Hi Sam. Can you add the latest version of the calculator that fixes the first day payment issue? I have version 2.0 which doesn't factor the first payment.
Would there be any down side in using the same strategy while splitting the mortgage payments to bi-weekly payments? I would assume that it would be beneficial in adding in one extra mortgage payment per year. Thanks!
Not always. For instance, a 1st lien HELOC is very comparable to a traditional 30 year mortgage rate. In certain instances, we've seen the HELOC rate be cheaper than mortgage because the rate index is different than the mortgage
you messed up big time when you lowered the rate in the final example. it was not apples to apples because you didn't increase your living expenses in the left spreadsheet to compensate for the lowered monthly mortgage payment in order to keep the monthly cashflow at $1,500. fix that, and you'll see the results will be much closer. Definitely misleading.
I like his logic and plan to implement as soon as construction of my home is completed in April😅
Hi Sam. Can you add the latest version of the calculator that fixes the first day payment issue? I have version 2.0 which doesn't factor the first payment.
Mr Kwak.
Would we be doing 20k payments out of the heloc straight to the mortgage and repaying the heloc and then repeating?
Thank you
Would there be any down side in using the same strategy while splitting the mortgage payments to bi-weekly payments? I would assume that it would be beneficial in adding in one extra mortgage payment per year. Thanks!
Hey there, with our strategy - making the bi-weekly payments become pointless because all of your cashflow is being used to pay down the debt anyways.
Except the helocs are at higher rates.
Not always. For instance, a 1st lien HELOC is very comparable to a traditional 30 year mortgage rate. In certain instances, we've seen the HELOC rate be cheaper than mortgage because the rate index is different than the mortgage
you messed up big time when you lowered the rate in the final example. it was not apples to apples because you didn't increase your living expenses in the left spreadsheet to compensate for the lowered monthly mortgage payment in order to keep the monthly cashflow at $1,500. fix that, and you'll see the results will be much closer. Definitely misleading.
Get ready for part 3
Trust no man's system.