and knowledge!! 💖🙏 God bless
My brother, you needed this! I already had ideas of raising my score. But I just found more ways because of this. *Pecuniary backdoors* are such a blessing, keep going frl!
Thank you *Strategic techies* so much for you’re advice as my credit score is 771 and wanting to increase it as much as possible as l’m just trying to look out for my future. I’ve subbed you.
I have never been taught anything about money except spending , and more than what I have most times. You simplify a concept that completely eludes me. Thank you very much
Spend less than you make, 2. Avoid debt at all times. Try to avoid a car payment. -yes, you can live without one. Keep that margin as large as you can so you can spend, Save, give.
exactly. Anyone who takes the advice in this video clearly doesn't know how math works. "Just times 4 by 2, and make it 8%!" with zero rationality behind it. Talking about "if you pay 10k in one day" then it would also take off interest on your mortgage if you paid 10k up front on day 1, that's called a "down payment". @@Chasmodee1
Love the brutal honesty! Im so glad my hubby had the goal of paying off our mortgage early. I just turned 40 and we have been debt free for several years.
PLEASE SHARE how your doing this,ARE KIDS ARE IN TROUBLE WITH THESE SCAMMERS...TRUTHS NEED TOLD,AND HELP IN PROPER EDUCATING THEM...SCHOOLS ARE NOT ,AND WILL NOT‼️🙏
I’m poor, I rent, and I don’t know jack about finance. But this just made me want to learn! My late father was self taught at investing and was really good at it. He did quite well. But he never taught me. All his knowledge passed with him. But now I feel I can hope. That I can educate myself. And finally stop struggling. Thank you!
Don't trust this lady's advice though. She's full of crap and doesn't understand the math. She speaks with a lot of confidence, but she is completely wrong! I graduated with honors in business, with distinction from engineering, and have loved compound interest since high school (where I got 97% in math). Please don't trust this crackpot, for your own financial safety! I've reported this video to UA-cam for misinformation.
@@RoxanneJ yep! A friend highly recommends him! He’s on my list of to-dos after first making headway with depression and anxiety. I think a lot of people who don’t take care of themselves financially do so because of mental health issues. It’s hard to act in your own self interest when your mind is overwhelmed.
I am mind blown. I need a LOC immediately! I love the ending about "you don’t need a financial advisor, your mama or the bank" praise The Lord for this video.
It's amazing to me how there can be so many opinions about this. Just proves that some people "get it and some don't". My reality is that it was confusing at first, however, after several reruns and some other channels, I tried it. I paid off one rental home and will have another one paid off in a year. Easy peasy once you understand the difference between simple interest and compound interest. Thanks for your valuable teachings.
I just found your channel This is my second video of yours. Wow where have you been for the last 10 years. I’m definitely going to be sharing this with everyone I know and have them sharing it and continuing it down the line. Thank you so much for making this concert. I can’t wait to learn more !!
Thank youuu! I would go crazy every time my family would refinance their home while looking at me crazy…now I shared your videos all the time specially to my youngsters so they don’t make the same mistake!
Do not understand finances : Never been educated to : This lady should get a public award for what she just demonstrated and shared. The right financial education and guidance is a must for everyone ,no matter what their circumstances : Would save a lot of debt misery if it was taught in schools.
@@VanntasticFinanceskn Banks’s are some of the largest political diners to Washington, saw a video named something like “why businesses is not taught in high school.” Lots of reasons, but long, short, they claim we need basics and can get that info from college or family later in life, even though parents have been pushing for it for years. But they’ll teach your child what semen tastes like 😂 thanks to our comatose president. Yep if you have an eject button, now’s the time to use it!
The trouble is, many schools do teach it but a lot of kids are like I was; just trying to blow through school to get done, and not to learn. You get down the road a ways and realized you wish you had paid attention better!
I’ve been watching your videos over the past couple of days and this is the one that has changed my life. I’m going to destroy my mortgage with this method! Thank you so very much!!!
To understand this, i use a mortgage calculator online. Input the Property Price, Loan Tenure, Amount you will borrow and Interest Rate. You got it. Thank you so much for your time to make this vid. This is like divine enlightenment. Now i know how bank works. I’m sure it will help a lot of people out there.
I put an extra $200/mo on my principle and it took my loan down so quickly. I was shocked. She’s talking about taking down the interest on the front end of the loan where the interest taken by the bank is highest. I shared this with my twins, who both own homes in the 2% range of interest thankfully. They got in when it was at that point, so grateful.
My brother, you needed this! I already had ideas of raising my score. But I just found more ways because of this. *Pecuniary backdoors* are such a blessing, keep going frl!
I wish i learnt most of these principles about seven years ago. A lot of people have been trapped strongly in the matrix-- Go to school, get a job, and then slave your whole life. Many miss out on life-changing information that could have great effect on their finances. I played with the stock market sometime in 2020, and I was surprised at how well it turned out. I want to put in $90k more into the market. I heard people are making really great returns despite the downturn. Any recommendations?
Avert too-good-to-be-true con tricks. Consult a fiduciary counselor; these professionals are among the best in the business and offer individualized guidance to clients based on their risk tolerance. There are undesirable ones, but some with a solid track record can be excellent.
Yes, I've been in constant touch with a Financial Analyst for approximately 8 months. You know, these days it's really easy to buy into trending stocks, but the task is determining when to sell or keep. That's where my manager comes in, to help me with entry and exit points in the industries I'm engaged in. Can’t say I regret it, I’m 40% up in profits just in 5months with my initial capital of $160k.
How can one find a verifiable financial planner? I would not mind looking up the professional that helped you. I will be retiring in two years and I might need some management on my much larger portfolio. Don't want to take any chances.
My Financial adviser is ‘’Stephanie Kopp Meeks ’’ she’s highly qualified and experienced in the financial market. She has extensive knowledge of portfolio diversity and is considered an expert in the field. I recommend researching her credentials further. She has many years of experience and is a valuable resource for anyone looking to navigate the financial market...
Thank you for this tip. It was easy to find your coach. Did my due diligence on her before scheduling a phone call with her. She seems proficient considering her resume.!!
Making money is not the same as keeping it there is a reason why investments aren't well taught in schools, the examples you gave are well stationed, the market crisis gave me my first millions, people shy away from hard times, I embrace them.. well at least my advisor does lol.
It's important for investors to exercise caution with their exposure and be mindful of new purchases, particularly during times of inflation. It's advisable to seek the guidance of a professional or trusted advisor, as high yields in this economic climate can be challenging to navigate.
Monitoring my portfolio closely has been incredibly rewarding. In just the past two quarters, I've made an impressive $173k. It's fascinating to see how experienced traders can generate significant returns. This has definitely been a bold and exciting decision for me.
@@TomD226 Thank you for this tip. It was easy to find your coach. Did my due diligence on her before scheduling a phone call with her. She seems proficient considering her résumé.
Hi Vann this is AMAZING! My wife and I are going to start using this method right away. These are the things they should teach in school instead of putting children in debt!
Thank you so much, Jay! I am so glad that you have sense enough to see the method! The crazies, that answer things, like below, must be miserable in every single way. 😂😂I am excited for you!
You're welcome Vann lol 😆. That is indeed true, but I really don't pay certain things mind. I was raised that "it's not what you're called, but it's what you answer to." God bless you Vann and continue the good work. God bless.
So what if you can not pay your mortgage with the line of credit you are trying to pay down? Or at least if your bank is making it seem as tho you can’t pay a mortgage unless it’s with the cash advance, but that’s tapped out as well?
@@richardgil5733The goal isn't to pay your home mortgage off completely with this method. It's only to pay a portion like 10000. But if you're already tapped out on A-line of credit. Then pay that off 1st and look at things like your current interest rate or how much your home is worth because the math isn't always perfect in every situation. For some homes this method may end up costing you more.
I have shared this to everyone I know! Thankfully you got me started with velocity banking. I have paid off 20k in 9 months with my HELOC. No extra money from me. Bless you Sista!!! Thank you.
I cannot thank you enough for this!!!! I wish I would’ve seen this sooner - the banks will no longer be fleecing me with a grin on their face, I’ll be smiling and WAVING that much sooner because of this and it’s so simple to do!!! Bless you and good fortune to you and yours!!!!
Here's how I paid off my mortgage years early. When my equity equaled my remaining mortgage amount, I took out a HELOC and used the money to pay off my mortgage. Then I put every penny I had each week to pay down the HELOC. Since I wasn't paying amortized interest, it was straight forward. I watched my balance dwindle month after month.
Question I have $200k in equity i owe $145k but my interest rate is 2.67% if I take my equity out and pay off my house I will pay $145k to current interest rate
Thank you so much for all you do. I started this journey by watching nearly all your past videos as well as the new one. I have re-arranged my ways and will soon have almost 10,000 in credit cards gone in 6 months. I too have tried the snowball method but didn't get too far before I gave up.
@@dajoremarks9137 start by doing a budget. You need to account for every dollar coming in and going out. Don’t spend more than you make. Look up Dave Ramsey. He has a very good program without all the tricks.
This is complete bullshit. She's wrong. If you keep that mortgage all you do is pay it off a few years early. You are actually only saving the interest on those last few years, which is minimal. This is precisely why they front load the interest. Because most people refinance or sell between 7 to 11 years. It looks slick on paper, but its BS! Trust me I have a BS in finance, an MBA, and I've been a mortgage broker for 25 years. Also 7% is historically speaking a low interest rate. People only think it's high because the incompetent fools in government love to mettle in the economy and they manufactured ridiculously low rates after 2008 and created South American style inflation making everything you buy now significantly more expensive. The problem today is not 7% interest but a house costing $500,000 that should only cost $100,000. Run the numbers on $100,000 @ 15% versus $500,000 @ 7%. The interest rate is rather meaningless. The bigger issue is the cost of the house, which like college tuition and healthcare, keeps skyrocketing because all 3 are heavily regulated & subsidized by the federal government. The better thing to do is get on a budget, save enough for a bigger down payment, then get qualified for a 15 year mortgage, which has a lower interest rate, no mortgage insurance, and you pay it off in half the time or less if you stick to your budget and pay extra every month. At the very least get on a budget and save enough for a 20% down payment to avoid mortgage insurance. Then stay on that budget and pay extra every month towards principal to pay your house off years ahead of time. Better still, put 20% down and get an interest only mortgage. That payment is less than a 30 year fixed, butt make the same payment as a 30 year fixed and you're paying the principal down much faster. If you can't wait, put down 10% but use an 80% 1st mortgage and a 10% second to avoid mortgagee insurance. Pay the 2nd off as quickly as possible then apply that money to your 1st mortgage every month and pay off your house in less than 20 years. There are plenty of other ways to to save, but these are the easiest and most practical for most people. But the real problem is the government, inflation, and the public as well. American love to spend and few are on a budget. Few are saving. If you really want to save and make a lot of money find a successful real estate investor and buy them lunch. Work for them. Do anything you can to learn from them. Learn how to use debt as leverage. Make mortgage debt a tool to wealth & freedom rather than be its slave, which is what the government and the elites want so they can control you.
Honestly, we need more people like you MYSTICFLIP if we had an army of people like you, we could stamp out these total loss in no time. I love that you are helping the victims, too it's ultra gratifying when you are to save people in real time like you do thanks 🙏🏻 for getting ours approved
This is crazy! I never knew this, but I've never attempted to buy a house. But this is an eye-opener make me realize that I need to learn more about mortgages. And it doesn't make my credit cards or lines of credit look so bad after all. It makes him look like a useful tools that I can take advantage of if I ever need in the future.
This is complete bullshit. She's wrong. If you keep that mortgage all you do is pay it off a few years early. You are actually only saving the interest on those last few years, which is minimal. This is precisely why they front load the interest. Because most people refinance or sell between 7 to 11 years. It looks slick on paper, but its BS! Trust me I have a BS in finance, an MBA, and I've been a mortgage broker for 25 years. Also 7% is historically speaking a low interest rate. People only think it's high because the incompetent fools in government love to mettle in the economy and they manufactured ridiculously low rates after 2008 and created South American style inflation making everything you buy now significantly more expensive. The problem today is not 7% interest but a house costing $500,000 that should only cost $100,000. Run the numbers on $100,000 @ 15% versus $500,000 @ 7%. The interest rate is rather meaningless. The bigger issue is the cost of the house, which like college tuition and healthcare, keeps skyrocketing because all 3 are heavily regulated & subsidized by the federal government. The better thing to do is get on a budget, save enough for a bigger down payment, then get qualified for a 15 year mortgage, which has a lower interest rate, no mortgage insurance, and you pay it off in half the time or less if you stick to your budget and pay extra every month. At the very least get on a budget and save enough for a 20% down payment to avoid mortgage insurance. Then stay on that budget and pay extra every month towards principal to pay your house off years ahead of time. Better still, put 20% down and get an interest only mortgage. That payment is less than a 30 year fixed, butt make the same payment as a 30 year fixed and you're paying the principal down much faster. If you can't wait, put down 10% but use an 80% 1st mortgage and a 10% second to avoid mortgagee insurance. Pay the 2nd off as quickly as possible then apply that money to your 1st mortgage every month and pay off your house in less than 20 years. There are plenty of other ways to to save, but these are the easiest and most practical for most people. But the real problem is the government, inflation, and the public as well. American love to spend and few are on a budget. Few are saving. If you really want to save and make a lot of money find a successful real estate investor and buy them lunch. Work for them. Do anything you can to learn from them. Learn how to use debt as leverage. Make mortgage debt a tool to wealth & freedom rather than be its slave, which is what the government and the elites want so they can control you.
I am a CPA and have taken financial "freedom" courses - and I thought "oh, I will just click on this video and see if she has anything new to say." I am floored. Not only does the math work, but the psychology works. If I am having to borrow on my home LOC to buy something extra I don't need....let me tell you, that is a HUGE deterrent to buying things I dont need. LOVE THIS
Right? And this isn't a slight, but, what does that tell you about our education system? The comment above you is a mathematician and economist, and he's been scared into submission by the banks, lol. The banks you can understand their motivation at least, they're greedy, and free to make money, but why isn't this in every grade 12 classroom around the world? Personal debt is collective national debt. They make so many economy shaping decisions based on housing affordability and personal debt vs wages vs unemployment. If everyone was taught this, you think it would make for one helluva strong nation. The world is a scam. Peace
Too bad she is completely wrong. You’re still going to end up paying $60k or more in interest regardless if you borrow 10k. BECAUSE that interest charge is for the whole principle, it’s not for the measly little 10k.
Just to be clear, you are talking about two different types of loans where the interest is calculated totally different. A mortgage is amortized ( meaning you pay the interest up front) vs. a traditional loan like a LOC where you the interest is spread evenly. This is why when you pay that first mortgage payment of say $3800 and you look at the mortgage statement you see only $2 going toward the principle but by the 29th year of that mortgage when you make the same $3800 payment you see $3400 go to the principle. This is very different from a LOC or traditional loan where the interest is spread almost evenly throughout the life of the loan. This is why taking a LOC at 18% beats the mortgage rate at 7.5% because you can pay the $10K off early, then roll the cash again and again paying very little interest on the LOC and killing the interest on the mortgage. @@thomasxxxxxx2345
Great content as usual, I loved this as I am about to invest in uk property with 70k deposit (plus fees and more savings for furnishing and decorating) to buy my own place, but I am also treating it as my fourth investment, having two spare rooms for lodgers to cover this property mortgage and tax costs... and to build my equity whilst working my day job for my next investment.
First, you need to have a salary of at least 25k before you will be considered for a mortgage, that you need for properties. If you want to achieve a 75 percent yield yearly, try looking out for an investing advisory or else you will be competing against professionals themselves.
Generating returns are usually phenomenal. What would have been really interesting would be a proper breakdown showing their costs , services, investors return..
That's an intentional way to live debbie, that's the only way to become debt free. I've already paid off two previous mortgages. Now I'm working on my third and I cannot wait since it has to happen before retirement in four years and I'm already getting there the proficient way, Luckily for me my trader and coach Frost Hilda has been using every opportunity to ensure I benefit from each turn the market takes. Good luck staying debt free as much as possible in the future.
Absolutely Zachary, contract agreement splits are favorable, I’m also exceptionally well positioned as I’m privy, so that’s a good return deal for any investors creating revenue for more interest.
I'm from the UK as well and I'm currently overpaying my mortgage each month with money from investing. I'm on a no buy this year and my goal is to have my mortgage paid off in under 3years, hopefully sooner, so I appreciate and am forever open to receiving tremendous amount of value to achieve my target.
That’s the best explanation of a liability I’ve heard Van. I would never willingly take on a mortgage liability unless I had it also as an asset. Once it’s an asset, the tax code and positive cash flow are possible!
You been the most honest person to help people our country something we should've learn in school with this information will help all of us thrive .....i thank you god bless you and your family
As you can see from the views, this lady is the best on this subject! Listen TWICE, tell others to listen, call you and then y'all discuss this, tell more and more. What a ministry, what a mission! YOU DO NOT NEED A FINANCIAL ADVISOR AND YOU DON'T NEED A BANK!
I would say I don’t know how I find you on UA-cam, but I know better. My husband and I have been in prayer so that we get our credit scores up and our credit record in great shape so that we can purchase our forever home. It was no one but God that led me to *Pecuniary backdoors* . I thank God for this wisdom. Bless you.
I work in a furniture store office. A problem I see everyday are young people getting the interest free financing and then buying more expensive items than then they should. The financing is truly same as cash and no hidden fees. But instead of getting a $900 mattress they get a $4000 one. They look at the $67 a month for 60 months payment and go that’s not much I can afford that. They don’t take into account all the other things they pay a month or what happens if they lose income in year 2. Or that they could have used the other 3100 on other things they need. If it is something you could save up for you should. That open line of credit affects your credit score and the ability to get other lines of credit. Don’t get me wrong the 4000 mattress is worth every penny, but people should use their credit wisely not impulsively.
You're right about spending, but not the line of credit. The LOC is like a gun, or a drill if that makes it easier... I'll actually leave the comparison up to you, but in short - don't misuse it. peace
Making use of the 0% financing when you are ready to pay cash _can_ be a very prudent way to handle this. If you discipline yourself and place the cash in a HYSA or money market earning ~5% interest and auto-draft from that, you'll have ~$600 at the end of 5 years. Of course, that $600 won't be worth as much due to inflation, but it's better than 0. It also gives you the freedom to use that money as an EF if you ever had to - it's hard to get a loan an existing piece of furniture at 0% if you did need $2000 for something. Of course, 5% interest is a gamble for 5 years long since we were lucky to see 1%+ for nearly a decade, but even 1% still gives you $100 at the end.
I'll also add that if you kept the account at $4000 for the lifetime of your financing, this makes it look even better. You'll need to contribute $40/month instead of $67/month. After 5 years, your furniture is paid off, your account is $4000, and you only needed to contribute $2400 to your account, since your account earned $1600 in interest. And again, if you ever needed to, you could treat it was part of your EF.
The flipside to this interest payment is that inflation erodes the value money over 30 years. So at some point in the future, the 3500 in monthly payment is going to feel like 1500 or less (in terms of purchasing power). But I agree with the overall message here. 8% interest rate is nothing to mess around with.
That's true. However we live in the "now" society. Anything that you couldn't get or solve just now is not acceptable. The problem is finances are not compatible with that "now" mindset.
While you are right. The kind of logic that you're using isn't applicable for first time buyers or people downsizing. It's good for property developers or houseflippers, they can still acquire and it will likely be fine in the long run... If its your only property, 8% isn't sustainable.
if you can pay a line of credit 10k a month, you could simply pay your mortgage ahead by 10k a month. None of this woman's "logic" actually follows logic. She's doing cheap math tricks for those who can't pay attention to 3 columns at once. @@MaxStax88
God bless you I was just sitting here thinking how I need to put an hour a day in my financial education and I came through your video. Thank you so much for sharing you seem like a really smart lady. Thank you.❤
Thank you, thank you, thank you!! You made this si clear and simple! We unfortunately refinanced after only 2 years into out mortgage because they convinced us it would be "worth it" for 1% less. We were stupid because we started our 30 years over again. Now we're 2 years into that payment and due to closing costs, we actually owe MORE than if we had just kept the mortgage we had. 😢 Well...fool me once, shame on you...believe me, they will not be fooling me twice!! I never understood this before. It's clear, they don't want you to understand this!😮
Omg. I’ve done velocity banking on paying all my debt off, but never considered doing it on a mortgage. I love you! Thank you so much for opening up my eyes on a mortgage.😃
You’re not taking into account the fact that he is still paying a $490,000 mortgage for the 23 months. The difference between the two mortgages, in terms of interest paid over 23 months, is roughly $69k for the $500k mortgage and $67k for the $490k mortgage. So if he uses a line of credit to put $10k on the principal, he is saving $2k in interest payments over 23 months, but he’s paying $2400 for the line of credit if he decides to not pay it back. So it is costing him more.
I thought the same way as you and I’ve had a discussion in another section of the comments section. I assumed that “within 24 months” meant the next 24 months. However, the saving amount mentioned apparently comes in year 29 and 30 when the borrower makes no payments because the mortgage is paid off. If this is the case, the title should say “Save $69k over 30 years”. If the house is sold before the end of the mortgage, the full $69k in interest savings is not realized.
I believe you are right. Lets push the idea much further, lets take 50 times a 10K loan ... wow our house is pay off after the 1st month ... but now you have to pay 50*$100 = $5000 just as interest every month ... you are not paying of the principal... this prove that the whole idea is wrong. Bottom line, just borrow what you need and not more and pay every month as much as you can as everything you pay goes against the principal.
Interest is not “front loaded” on a mortgage. It is charged per diem on the outstanding balance. If you made a $10k principle pay down , as per her scenario, you would save $73,919 in interest over the life of the loan and pay off the home 2 years earlier by maintaining the original amortization schedule for a $500k mortgage. The balance on your mortgage will be $490k the day your servicer receives the $10k principle pay down.
She is spot on! After several years of paying my mortgage my banker offered me a re-fi but I had to pay closing costs all over again ( about 20k). When I asked him why I had to pay such a high closing cost for a house I owned for years he gave me some excuse. Then I remembered that the equity of my home was higher than the balance of my mortgage and I told him I was considering paying it off with a HELOC and the man had a hairy baby. I went with my gut and the principal balance began to decrees at a rapid pace. I just wish I knew about this method years ago
QuickenLoans was the only mortgage company I ever did a loan with where the ‘No cost refi” actually was zero cost to us! An impressive company. Not sure how they are now, as Rocket Mortgage.
@@Dre_Key - Since my equity was more than the balance of my mortgage, I used my equity line of credit to pay off the mortgage on the house. Paying down the HELOC is faster than the conventional loan. Wish I knew this years ago. I would’ve paid off my house sooner.
@@kuvasz93 How is paying the HELOC off faster than the mortgage? Unless that is you were actually sending in more $$ for your HELOC or you had a bad interest rate on your original mortgage. Or is it just because of the depositing the income check and using it as your bank account thing as arbitrage?
I started investing in stocks at 18, grew portfolio to $600k by 33. Recently, lost over 30% and want to mitigate risks. Also, plan to pay off my mortgage and want my portfolio to grow. What should I do for stable cashflow?
Dont think here is the place for personalised investment guidance. However, I suggest consulting with a reliable advisor to ensure appropriate investment planning.
Right, a lot of folks downplay the role of advisors until being burnt by their emotions, no offense. During the covid-outbreak, I needed a good boost to stay afloat, hence researched for advisors and thankfully came across one with grit. As of today, my portfolio has grown by 25% every quarter since Q3 2020.
I've stuck with the popularly ‘’Melissa Elise Robinson” for about five years now, and her performance has been consistently impressive. She’s quite known in her field, look her up.
Thank you for sharing, I must say, Melissa appears to be quite knowledgeable. After coming across her web page, I went through her resume and it was quite impressive. I reached out and scheduled
Christy you rock! In 2 months time I have paid off all credit card debt. My car is next, then will pay off mortgage. Your techniques are simple and they make sense. This is the first time in my life that I am in control of my finances!!
Do not send extra money to speed up a car payment. You could wreck the car tomorrow & the insurance company will not give you anything more tham the depreciated value.
I've watched countless videos on this topic. You need to know that you are a shining star. The clarity and articulation and trouble you take to to display the figures on your white board puts so many of the gurus out there to shame! You are a gem.. Thank you.
I have about $10,000 in credit card debt & was wondering if I could do the same thing to pay it all off. I have no mortgage. I just recently found your channel & subscribed. Thank You so much for making this easy to understand.
Ma'am, You are the BEST UA-camr I have EVER seen on personal finance when it comes to mortgages, you are a GODSEND to people like me who they are CONSTANTLY trying to screw us over
Mortgage rates are currently at an all time high since 2000(24 years) and based on statistics on inflation, we might see that number skyrocket further, a 30-year fixed rate was only 5% this time last year, so do I just keep waiting for a housing crash before buying or redirect my focus to the equity market
True, I mostly just buy and hold stocks, but my portfolio has been mostly in the red for quite awhile now. Unfortunately to be able to make good gains, you’ll need to be consistent and restructure your portfolio frequently.
This is precisely why I like having a portfolio coach guide my day-to-day market decisions: with their extensive knowledge of going long and short at the same time, using risk for its asymmetrical upside and laying it off as a hedge against the inevitable downward turns, their skillset makes it nearly impossible for them to underperform. I've been utilizing a portfolio coach for more than two years, and I've made over $800,000.
There are a handful of experts in the field. I've experimented with a few over the past years, but I've stuck with ‘’Rebecca Nassar Dunne” and her performance has been consistently impressive. She’s quite known in her field, look-her up.
You are the hero we didn’t know we needed. I just bought our first house last month. We paid 530k at an increasing interest rate each year until we reach 8.1%. Thank you for sharing this information. Sending love today.
Okay I'm just going to have to save some of your videos to an outside source cuz you're really putting it down on here I really enjoy watching your videos right now I don't have a mortgage but I sent it to friends of mine that do thank you for what you're doing by the way it's good information to know wish they would teach this in high school
Exactly you still have to throw that 8000 expenses on the LOC. Why not just throw the extra 2000/mth on the mortgage instead of all these mental gymnastics.
I just sold a property in Portland and I'm thinking to put the cash in stocks, I know everyone is saying its ripe enough, but Is this a good time to buy stocks? How long until a full recovery? How are other people in the same markt raking in over $200k gains with months, I'm really just confused at this point
How can I participate in this? I sincerely aspire to establish a secure financlal future and am eager to participate. Who is the driving force behind your success?
A smarter idea would be to reinvest into another property or 2 or three depending on how much you sold for. Stay away from the stock market unless you know what you’re doing. Much higher risk! Stick with real estate.
Buy gold is much better and safer than stocks. Put some in Roth IRA, high yield saving’s accounts, HSA(health saving’s accounts, Certified CD’s with 4-5%…ect) are best to considering. Be careful not to listen to no one online.💜🇺🇸🙏!
Markets been really good recently. I invested 190k in August and have seen a 31k increase. Wish I had placed more in, but I'm now weary of a fall if I buy now. In case you're interested, this is an index fund that is NOT managed. I do have managed funds, but none of them getting that type of return. Makes me think"what am I paying these people for"?
She is so right I bought my 250k home in 95 with a 15 year Mortage had it paid off in 8 years . Now I am saving $3000 a month I bought a second home as rental Its paid off also I have ZERO debt and my monthly bills are on Auto pay , It's so nice not having to white all the checks every month and have to scramble to pay them living Paycheck to Paycheck. I pay Cash for Everything I own 5 Cars ( Three 60s classics), One Airplane , Life is good if you Smart , Daddy did not raze No Fool . Boomer Here in So Ca.
Boomers could literally close their eyes and buy any real estate and make money. Generations after you had to work literally 3x to 5x harder or earn 3x to 5x more ...for the same exact jobs and assets. Flexing as a boomer is pathetic.
Oh course you had to be a boomer. The ones that f ed us all. Took away our pensions, rigged the game so us gen x and millennial have to deal with the consequences. Thanks a lot.
Christy, thank you for bringing this to the public. I have a HELOC and two rental property BLOCs. I have used and reused hundreds of times to buy cash flowing properties. LIFE CHANGING when chunked properly. Velocity banking is a game changer. Thank you so much!!! ❤
OK, I’m kicking myself right now because I have used this concept in the past to pay off credit cards and car loans, but it never occurred to me to do this to pay off my mortgage 🫣 In my 20s I ran up close to $30k in credit card debt and used this basic same concept to pay that off by transferring it all over to a zero interest card and using most of my income to pay down that card before the interest kicked in about a year and a half later. Now I use a cash back Visa like my checking account to pay for everything and always pay it down every month so I never pay interest, and in addition, I always get about $400-$450 per year in cash back from the Visa. So this video really hit home because I thought that paying extra toward my mortgage each month was the way to go, but now I’m sad because I could probably have nearly paid off my mortgage using a HELOC……😢. I’m 12 years in with at least $200k in equity with about 80k left so now I’m gonna try to pay off my mortgage in the next couple of years…..here I go!
So today's rates are 7% now?! Oh my. I can't talk I have the 4%. Your a blessing Christy. After we tackle the housing market next the car, then insurance😂
You are an angel from the heavens thank you so much! I feel so much better. I never could imagine that we could afford to pay off our home and avoid all that crazy interest on our $307k home with a 5.99 interest rate that would have forced us to pay 662k for! I refuse to buy the bank another home and I’m going to get on online and start looking for a second job (part time) We really need to find a flexible side hustle for both my husband and I so that way we have extra funds to really attack this mortgage. 5-7 years is my goal now! we might actually have a chance now Thanks to you! Can’t wait to be financially stable and debt-free so I can spoil our nieces and nephews!
At the end of the month in this example, mortgage principle is reduced $490K, but 8K of expenses is owed on the LOC at 12% vs. If the 8K were in the mortgage balance it would have been at 7.35%. Now in month two, you could start paying down the 8K owed on the LOC. Assuming interest is calculated on the daily balance on both the mortgage and the LOC, wouldn’t it be better just to apply the 2K in disposable income to the principal on the mortgage each month?
@@tosinpeter9466Will you either have an emergency fund or you don't contribute the additional to the principle You're not entitled to pay more than your monthly payment.
@@tosinpeter9466 Use the credit card or HELOC for an emergency. Again it’s an emergency so this is worst case scenario. Extra principal payments, not this velocity nonsense is the way to go
You can pay extra each month but you start with 2k. Her example you start with 10k. Every mth you put 2k extra on the principal. Her example you put 10k every 5 months on the principal. Her example you have a LOC/HELOC for emergency. Some people won't put the extra 2K on to the principal because they worry about having emergency money. So having a HELOC /LOC takes concern away. I hope this helps.
@@smmasongt the way interest is calculated with HELOC/LOC/CC is different then a mortgage. How are calculating the interest its not the same. With simple interest loans, the interest is only applied to the principal, while with amortized interest, the interest is applied to both the principal and the accrued interest.
Schools are not much more than indoctrination centers, intended to create obedient workers in factories. You know,....mindless drones who are taught only enough to keep the lights on and the machinery running for the real 'owners' of this factory called 'Society'. It's been this way since at least the dawn of the industrial revolution of the mid-1800's. The notion that the youth are receiving an 'education' at school is a comical farce. As the great comedian and social commentator, George Carlin, has stated, (and I'm paraphrazing) "The 'real' owners of this country are not interested in having a population of people who are sufficiently well educated as to realize how they are getting screwed by their government, and the government's owners, who threw them overboard about 70 years ago". Furthermore, research has shown that despite significant increases in spending on 'education' in America over the last few decades, the students are getting dumber and dumber, scoring ever lower in standardized testing as compared to a multitude of other countries around the globe. So, if it's not a question of money, might it instead be that those in power are altering the curriculum and the standards to which the students are to be held? Where I live in Canada, I have recently been informed that if a student fails a grade they get passed on to the next grade anyway as opposed to having to repeat the failed grade, as was the case back when I was a youth. Is it any wonder then that the whole thing is circling the drain faster now than ever before? Good luck America. By the way, it's not much better here in Canada, so please don't get the idea that I'm just picking on the US of A.
Be honest, I'll bet if schools offered personal finance classes, most kids wouldn't even sign up. Second, if she taught the class, they'd all be worse off for learning something so flawed.
Yes I perceive you have a genuine authentic mission and purpose from The Lord in regards what burdens, distresses and enslaved many people. May thee Lord continue to bless, protect and keep handing you His Wisdom to free His Children and many others. Thank you I have passed your channel on to others including me family. Your channel resonates as a Child of the Kingdom of God giving wisdom and liberty regarding finances simultaneously and comes from a wholesome righteous source. Please keep them coming it's helping so many people like myself. Obvious the Lord has chose you for such a time like this. 🙏🏾
OMG Ive dug into amortization schedules and found many ways to overcome awful 30 year mortgage interest. Never have I thought to use a line of credit. Absolutely brilliant 🎉
@ZimZam131 that is an extra payment to principal. Are you saying it's better to do cash VS line of credit? The method also assumes cash flow and discipline
@@realestatemindset Both methods assume cash flow and discipline. You’re not creating money out of thin air. And yes, it’s better to pay cash straight to the $500k principle than take out another line of credit, unless the new line of credit has lower interest than the original. The title of the video is deceptive. The $69k of savings takes 30 years to realize, not 24 months.
@ZimZam131 ahh, now I see your point, but also, it's not 30 years. 40k on average loan and rate would drop it to 22 years. From this point, decisplne really comes into play, bi-weekly or extra monthly payments will reduce the term even more. You probably know that also. Bottom line, you got to go all the way if you plan to pay off your mortgage early. Still I find it intriguing how an LOC is way better VS an 30yr amortized mortgage. Crazy how much banks make.
At first i thought this was a joke and maybe it is. You still have to pay interest on the $490K so you are only reducing the interest about $15k over the life of the loan. Your savings, assuming you are not paying interest on the LOC, is only 7.5% on the $10k.
You are offering so much value in your videos. Thank you so much. Its a master class on how to navigate effectively through our everyday finances and credit decisions.
I paid off my 210K house in 36 months using velocity banking. This stuff works. I used 2 LOC's and I was lucky to get two CC offers for 0% and .9% for 18 months each. So the whole time I put my living expenses on the CC's and made huge chunks with the LOC.
thanks for this I just did this put all my living expenses on 1 CC. A few other living I had to put on bank draft with a checking account. Which I hate but I had no choice. I will look into this when i start back house hunting next year.
Bless you, and thank you so much for this information. I wish I had known you when I started off. We've had to scrimp and save for decades, living on next to nothing, and I don't drink, smoke, take drugs, go out partying, have anything designer, or holidays. But now we are financially free after going round the houses for decades. But I'm blessed to be debt free on a tiny pension. This should be taught in schools, as Jewish children are taught to be savvy with their money. But our systems won't allow it because then we will see where we are being ripped off, left, right, and centre, everywhere we turn.
My brother, you needed this! I already had ideas of raising my score. But I just found more ways because of this. *Pecuniary backdoors* are such a blessing, keep going frl!
Thank you *Strategic techies* so much for you’re advice as my credit score is 771 and wanting to increase it as much as possible as l’m just trying to look out for my future. I’ve subbed you.
I haven’t seen all of your videos yet but I think what would be helpful is showing the Mortgage Amortization Graph. That way people can visually see when they first get a mortgage the majority of their payment goes towards interest AND it really doesn’t even out (50% interest 50% principal) until mid way of the loan period. Also showing an Amortization Calculator and plugging in early principal payments, annual or monthly can really be effective. This is the way I figured out the insane amount of money the banks were collecting in the beginning of a new loan. Motivated me to add principal payments monthly and anytime I had extra money. I do not have a financial background but these tools showed me everything.
I haven’t run the difference in cash flows or FV of each one of these legs but I’m getting the feeling that it would just be cheaper and easier to permanently buy down the interest rate. At that rate and home price you could probably buy down 2.75 points for about $26k. You’d have a 4.6 interest rate and you won’t have to pay back the $10k plus 26 months of interest.
Great video! Straight forward and easy to understand! Will be implementing this immediately! Thank you so much for sharing this information, I love your channel!
The basic premise of this is that you are using a line of credit which has a yearly interest rate to pay off part of your mortgage which has an amortized interest rate. The mortgage has all the interest built in up front so for a 30 year mortgage for the first 10-15 years if you made default payments, the majority of your money is going to interest and not principle. The personal line of credit allows you to take that $10k and pay off $10k of the principle of your mortgage which in turn reduces the amount of amortized interest you would have paid on it. You still have to pay back the $10k from the personal line of credit but because the interest is based on a yearly rate your interest is much much lower and the payment is much lower.
When she's talking about putting your income into the personal line of credit, she's saying take your paycheck (after taxes, deductions etc) and put the entirety toward paying off the loan, then use the loan as a revolving line of credit to pay your groceries, gas, utilities and other living expenses. You rinse and repeat this cycle until the personal line of credit is paid off, then you do it again to pay off another $10k chunk of your principle. Doing this can save hundreds of thousands of dollars in interest over the life of a 30 year loan.
Thank you for summarizing! I understand what she meant so much more now.
@@graceandpanic9281 You use the line of credit for day to day expenses AFTER you put your pay check into it. You take the line of credit, apply 10k to the mortgage, put your entire pay check back into the line of credit paying off a portion or maybe all depending on how much you make, then use the remainder on expenses. Rinse repeat until the line of credit is paid off and you can take another 10k to apply to the mortgage.
@@zilvarro5766 It might take some longer than 5 months to save up the 10k, but yes, making even a single extra payment a year on your mortgage will reduce the overall interest you pay on it.
Isn’t she just showing us how we could do this today, not wait to “save up enough “ and also make a dent in our principal so immediately we are saving in interest?
@@zilvarro5766 maybe do that before getting a mortgage
I'll need to watch this at least 10 more times to understand what is going on
I thought I was the only one 🫣
It took me a few times to watch one of these videos. But then It clicked. I have been doing this and it works like a charm.
Same here. It sounds easy but for some reason still a little confusing to me. Don't know why
@@Dondonden1234 it took me a few times watching the video. Then it clicked. You will get it.
I think this only works on 30 year mortgages
Two additional comments to this wonderfully informative video:
1) Make sure your mortgage includes a clause that allows you to pay off the mortgage early
2) Make sure any extra payments you make are going towards the principal only
Thank you.
I think in this day in time, pre payment penalties may be the norm. Yes by all means make an effort to get a loan without them. Draw a big line through that paragraph with you initials 😂
Another option is you can take the extra $300/month payments and put it in a cd account or buy bonds at 5% interest. Then take that extra $ and pay off your home in 10 to 15 years
It is no longer normal to have prepayment penalties on mortgages in USA; you can call your lender to verify or review your mortgage docs. I always wrote a separate check with a note on it, ‘apply to principle only’ to pay off quickly.
Question: how can you roll this forward every month or two? $10 k per month applied to principle….would pay off pretty fast. I realize all other bills have to be paid too, but in this case there seem so be an additional $2 k of free cash flow.
One extra payment a year that goes to the principal only will make the mortgage go down 18 months.
The simple math is this, the more you can put towards your home (principal balance) the less your interest will be, overall. The faster you pay down your balance of your home the more money you save. This information is incredibly valuable!
Thanks
As a mathematician with an economic background. I would like to give the best secret for saving your money:
Stop buying expensive crap you don't need, especially on credit!
Brilliant! Just go pay rent all your life!
You're 100% correct. We need to buy a home as small as possible. The rest of our money should be invested in a rental property or stocks.
@lilyanm-g3386 My home is paid for. However, you need a good down-payment on your new mortgage because more and more people are failing to pay their mortgage and have beenbthrown out!
Haha yes. But not just expensive crap that you don't need but even if It's cheap, the amount can add up very quickly...
Why did he buy a home at 7.35% interest? No twisted his arm ..
In 2006, I bought my first house with a 6.375% 30 yr loan! First month I put another $4k from savings and had a HELOC of $11k, borrowed $6 k to pay down the principal, my checking account was connected to the HELOC so as I got paid I put most of it in the HELOC to pay it down as fast as I could so I could dump another $6k! Paid that house off in 9 years and saved over $100k in interest
How? Makes no sense
What! There's a lot I have to learn.
Oh so it’s not a one time thing. It’s repeatable.
@budgetlifemillionairsby405 AWESOME!!! I used my HELOC the same way!
I need to do this!
My take away is that mortgages are typically “compounded” and lines of credit are “simple” interest. When it comes to paying debt, you end up paying significant less money for a simple interest loan even if the interest rates are higher. Compounded interest = interest charged on interest. I think I see why mortgages are considered “ highway” robery.
It's more that mortgages are exponential while simple interest are linear
Yes but it's finding a bank that will give you a simple interest h e l o c. Many banks will give you a second option HELOC. So the structure of the HELOC matters.
There is no "interest on interest" with mortgages. It can only happen for a loan when you don't pay ANY principal, and you pay less than the charged interest. This only routinely happens with credit cards and similar forms of debt. If this happens routinely on a house, you'll be foreclosed.
The 'problem' with mortgages is their long standard amortization schedule, but this is actually a good thing AS LONG AS you can use your cash flow for something better (like stocks). If you can't then you usually still have the option of paying extra principal on the mortgage (directly out of your paycheck, meaning 0 interest, not involving a LOC).
Holding a drawn-down LOC for 30 years and holding a mortgage for 30 years work in virtually the exact same way. Similarly, if you paid off your mortgage in a year that would work the same way as paying off an LOC in a year.
Ah…I get it now.
I have a LOC that accrues interest in the principle monthly. The yearly rate is 12%, coincidentally.
Just watching how the interest is applied has taught me a lot.
Now, I also have a student loan that compounds DAILY! I will never pay this off, unfortunately. However, just to give an example of compounding interest to everyone, I began with a $28k student loan. It is now over $70k.
I'm 54 and my wife and I are VERY worried about our future, gas and food prices rising daily. We have had our savings dwindle with the cost of living into the stratosphere, and we are finding it impossible to replace them. We can get by, but can't seem to get ahead. My condolences to anyone retiring in this crisis, 30 years nonstop just for a crooked system to take all you worked for.
I feel your pain mate, as a fellow retiree, I’d suggest you look into passive index fund investing and learn some more. For me, I had my share of ups and downs when I first started looking for a consistent passive income so I hired an expert advisor for aid, and following her advice, I poured $30k in value stocks and digital assets, Up to 200k so far and pretty sure I'm ready for whatever comes.
@@Elliot-Ivan That's actually quite impressive, I could use some Info on your FA, I am looking to make a change on my finances this year as well
@@MayaPaisley- My advisor is VICTORIA CARMEN SANTAELLA;
You can look her up online
Nah I Can't say I can relate, VICTORIA CARMEN SANTAELLA charge is one-off and pretty reasonable when compared to what I benefit in returns.
Comparing the 12% interest of $10k over 23 months to the 7% interest of $490k over the same period, and calling it a savings, is exceptionally backwards math. You note she never ran the calculations for $500k vs $490k on the mortgage. This scenario only works if you have $10k to pay the HELOC off immediately. If you have $10k, just pay it towards the lower interest mortgage. Using the Heloc as a checking account also does not work because the interest accrues daily. It is not like a credit card where if you pay it off by the end of the month, you won't pay interest. You pay interest from day one! In fact, you would be better off using a credit card as your checking account. Especially if you get points with cash back.
Thank you, I thought I was missing something here.
This lady is a complete moron. Takes out a $10,000 dollar equity and put the 10 grand on 500,000. It makes it 490 and thinks that the other loan of 10,000 just disappears. What a complete idiot.
"Don't pay anybody to help you with your finances". You get a thumbs 👍 for that 1 sentence alone
Those words alone got me subbed
😂…Thank you, but it’s the truth!
Unless you are clueless and hate numbers with a passion. Then it just won't get done
How can i get rid of PMI, i still have another 3 yrs!
If you have a conventional loan, and you house has appreciated by 80% call your bank and tell them you want to get rid of your PMI, they will send out an adjuster which you pay, and will determine the value of your home.
I understand this!!!! I NEED to do this!! Thank you so much!!! Oh man!!, I'm sick knowing how much I've spent on my house these many years and the balance just hardly moved!! THIEVES!!!!!! ..... they know what they're doing and will continue! We all need to LISTEN to you Vann!!! Thank you!! I'm going to begin this process!! ❤
_They are not so much as thieves.. they just didnt inform you and you didnt figure it out. As a matter of fact. If they block you from doing things you can do to help you or act like they dont know what you are talking about so that you forget about it and quit so that you can continue paying off the interest.. then you can call them thieves and scammers._
@@jayknight2492If I buy a product for 100$ and sell it to you for 200$, am I not a thief or scammer at least, whether you realise it or not?
Protect this woman at all cost!!!!!
Seriously, she's doing God's work.
Right! She's telling some stuff they really don't want people to know.
This is awesome truth. Thankyou! After loosing my home back in 2008 and doing years of renting, I bought a camper and moved on a piece of land. I have no debt and am free from the "home" mortgage scam. The only caveat is I live far out in the country so the county can't tell me what I can or can't do on my own land (Living in a RV/camper). Best decision.
I just discovered you today…the first video I watched was paying down debt without any extra money. That video popped up and couple times and I waived it off and then today I decided to watch it and I am flabbergasted…thank you for your wisdom and education!
I would say I don’t know how I find you on UA-cam, but I know better. My husband and I have been in prayer so that we get our credit scores up and our credit record in great shape so that we can purchase our forever home. It was no one but God that led me to *Pecuniary backdoors* . I thank God for this wisdom. Bless you.
*I’m glad it works for me and i am sure it will works for you as well*
You are AMAZING!!! I get so excited when you post a new video! We only have our mortgage left and have started our velocity banking journey a couple months ago thanks to you!!! We can’t wait to be 100% debt free!
Wow! That’s wonderful! Thank you
The feeling is indescribable; I've been completely debt-free for a while, so my main focus now is my charities.
@@marietaylor5174doubt you're debt free
@marietaylor5174 do you pay taxes?
This is complete bullshit. She's wrong. If you keep that mortgage all you do is pay it off a few years early. You are actually only saving the interest on those last few years, which is minimal. This is precisely why they front load the interest. Because most people refinance or sell between 7 to 11 years. It looks slick on paper, but its BS! Trust me I have a BS in finance, an MBA, and I've been a mortgage broker for 25 years. Also 7% is historically speaking a low interest rate. People only think it's high because the incompetent fools in government love to mettle in the economy and they manufactured ridiculously low rates after 2008 and created South American style inflation making everything you buy now significantly more expensive.
The problem today is not 7% interest but a house costing $500,000 that should only cost $100,000. Run the numbers on $100,000 @ 15% versus $500,000 @ 7%. The interest rate is rather meaningless. The bigger issue is the cost of the house, which like college tuition and healthcare, keeps skyrocketing because all 3 are heavily regulated & subsidized by the federal government.
The better thing to do is get on a budget, save enough for a bigger down payment, then get qualified for a 15 year mortgage, which has a lower interest rate, no mortgage insurance, and you pay it off in half the time or less if you stick to your budget and pay extra every month.
At the very least get on a budget and save enough for a 20% down payment to avoid mortgage insurance. Then stay on that budget and pay extra every month towards principal to pay your house off years ahead of time. Better still, put 20% down and get an interest only mortgage. That payment is less than a 30 year fixed, butt make the same payment as a 30 year fixed and you're paying the principal down much faster. If you can't wait, put down 10% but use an 80% 1st mortgage and a 10% second to avoid mortgagee insurance. Pay the 2nd off as quickly as possible then apply that money to your 1st mortgage every month and pay off your house in less than 20 years.
There are plenty of other ways to to save, but these are the easiest and most practical for most people. But the real problem is the government, inflation, and the public as well. American love to spend and few are on a budget. Few are saving.
If you really want to save and make a lot of money find a successful real estate investor and buy them lunch. Work for them. Do anything you can to learn from them. Learn how to use debt as leverage. Make mortgage debt a tool to wealth & freedom rather than be its slave, which is what the government and the elites want so they can control you.
The current market/economy is unnecessarily tougher for boomers/senior citizens, I’m used to just buying and holding assets which doesn’t seem applicable to the current rollercoaster market plus inflation is catching up with my portfolio. I’m really worried about survival after retirement.
Boomers inherited the richest economy the world has ever seen, extracted everything they could from it, stole from the future, and now have the audacity to cry about not being able to steal from their grandkids anymore.😂
…at least you have assets?
My husband and I are approaching our 50’s. We have yet to be able to own a home.
Yall have it easy lmao
I so glad my dad explained this concept to me when i bought my house 20 years ago for 125k and put 75k down and paid it off in 5 years. That knowledge was worth 4 college degrees if not more.
My brother, you needed this! I already had ideas of raising my score. But I just found more ways because of this. *Pecuniary backdoors* are such a blessing, keep going frl!
Thank you *Strategic techies* so much for you’re advice as my credit score is 771 and wanting to increase it as much as possible as l’m just trying to look out for my future. I’ve subbed you.
Wow !! Thank you so much for opening my eyes up and Helping my family to understand our finances. .
THANK YOU THANK YOU
I'm lucky, I'm past the saving mode and well into the spending mode. Retired 7 years ago. Work hard, save your money and retire early. It's a solid plan that is working great for me.
@victoriajonas44 Talking about being successful!
@victoriajonas44 I know I am blessed because if not I wouldn't have met someone who is as spectacular as expert ROCHELLE DUNGCA-SCHREIBER..
@victoriajonas44 She helped me recover all I've lost trading by myself
I've been investing and doing it on my own but end up losing all..
Her name is ROCHELLE DUNGCA-SCHREIBER; you can reach ouy yo her by doing a Google research!!
….more scammer bots
Thanks! Love your videos. I am definitely going to do your hack when I buy a home❤
Thanks and Blessings from this new subscriber! So under the pretext of owning my own home, or homes over the many, many years of mortgage payments that I've been making since 1980, I never quite understood the thievery that I have allowed me and my family to be subjected to until you have so thoroughly and reasonably explained this to me. The feeling I am going through at this moment is nauseating, very, very nauseating and to think that I was told what a great deal I'm getting with a 30 year VA Loan. Well, the Good News is, one day I'll be leaving this place for my True Home, and JESUS paid that mortgage for me. Thank YOU JESUS! Thank you Christy Vann!
😂😂
Jesus didnt make any payment. Smarten up
@@FimotivationGod provides for us. Jesus died on the cross for you and I as a living sacrifice. He has paid the ultimate price with his blood for our sins for you and I.-John's wife
This is so eye opening. We are making the banks richer while we struggle. Thanks for this.
I would say I don’t know how I find you on UA-cam, but I know better. My husband and I have been in prayer so that we get our credit scores up and our credit record in great shape so that we can purchase our forever home. It was no one but God that led me to *Pecuniary backdoors* . I thank God for this wisdom. Bless you.
*I’m glad it works for me and i am sure it will works for you as well*
Thank You so much for this video!! My husband and i are looking at buying a house, they offerd us a 10% intrest rate. And after watching your videos i know i will Never take out a mortgage. I am actually planing to save up enough money to buy a cheaper house in cash. Thank you for all your very helpful advice and knowledge!! 💖🙏 God bless
My brother, you needed this! I already had ideas of raising my score. But I just found more ways because of this. *Pecuniary backdoors* are such a blessing, keep going frl!
Thank you *Strategic techies* so much for you’re advice as my credit score is 771 and wanting to increase it as much as possible as l’m just trying to look out for my future. I’ve subbed you.
I have never been taught anything about money except spending , and more than what I have most times. You simplify a concept that completely eludes me. Thank you very much
Spend less than you make,
2. Avoid debt at all times. Try to avoid a car payment. -yes, you can live without one. Keep that margin as large as you can so you can spend, Save, give.
Don't trust this crackpot video though. It is TERRIBLE advice and is misleading.
Yes, this concept also eludes people that fully understand money because it is seriously flawed and wrong.
exactly. Anyone who takes the advice in this video clearly doesn't know how math works. "Just times 4 by 2, and make it 8%!" with zero rationality behind it.
Talking about "if you pay 10k in one day" then it would also take off interest on your mortgage if you paid 10k up front on day 1, that's called a "down payment". @@Chasmodee1
You have made a difference already. You have educated a young black bredda...One Love
Love the brutal honesty! Im so glad my hubby had the goal of paying off our mortgage early. I just turned 40 and we have been debt free for several years.
In America, Debt Free is an illusion, the government owns everything thanks to taxes. You lease it until you die or give up the charade.
PLEASE SHARE how your doing this,ARE KIDS ARE IN TROUBLE WITH THESE SCAMMERS...TRUTHS NEED TOLD,AND HELP IN PROPER EDUCATING THEM...SCHOOLS ARE NOT ,AND WILL NOT‼️🙏
Makes a difference when you're married
Yes. I could have written this. But, yeah makes life d
So much easier.
Basically true…
I’m poor, I rent, and I don’t know jack about finance. But this just made me want to learn! My late father was self taught at investing and was really good at it. He did quite well. But he never taught me. All his knowledge passed with him. But now I feel I can hope. That I can educate myself. And finally stop struggling.
Thank you!
You got this!!
@@petohmi thank you sir!
Don't trust this lady's advice though. She's full of crap and doesn't understand the math. She speaks with a lot of confidence, but she is completely wrong!
I graduated with honors in business, with distinction from engineering, and have loved compound interest since high school (where I got 97% in math). Please don't trust this crackpot, for your own financial safety! I've reported this video to UA-cam for misinformation.
Listen to Dave Ramsey! Get his books from the library! He’s all over podcasts and videos.
@@RoxanneJ yep! A friend highly recommends him! He’s on my list of to-dos after first making headway with depression and anxiety. I think a lot of people who don’t take care of themselves financially do so because of mental health issues. It’s hard to act in your own self interest when your mind is overwhelmed.
I am mind blown. I need a LOC immediately! I love the ending about "you don’t need a financial advisor, your mama or the bank" praise The Lord for this video.
Praise The Lord for He is so Good!❤️
Better yet, build $10k+ in savings
It’s nonsense
Do not fall for the lies in this video.
@@ZimZam131hi. What is the lie?
It's amazing to me how there can be so many opinions about this. Just proves that some people "get it and some don't". My reality is that it was confusing at first, however, after several reruns and some other channels, I tried it. I paid off one rental home and will have another one paid off in a year. Easy peasy once you understand the difference between simple interest and compound interest. Thanks for your valuable teachings.
@timothyglassel1239 Thank you for sharing!
I just found your channel This is my second video of yours. Wow where have you been for the last 10 years.
I’m definitely going to be sharing this with everyone I know and have them sharing it and continuing it down the line. Thank you so much for making this concert. I can’t wait to learn more !!
I've started using your suggestions for paying off my credit cards. This is a wonderful UA-cam channel.
Excellent!!
I will re- watch this a few more times .. your an angel for teaching us this lesson!
Thank youuu! I would go crazy every time my family would refinance their home while looking at me crazy…now I shared your videos all the time specially to my youngsters so they don’t make the same mistake!
❤️🙏🏻
Do not understand finances : Never been educated to : This lady should get a public award for what she just demonstrated and shared. The right financial education and guidance is a must for everyone ,no matter what their circumstances : Would save a lot of debt misery if it was taught in schools.
🥲 so precious! Thank you so much for your kind words. You speak truth.
@@VanntasticFinanceskn Banks’s are some of the largest political diners to Washington, saw a video named something like “why businesses is not taught in high school.” Lots of reasons, but long, short, they claim we need basics and can get that info from college or family later in life, even though parents have been pushing for it for years.
But they’ll teach your child what semen tastes like 😂 thanks to our comatose president. Yep if you have an eject button, now’s the time to use it!
But it wouldn't make the masters money..
The trouble is, many schools do teach it but a lot of kids are like I was; just trying to blow through school to get done, and not to learn. You get down the road a ways and realized you wish you had paid attention better!
Sounds like the banks would fall apart if we all knew how to protect ourselves financially.
This method makes SO MUCH SENSE!! I am so grateful for you.
@CZebelle I’m so glad!
I’ve been watching your videos over the past couple of days and this is the one that has changed my life. I’m going to destroy my mortgage with this method! Thank you so very much!!!
Thank you for your educational videos. They purposely don’t teach this to the masses. All by design.
Amen!
Wow @Jesus…you’re so smart!
To understand this, i use a mortgage calculator online. Input the Property Price, Loan Tenure, Amount you will borrow and Interest Rate. You got it. Thank you so much for your time to make this vid. This is like divine enlightenment. Now i know how bank works. I’m sure it will help a lot of people out there.
I put an extra $200/mo on my principle and it took my loan down so quickly. I was shocked. She’s talking about taking down the interest on the front end of the loan where the interest taken by the bank is highest. I shared this with my twins, who both own homes in the 2% range of interest thankfully. They got in when it was at that point, so grateful.
My brother, you needed this! I already had ideas of raising my score. But I just found more ways because of this. *Pecuniary backdoors* are such a blessing, keep going frl!
I wish i learnt most of these principles about seven years ago. A lot of people have been trapped strongly in the matrix-- Go to school, get a job, and then slave your whole life. Many miss out on life-changing information that could have great effect on their finances. I played with the stock market sometime in 2020, and I was surprised at how well it turned out. I want to put in $90k more into the market. I heard people are making really great returns despite the downturn. Any recommendations?
Avert too-good-to-be-true con tricks. Consult a fiduciary counselor; these professionals are among the best in the business and offer individualized guidance to clients based on their risk tolerance. There are undesirable ones, but some with a solid track record can be excellent.
Yes, I've been in constant touch with a Financial Analyst for approximately 8 months. You know, these days it's really easy to buy into trending stocks, but the task is determining when to sell or keep. That's where my manager comes in, to help me with entry and exit points in the industries I'm engaged in. Can’t say I regret it, I’m 40% up in profits just in 5months with my initial capital of $160k.
How can one find a verifiable financial planner? I would not mind looking up the professional that helped you. I will be retiring in two years and I might need some management on my much larger portfolio. Don't want to take any chances.
My Financial adviser is ‘’Stephanie Kopp Meeks ’’ she’s highly qualified and experienced in the financial market. She has extensive knowledge of portfolio diversity and is considered an expert in the field. I recommend researching her credentials further. She has many years of experience and is a valuable resource for anyone looking to navigate the financial market...
Thank you for this tip. It was easy to find your coach. Did my due diligence on her before scheduling a phone call with her. She seems proficient considering her resume.!!
Making money is not the same as keeping it there is a reason why investments aren't well taught in schools, the examples you gave are well stationed, the market crisis gave me my first millions, people shy away from hard times, I embrace them.. well at least my advisor does lol.
It's important for investors to exercise caution with their exposure and be mindful of new purchases, particularly during times of inflation. It's advisable to seek the guidance of a professional or trusted advisor, as high yields in this economic climate can be challenging to navigate.
Monitoring my portfolio closely has been incredibly rewarding. In just the past two quarters, I've made an impressive $173k. It's fascinating to see how experienced traders can generate significant returns. This has definitely been a bold and exciting decision for me.
@@TomD226 Please pardon me, who guides you on the process of it all?
@@TomD226 Thank you for this tip. It was easy to find your coach. Did my due diligence on her before scheduling a phone call with her. She seems proficient considering her résumé.
Great sentence.
Hi Vann this is AMAZING! My wife and I are going to start using this method right away. These are the things they should teach in school instead of putting children in debt!
They literally don’t. And they teach all the math she’s using. It’s not their fault you didn’t think to apply it like this.
Thank you so much, Jay! I am so glad that you have sense enough to see the method! The crazies, that answer things, like below, must be miserable in every single way. 😂😂I am excited for you!
You're welcome Vann lol 😆. That is indeed true, but I really don't pay certain things mind. I was raised that "it's not what you're called, but it's what you answer to." God bless you Vann and continue the good work. God bless.
So what if you can not pay your mortgage with the line of credit you are trying to pay down? Or at least if your bank is making it seem as tho you can’t pay a mortgage unless it’s with the cash advance, but that’s tapped out as well?
@@richardgil5733The goal isn't to pay your home mortgage off completely with this method. It's only to pay a portion like 10000. But if you're already tapped out on A-line of credit. Then pay that off 1st and look at things like your current interest rate or how much your home is worth because the math isn't always perfect in every situation. For some homes this method may end up costing you more.
I have shared this to everyone I know! Thankfully you got me started with velocity banking. I have paid off 20k in 9 months with my HELOC. No extra money from me. Bless you Sista!!! Thank you.
I cannot thank you enough for this!!!! I wish I would’ve seen this sooner - the banks will no longer be fleecing me with a grin on their face, I’ll be smiling and WAVING that much sooner because of this and it’s so simple to do!!! Bless you and good fortune to you and yours!!!!
🤣🤣 Thank you!
Here's how I paid off my mortgage years early. When my equity equaled my remaining mortgage amount, I took out a HELOC and used the money to pay off my mortgage. Then I put every penny I had each week to pay down the HELOC. Since I wasn't paying amortized interest, it was straight forward. I watched my balance dwindle month after month.
Question I have $200k in equity i owe $145k but my interest rate is 2.67% if I take my equity out and pay off my house I will pay $145k to current interest rate
Thank you so much for all you do. I started this journey by watching nearly all your past videos as well as the new one. I have re-arranged my ways and will soon have almost 10,000 in credit cards gone in 6 months. I too have tried the snowball method but didn't get too far before I gave up.
Congratulations!
Hey Linda I need help with this as well. Are you single income home or you have an significant other ?
@@dajoremarks9137 start by doing a budget. You need to account for every dollar coming in and going out. Don’t spend more than you make. Look up Dave Ramsey. He has a very good program without all the tricks.
This is complete bullshit. She's wrong. If you keep that mortgage all you do is pay it off a few years early. You are actually only saving the interest on those last few years, which is minimal. This is precisely why they front load the interest. Because most people refinance or sell between 7 to 11 years. It looks slick on paper, but its BS! Trust me I have a BS in finance, an MBA, and I've been a mortgage broker for 25 years. Also 7% is historically speaking a low interest rate. People only think it's high because the incompetent fools in government love to mettle in the economy and they manufactured ridiculously low rates after 2008 and created South American style inflation making everything you buy now significantly more expensive.
The problem today is not 7% interest but a house costing $500,000 that should only cost $100,000. Run the numbers on $100,000 @ 15% versus $500,000 @ 7%. The interest rate is rather meaningless. The bigger issue is the cost of the house, which like college tuition and healthcare, keeps skyrocketing because all 3 are heavily regulated & subsidized by the federal government.
The better thing to do is get on a budget, save enough for a bigger down payment, then get qualified for a 15 year mortgage, which has a lower interest rate, no mortgage insurance, and you pay it off in half the time or less if you stick to your budget and pay extra every month.
At the very least get on a budget and save enough for a 20% down payment to avoid mortgage insurance. Then stay on that budget and pay extra every month towards principal to pay your house off years ahead of time. Better still, put 20% down and get an interest only mortgage. That payment is less than a 30 year fixed, butt make the same payment as a 30 year fixed and you're paying the principal down much faster. If you can't wait, put down 10% but use an 80% 1st mortgage and a 10% second to avoid mortgagee insurance. Pay the 2nd off as quickly as possible then apply that money to your 1st mortgage every month and pay off your house in less than 20 years.
There are plenty of other ways to to save, but these are the easiest and most practical for most people. But the real problem is the government, inflation, and the public as well. American love to spend and few are on a budget. Few are saving.
If you really want to save and make a lot of money find a successful real estate investor and buy them lunch. Work for them. Do anything you can to learn from them. Learn how to use debt as leverage. Make mortgage debt a tool to wealth & freedom rather than be its slave, which is what the government and the elites want so they can control you.
You just taught me a lesson in mortgages and finance I wish I knew years ago…thank you, thank you, thank you.
Honestly, we need more people like you MYSTICFLIP if we had an army of people like you, we could stamp out these total loss in no time. I love that you are helping the victims, too it's ultra gratifying when you are to save people in real time like you do thanks 🙏🏻 for getting ours approved
This is crazy! I never knew this, but I've never attempted to buy a house. But this is an eye-opener make me realize that I need to learn more about mortgages. And it doesn't make my credit cards or lines of credit look so bad after all. It makes him look like a useful tools that I can take advantage of if I ever need in the future.
This is complete bullshit. She's wrong. If you keep that mortgage all you do is pay it off a few years early. You are actually only saving the interest on those last few years, which is minimal. This is precisely why they front load the interest. Because most people refinance or sell between 7 to 11 years. It looks slick on paper, but its BS! Trust me I have a BS in finance, an MBA, and I've been a mortgage broker for 25 years. Also 7% is historically speaking a low interest rate. People only think it's high because the incompetent fools in government love to mettle in the economy and they manufactured ridiculously low rates after 2008 and created South American style inflation making everything you buy now significantly more expensive.
The problem today is not 7% interest but a house costing $500,000 that should only cost $100,000. Run the numbers on $100,000 @ 15% versus $500,000 @ 7%. The interest rate is rather meaningless. The bigger issue is the cost of the house, which like college tuition and healthcare, keeps skyrocketing because all 3 are heavily regulated & subsidized by the federal government.
The better thing to do is get on a budget, save enough for a bigger down payment, then get qualified for a 15 year mortgage, which has a lower interest rate, no mortgage insurance, and you pay it off in half the time or less if you stick to your budget and pay extra every month.
At the very least get on a budget and save enough for a 20% down payment to avoid mortgage insurance. Then stay on that budget and pay extra every month towards principal to pay your house off years ahead of time. Better still, put 20% down and get an interest only mortgage. That payment is less than a 30 year fixed, butt make the same payment as a 30 year fixed and you're paying the principal down much faster. If you can't wait, put down 10% but use an 80% 1st mortgage and a 10% second to avoid mortgagee insurance. Pay the 2nd off as quickly as possible then apply that money to your 1st mortgage every month and pay off your house in less than 20 years.
There are plenty of other ways to to save, but these are the easiest and most practical for most people. But the real problem is the government, inflation, and the public as well. American love to spend and few are on a budget. Few are saving.
If you really want to save and make a lot of money find a successful real estate investor and buy them lunch. Work for them. Do anything you can to learn from them. Learn how to use debt as leverage. Make mortgage debt a tool to wealth & freedom rather than be its slave, which is what the government and the elites want so they can control you.
I am a CPA and have taken financial "freedom" courses - and I thought "oh, I will just click on this video and see if she has anything new to say." I am floored. Not only does the math work, but the psychology works. If I am having to borrow on my home LOC to buy something extra I don't need....let me tell you, that is a HUGE deterrent to buying things I dont need. LOVE THIS
Right? And this isn't a slight, but, what does that tell you about our education system? The comment above you is a mathematician and economist, and he's been scared into submission by the banks, lol. The banks you can understand their motivation at least, they're greedy, and free to make money, but why isn't this in every grade 12 classroom around the world? Personal debt is collective national debt. They make so many economy shaping decisions based on housing affordability and personal debt vs wages vs unemployment. If everyone was taught this, you think it would make for one helluva strong nation.
The world is a scam.
Peace
@@Todd_G_FPVwhy is it calculated differently?
Mortgage is amortized interest and cc is simple interest
Too bad she is completely wrong. You’re still going to end up paying $60k or more in interest regardless if you borrow 10k. BECAUSE that interest charge is for the whole principle, it’s not for the measly little 10k.
Just to be clear, you are talking about two different types of loans where the interest is calculated totally different. A mortgage is amortized ( meaning you pay the interest up front) vs. a traditional loan like a LOC where you the interest is spread evenly. This is why when you pay that first mortgage payment of say $3800 and you look at the mortgage statement you see only $2 going toward the principle but by the 29th year of that mortgage when you make the same $3800 payment you see $3400 go to the principle. This is very different from a LOC or traditional loan where the interest is spread almost evenly throughout the life of the loan. This is why taking a LOC at 18% beats the mortgage rate at 7.5% because you can pay the $10K off early, then roll the cash again and again paying very little interest on the LOC and killing the interest on the mortgage. @@thomasxxxxxx2345
Great content as usual, I loved this as I am about to invest in uk property with 70k deposit (plus fees and more savings for furnishing and decorating) to buy my own place, but I am also treating it as my fourth investment, having two spare rooms for lodgers to cover this property mortgage and tax costs... and to build my equity whilst working my day job for my next investment.
First, you need to have a salary of at least 25k before you will be considered for a mortgage, that you need for properties. If you want to achieve a 75 percent yield yearly, try looking out for an investing advisory or else you will be competing against professionals themselves.
Generating returns are usually phenomenal. What would have been really interesting would be a proper breakdown showing their costs , services, investors return..
That's an intentional way to live debbie, that's the only way to become debt free. I've already paid off two previous mortgages. Now I'm working on my third and I cannot wait since it has to happen before retirement in four years and I'm already getting there the proficient way, Luckily for me my trader and coach Frost Hilda has been using every opportunity to ensure I benefit from each turn the market takes.
Good luck staying debt free as much as possible in the future.
Absolutely Zachary, contract agreement splits are favorable, I’m also exceptionally well positioned as I’m privy, so that’s a good return deal for any investors creating revenue for more interest.
I'm from the UK as well and I'm currently overpaying my mortgage each month with money from investing. I'm on a no buy this year and my goal is to have my mortgage paid off in under 3years, hopefully sooner, so I appreciate and am forever open to receiving tremendous amount of value to achieve my target.
That’s the best explanation of a liability I’ve heard Van. I would never willingly take on a mortgage liability unless I had it also as an asset. Once it’s an asset, the tax code and positive cash flow are possible!
What?
Thanks @Endeavor545🥰
You are a blessing Christy for using this knowledge to help others. Thank you for the love you show.
1st visit 2 this channel!!!!! Im subscribing !!!!!!!! Doesn't take high intelligence
You been the most honest person to help people our country something we should've learn in school with this information will help all of us thrive .....i thank you god bless you and your family
As you can see from the views, this lady is the best on this subject! Listen TWICE, tell others to listen, call you and then y'all discuss this, tell more and more. What a ministry, what a mission! YOU DO NOT NEED A FINANCIAL ADVISOR AND YOU DON'T NEED A BANK!
I would say I don’t know how I find you on UA-cam, but I know better. My husband and I have been in prayer so that we get our credit scores up and our credit record in great shape so that we can purchase our forever home. It was no one but God that led me to *Pecuniary backdoors* . I thank God for this wisdom. Bless you.
*I’m glad it works for me and i am sure it will works for you as well*
I work in a furniture store office. A problem I see everyday are young people getting the interest free financing and then buying more expensive items than then they should. The financing is truly same as cash and no hidden fees. But instead of getting a $900 mattress they get a $4000 one. They look at the $67 a month for 60 months payment and go that’s not much I can afford that. They don’t take into account all the other things they pay a month or what happens if they lose income in year 2. Or that they could have used the other 3100 on other things they need. If it is something you could save up for you should. That open line of credit affects your credit score and the ability to get other lines of credit. Don’t get me wrong the 4000 mattress is worth every penny, but people should use their credit wisely not impulsively.
You're right about spending, but not the line of credit. The LOC is like a gun, or a drill if that makes it easier... I'll actually leave the comparison up to you, but in short - don't misuse it. peace
Making use of the 0% financing when you are ready to pay cash _can_ be a very prudent way to handle this. If you discipline yourself and place the cash in a HYSA or money market earning ~5% interest and auto-draft from that, you'll have ~$600 at the end of 5 years. Of course, that $600 won't be worth as much due to inflation, but it's better than 0. It also gives you the freedom to use that money as an EF if you ever had to - it's hard to get a loan an existing piece of furniture at 0% if you did need $2000 for something. Of course, 5% interest is a gamble for 5 years long since we were lucky to see 1%+ for nearly a decade, but even 1% still gives you $100 at the end.
I'll also add that if you kept the account at $4000 for the lifetime of your financing, this makes it look even better. You'll need to contribute $40/month instead of $67/month. After 5 years, your furniture is paid off, your account is $4000, and you only needed to contribute $2400 to your account, since your account earned $1600 in interest. And again, if you ever needed to, you could treat it was part of your EF.
The flipside to this interest payment is that inflation erodes the value money over 30 years. So at some point in the future, the 3500 in monthly payment is going to feel like 1500 or less (in terms of purchasing power). But I agree with the overall message here. 8% interest rate is nothing to mess around with.
That's true. However we live in the "now" society. Anything that you couldn't get or solve just now is not acceptable. The problem is finances are not compatible with that "now" mindset.
While you are right.
The kind of logic that you're using isn't applicable for first time buyers or people downsizing. It's good for property developers or houseflippers, they can still acquire and it will likely be fine in the long run...
If its your only property, 8% isn't sustainable.
I started a Roth IRA with $2000 in 1994 and never contributed anything. I now have over 10x that. Start saving while you are young!
Thats all fine and dandy if i could afford to pay a line of credit 10k a month
if you can pay a line of credit 10k a month, you could simply pay your mortgage ahead by 10k a month. None of this woman's "logic" actually follows logic. She's doing cheap math tricks for those who can't pay attention to 3 columns at once. @@MaxStax88
God bless you I was just sitting here thinking how I need to put an hour a day in my financial education and I came through your video. Thank you so much for sharing you seem like a really smart lady. Thank you.❤
Thank you, thank you, thank you!! You made this si clear and simple! We unfortunately refinanced after only 2 years into out mortgage because they convinced us it would be "worth it" for 1% less. We were stupid because we started our 30 years over again. Now we're 2 years into that payment and due to closing costs, we actually owe MORE than if we had just kept the mortgage we had. 😢 Well...fool me once, shame on you...believe me, they will not be fooling me twice!! I never understood this before. It's clear, they don't want you to understand this!😮
Omg. I’ve done velocity banking on paying all my debt off, but never considered doing it on a mortgage. I love you! Thank you so much for opening up my eyes on a mortgage.😃
Thanks for watching!
You’re not taking into account the fact that he is still paying a $490,000 mortgage for the 23 months. The difference between the two mortgages, in terms of interest paid over 23 months, is roughly $69k for the $500k mortgage and $67k for the $490k mortgage. So if he uses a line of credit to put $10k on the principal, he is saving $2k in interest payments over 23 months, but he’s paying $2400 for the line of credit if he decides to not pay it back. So it is costing him more.
I thought the same way as you and I’ve had a discussion in another section of the comments section. I assumed that “within 24 months” meant the next 24 months. However, the saving amount mentioned apparently comes in year 29 and 30 when the borrower makes no payments because the mortgage is paid off. If this is the case, the title should say “Save $69k over 30 years”. If the house is sold before the end of the mortgage, the full $69k in interest savings is not realized.
@@gregmate2293THERE'S the catch!
I believe you are right. Lets push the idea much further, lets take 50 times a 10K loan ... wow our house is pay off after the 1st month ... but now you have to pay 50*$100 = $5000 just as interest every month ... you are not paying of the principal... this prove that the whole idea is wrong.
Bottom line, just borrow what you need and not more and pay every month as much as you can as everything you pay goes against the principal.
Interest is not “front loaded” on a mortgage. It is charged per diem on the outstanding balance. If you made a $10k principle pay down , as per her scenario, you would save $73,919 in interest over the life of the loan and pay off the home 2 years earlier by maintaining the original amortization schedule for a $500k mortgage. The balance on your mortgage will be $490k the day your servicer receives the $10k principle pay down.
also he cant put the whole 10k in mortgage cause he got other bills
The best honest video you can ever stomp on to. Thank you.
She is spot on! After several years of paying my mortgage my banker offered me a re-fi but I had to pay closing costs all over again ( about 20k). When I asked him why I had to pay such a high closing cost for a house I owned for years he gave me some excuse. Then I remembered that the equity of my home was higher than the balance of my mortgage and I told him I was considering paying it off with a HELOC and the man had a hairy baby. I went with my gut and the principal balance began to decrees at a rapid pace. I just wish I knew about this method years ago
QuickenLoans was the only mortgage company I ever did a loan with where the ‘No cost refi” actually was zero cost to us! An impressive company. Not sure how they are now, as Rocket Mortgage.
Wait, what did you do?
@@Dre_Key - Since my equity was more than the balance of my mortgage, I used my equity line of credit to pay off the mortgage on the house. Paying down the HELOC is faster than the conventional loan. Wish I knew this years ago. I would’ve paid off my house sooner.
@@kuvasz93
How is paying the HELOC off faster than the mortgage? Unless that is you were actually sending in more $$ for your HELOC or you had a bad interest rate on your original mortgage.
Or is it just because of the depositing the income check and using it as your bank account thing as arbitrage?
@@TS-om7vb- usually bc the HELOC is simple interest, not amortized. ( Unfortunately, HELOCs are now above 7%)
I started investing in stocks at 18, grew portfolio to $600k by 33. Recently, lost over 30% and want to mitigate risks. Also, plan to pay off my mortgage and want my portfolio to grow. What should I do for stable cashflow?
Dont think here is the place for personalised investment guidance. However, I suggest consulting with a reliable advisor to ensure appropriate investment planning.
Right, a lot of folks downplay the role of advisors until being burnt by their emotions, no offense. During the covid-outbreak, I needed a good boost to stay afloat, hence researched for advisors and thankfully came across one with grit. As of today, my portfolio has grown by 25% every quarter since Q3 2020.
this is all new to me, How do I find a suitable fiduciary advisor, can you recommend any?
I've stuck with the popularly ‘’Melissa Elise Robinson” for about five years now, and her performance has been consistently impressive. She’s quite known in her field, look her up.
Thank you for sharing, I must say, Melissa appears to be quite knowledgeable. After coming across her web page, I went through her resume and it was quite impressive. I reached out and scheduled
Thank you for helping me understand. You are a blessing.
Thank you for sharing your knowledge and candor. You're very helpful in helping me explain this to my wife.
Christy you rock! In 2 months time I have paid off all credit card debt. My car is next, then will pay off mortgage. Your techniques are simple and they make sense. This is the first time in my life that I am in control of my finances!!
Do not send extra money to speed up a car payment. You could wreck the car tomorrow & the insurance company will not give you anything more tham the depreciated value.
I've watched countless videos on this topic. You need to know that you are a shining star. The clarity and articulation and trouble you take to to display the figures on your white board puts so many of the gurus out there to shame! You are a gem.. Thank you.
Thank you so much!
I have about $10,000 in credit card debt & was wondering if I could do the same thing to pay it all off. I have no mortgage. I just recently found your channel & subscribed. Thank You so much for making this easy to understand.
She has a video on what your asking. Check through them.
I adore you! And so wish I came across this information when I bought my home. But I will share this info! And everything else you teach us!!
Ma'am,
You are the BEST UA-camr I have EVER seen on personal finance when it comes to mortgages, you are a GODSEND to people like me who they are CONSTANTLY trying to screw us over
Mortgage rates are currently at an all time high since 2000(24 years) and based on statistics on inflation, we might see that number skyrocket further, a 30-year fixed rate was only 5% this time last year, so do I just keep waiting for a housing crash before buying or redirect my focus to the equity market
True, I mostly just buy and hold stocks, but my portfolio has been mostly in the red for quite awhile now. Unfortunately to be able to make good gains, you’ll need to be consistent and restructure your portfolio frequently.
This is precisely why I like having a portfolio coach guide my day-to-day market decisions: with their extensive knowledge of going long and short at the same time, using risk for its asymmetrical upside and laying it off as a hedge against the inevitable downward turns, their skillset makes it nearly impossible for them to underperform. I've been utilizing a portfolio coach for more than two years, and I've made over $800,000.
my partner’s been considering going the same route, could you share more info please on the advisor that guides you.
There are a handful of experts in the field. I've experimented with a few over the past years, but I've stuck with ‘’Rebecca Nassar Dunne” and her performance has been consistently impressive. She’s quite known in her field, look-her up.
She appears to be well-educated and well-read. I ran an online search on her name and came across her website; thank you for sharing.
We’ve all been bamboozled! This lady is a genius! I wish I saw this 10 years ago
You are the hero we didn’t know we needed. I just bought our first house last month. We paid 530k at an increasing interest rate each year until we reach 8.1%. Thank you for sharing this information. Sending love today.
Wow! Astronomical interest! Thank you for sharing and for your kindness
Here in California interest fixed conventional loan can be 8.25% but still worth buying that property! Best wishes & thanks Vanntastic!! Cheers 🥂 ❤
@@albatross8 OUCH! Thank God for LINES so you can avoid that 8.1%!
Anytime you buy into an ARM, you got screwed.
Unless you pay it down@@CompetitionSportsNetwork
Okay I'm just going to have to save some of your videos to an outside source cuz you're really putting it down on here I really enjoy watching your videos right now I don't have a mortgage but I sent it to friends of mine that do thank you for what you're doing by the way it's good information to know wish they would teach this in high school
All that’s missing is Income! If you have the extra 10k, just send it to the mortgage as a principal payment and you can avoid the shell game.
Exactly you still have to throw that 8000 expenses on the LOC. Why not just throw the extra 2000/mth on the mortgage instead of all these mental gymnastics.
Do the math and you'll have your answer.
@@Boats29 because paying simple interest is still WAY BETTER then paying compounding interest... that's why!
I just sold a property in Portland and I'm thinking to put the cash in stocks, I know everyone is saying its ripe enough, but Is this a good time to buy stocks? How long until a full recovery? How are other people in the same markt raking in over $200k gains with months, I'm really just confused at this point
How can I participate in this? I sincerely aspire to establish a secure financlal future and am eager to participate. Who is the driving force behind your success?
No, stocks are a bad a idea.
A smarter idea would be to reinvest into another property or 2 or three depending on how much you sold for. Stay away from the stock market unless you know what you’re doing. Much higher risk! Stick with real estate.
Buy gold is much better and safer than stocks. Put some in Roth IRA, high yield saving’s accounts, HSA(health saving’s accounts, Certified CD’s with 4-5%…ect) are best to considering. Be careful not to listen to no one online.💜🇺🇸🙏!
Markets been really good recently. I invested 190k in August and have seen a 31k increase. Wish I had placed more in, but I'm now weary of a fall if I buy now. In case you're interested, this is an index fund that is NOT managed. I do have managed funds, but none of them getting that type of return. Makes me think"what am I paying these people for"?
She is so right I bought my 250k home in 95 with a 15 year Mortage had it paid off in 8 years . Now I am saving $3000 a month I bought a second home as rental Its paid off also I have ZERO debt and my monthly bills are on Auto pay , It's so nice not having to white all the checks every month and have to scramble to pay them living Paycheck to Paycheck. I pay Cash for Everything I own 5 Cars ( Three 60s classics), One Airplane , Life is good if you Smart , Daddy did not raze No Fool . Boomer Here in So Ca.
NICE! @Bob
Boomers could literally close their eyes and buy any real estate and make money. Generations after you had to work literally 3x to 5x harder or earn 3x to 5x more ...for the same exact jobs and assets. Flexing as a boomer is pathetic.
Oh course you had to be a boomer. The ones that f ed us all. Took away our pensions, rigged the game so us gen x and millennial have to deal with the consequences. Thanks a lot.
Christy, thank you for bringing this to the public.
I have a HELOC and two rental property BLOCs. I have used and reused hundreds of times to buy cash flowing properties. LIFE CHANGING when chunked properly. Velocity banking is a game changer. Thank you so much!!! ❤
Thank you for sharing!
Is the personal LOC she mentions the same as a HELOC?
@@ricardojc77 -- No, but you will need a decent credit score to get a personal LOC.
@@ricardojc77 - No. The personal LOC is not tied to your home or home equity.
The LOC is a personal line of credit, its seperate from your home.@@ricardojc77
Every High School student in America should be required to subscribe to your channel.
Amen!
OK, I’m kicking myself right now because I have used this concept in the past to pay off credit cards and car loans, but it never occurred to me to do this to pay off my mortgage 🫣
In my 20s I ran up close to $30k in credit card debt and used this basic same concept to pay that off by transferring it all over to a zero interest card and using most of my income to pay down that card before the interest kicked in about a year and a half later. Now I use a cash back Visa like my checking account to pay for everything and always pay it down every month so I never pay interest, and in addition, I always get about $400-$450 per year in cash back from the Visa.
So this video really hit home because I thought that paying extra toward my mortgage each month was the way to go, but now I’m sad because I could probably have nearly paid off my mortgage using a HELOC……😢. I’m 12 years in with at least $200k in equity with about 80k left so now I’m gonna try to pay off my mortgage in the next couple of years…..here I go!
So today's rates are 7% now?! Oh my. I can't talk I have the 4%. Your a blessing Christy. After we tackle the housing market next the car, then insurance😂
You are an angel from the heavens thank you so much!
I feel so much better.
I never could imagine that we could afford to pay off our home and avoid all that crazy interest on our $307k home with a 5.99 interest rate that would have forced us to pay 662k for! I refuse to buy the bank another home and I’m going to get on online and start looking for a second job (part time) We really need to find a flexible side hustle for both my husband and I so that way we have extra funds to really attack this mortgage.
5-7 years is my goal now! we might actually have a chance now Thanks to you!
Can’t wait to be financially stable and debt-free so I can spoil our nieces and nephews!
Thanks to you Vann I just started my velocity bank this week, and I see the light at the end of the tunnel.
At the end of the month in this example, mortgage principle is reduced $490K, but 8K of expenses is owed on the LOC at 12% vs. If the 8K were in the mortgage balance it would have been at 7.35%. Now in month two, you could start paying down the 8K owed on the LOC. Assuming interest is calculated on the daily balance on both the mortgage and the LOC, wouldn’t it be better just to apply the 2K in disposable income to the principal on the mortgage each month?
What if there is an emergency ‼️
@@tosinpeter9466Will you either have an emergency fund or you don't contribute the additional to the principle You're not entitled to pay more than your monthly payment.
@@tosinpeter9466 Use the credit card or HELOC for an emergency. Again it’s an emergency so this is worst case scenario. Extra principal payments, not this velocity nonsense is the way to go
You can pay extra each month but you start with 2k. Her example you start with 10k. Every mth you put 2k extra on the principal. Her example you put 10k every 5 months on the principal. Her example you have a LOC/HELOC for emergency. Some people won't put the extra 2K on to the principal because they worry about having emergency money. So having a HELOC /LOC takes concern away. I hope this helps.
@@smmasongt the way interest is calculated with HELOC/LOC/CC is different then a mortgage.
How are calculating the interest its not the same.
With simple interest loans, the interest is only applied to the principal, while with amortized interest, the interest is applied to both the principal and the accrued interest.
I cried when I was signing my papers and I saw all of my mistakes after I sold the property. SMH. Schools don’t teach us what we need to know. 😢
Schools are not much more than indoctrination centers, intended to create obedient workers in factories. You know,....mindless drones who are taught only enough to keep the lights on and the machinery running for the real 'owners' of this factory called 'Society'. It's been this way since at least the dawn of the industrial revolution of the mid-1800's. The notion that the youth are receiving an 'education' at school is a comical farce. As the great comedian and social commentator, George Carlin, has stated, (and I'm paraphrazing) "The 'real' owners of this country are not interested in having a population of people who are sufficiently well educated as to realize how they are getting screwed by their government, and the government's owners, who threw them overboard about 70 years ago". Furthermore, research has shown that despite significant increases in spending on 'education' in America over the last few decades, the students are getting dumber and dumber, scoring ever lower in standardized testing as compared to a multitude of other countries around the globe. So, if it's not a question of money, might it instead be that those in power are altering the curriculum and the standards to which the students are to be held? Where I live in Canada, I have recently been informed that if a student fails a grade they get passed on to the next grade anyway as opposed to having to repeat the failed grade, as was the case back when I was a youth. Is it any wonder then that the whole thing is circling the drain faster now than ever before? Good luck America. By the way, it's not much better here in Canada, so please don't get the idea that I'm just picking on the US of A.
It's not the school's job. It your parents
Schools teach you to keep the rich richer. Get a 9-5 for the millionaires.
Be honest, I'll bet if schools offered personal finance classes, most kids wouldn't even sign up. Second, if she taught the class, they'd all be worse off for learning something so flawed.
Funny thing is it used to be taught.@@dougprw1110
You are adding value and setting people FREE thank you the Gems are dazzling 🙏🏾
@LionessSu I pray to GOD people are getting FREE! Thank you
Yes I perceive you have a genuine authentic mission and purpose from The Lord in regards what burdens, distresses and enslaved many people.
May thee Lord continue to bless, protect and keep handing you His Wisdom to free His Children and many others.
Thank you I have passed your channel on to others including me family.
Your channel resonates as a Child of the Kingdom of God giving wisdom and liberty regarding finances simultaneously and comes from a wholesome righteous source.
Please keep them coming it's helping so many people like myself.
Obvious the Lord has chose you for such a time like this. 🙏🏾
THANK YOU SO MUCH! Your approach and demeanor to handling finances is one of the ONLY things giving me hope these days! GOD BLESS YOU Dear Lady!!
How precious is that? Thank you so much!
OMG Ive dug into amortization schedules and found many ways to overcome awful 30 year mortgage interest. Never have I thought to use a line of credit. Absolutely brilliant 🎉
@ZimZam131 that is an extra payment to principal. Are you saying it's better to do cash VS line of credit? The method also assumes cash flow and discipline
@@realestatemindset Both methods assume cash flow and discipline. You’re not creating money out of thin air.
And yes, it’s better to pay cash straight to the $500k principle than take out another line of credit, unless the new line of credit has lower interest than the original.
The title of the video is deceptive. The $69k of savings takes 30 years to realize, not 24 months.
@ZimZam131 ahh, now I see your point, but also, it's not 30 years. 40k on average loan and rate would drop it to 22 years. From this point, decisplne really comes into play, bi-weekly or extra monthly payments will reduce the term even more. You probably know that also. Bottom line, you got to go all the way if you plan to pay off your mortgage early. Still I find it intriguing how an LOC is way better VS an 30yr amortized mortgage. Crazy how much banks make.
At first i thought this was a joke and maybe it is. You still have to pay interest on the $490K so you are only reducing the interest about $15k over the life of the loan. Your savings, assuming you are not paying interest on the LOC, is only 7.5% on the $10k.
That is not correct @@anthonyscott6972
You are offering so much value in your videos. Thank you so much.
Its a master class on how to navigate effectively through our everyday finances and credit decisions.
Thank you!
Oh my! Thank you so much for this ! I’m thinking about buying a new home and this is perfect ! Eye opening video thank you so much !
Thanks for what you mean to do for us all. I’m so dumb with regard to finances.
I paid off my 210K house in 36 months using velocity banking. This stuff works. I used 2 LOC's and I was lucky to get two CC offers for 0% and .9% for 18 months each. So the whole time I put my living expenses on the CC's and made huge chunks with the LOC.
Thanks for sharing..
thanks for this I just did this put all my living expenses on 1 CC. A few other living I had to put on bank draft with a checking account. Which I hate but I had no choice. I will look into this when i start back house hunting next year.
It works. It's rotating and revolving loc and 0 percent CC
It works. 0 percent CC and LOC
Bless you, and thank you so much for this information. I wish I had known you when I started off. We've had to scrimp and save for decades, living on next to nothing, and I don't drink, smoke, take drugs, go out partying, have anything designer, or holidays. But now we are financially free after going round the houses for decades. But I'm blessed to be debt free on a tiny pension.
This should be taught in schools, as Jewish children are taught to be savvy with their money. But our systems won't allow it because then we will see where we are being ripped off, left, right, and centre, everywhere we turn.
My brother, you needed this! I already had ideas of raising my score. But I just found more ways because of this. *Pecuniary backdoors* are such a blessing, keep going frl!
Thank you *Strategic techies* so much for you’re advice as my credit score is 771 and wanting to increase it as much as possible as l’m just trying to look out for my future. I’ve subbed you.
I haven’t seen all of your videos yet but I think what would be helpful is showing the Mortgage Amortization Graph. That way people can visually see when they first get a mortgage the majority of their payment goes towards interest AND it really doesn’t even out (50% interest 50% principal) until mid way of the loan period. Also showing an Amortization Calculator and plugging in early principal payments, annual or monthly can really be effective. This is the way I figured out the insane amount of money the banks were collecting in the beginning of a new loan. Motivated me to add principal payments monthly and anytime I had extra money. I do not have a financial background but these tools showed me everything.
Wow! I never knew I could use a line of credit to pay off a chunk of the mortgage.😮 I really appreciate you! ❤
Do not do this…this advice is horrible and her math is wrong
I haven’t run the difference in cash flows or FV of each one of these legs but I’m getting the feeling that it would just be cheaper and easier to permanently buy down the interest rate. At that rate and home price you could probably buy down 2.75 points for about $26k. You’d have a 4.6 interest rate and you won’t have to pay back the $10k plus 26 months of interest.
I worked in banking in the 80s. Interest rates on mortgages were between 17 and 21 percent.
I had no idea interest was so high back then!
@@soniarena5250houses were also less than $100k. Many places closer to $50k
how could people afford a house payment? or, what percent of their income was going to their house payment?
Great video! Straight forward and easy to understand!
Will be implementing this immediately!
Thank you so much for sharing this information, I love your channel!