If anything, it'll get worse. Very soon, affordable housing will no longer be affordable. So anything anyone want to do, I will advise they do it now because the prices today will look like dips tomorrow. Until the Fed clamps down even further, I think we're going to see hysteria due to rampant inflation. You can't halfway rip the band-aid off.

Home prices will come down eventually, but for now; get your money (as much as you can) out of the housing market and get into the financial markets or gold. The new mortgage rates are crazy, add to that the recession and the fact that mortgage guidelines are getting more difficult. Home prices will need to fall by a minimum of 40% (more like 50%) before the market normalizes.If you are in cross roads or need sincere advise on the best moves to take now its best you seek an independent advisor who knows about the financial markets.

I will be happy getting assistance and glad to get the help of one, but just how can one spot a reputable one?

There are advisors in cities around you but I needed services of one who can guide me irrespective of location. Catherine Morrison Evans comes highly recommended especially in times like this. I am hedging and haven't lost much to the recession. I found her in 2020 when the market was at an all time low. Look her up and thank me later.

I am on her site doing my due diligence. She seems proficient. I wrote her an email and scheduled a phone call. Thanks for sharing

Did you use this method?

@@Izzy267NZ I did huge prepayments (took on extra work for few years) and was lucky enough to lock into a really low interest rate at the time. The big monthly prepayments ($1500+ my regular payment) really made it go down fast. I was super focused on it though. Now I'm focused on retirement savings because I'm not quite where I want to be. I don't want to live on Ramen noodles when I retire, but I also don't want to travel the world or anything either. Lol

Why didn’t you put that money in stock market? You would have some profit. During the Covid the rates were super low, people were getting refinancing. It was basically free money with 2.2 - 2.5% interest rate.

@@julget3648 It is a far better rate of return to pay off a 25 year amortization with current interest rates rising fast. Plus, the value of my house has now risen to almost 3 times what I paid for it, and I now have no mortgage. Way more profitable than a 2% return on higher risk stocks. I also wanted to semi retire sooner by paying off my mortgage.

@@purplenaturellc733 this is incorrect due to the trading fees it would cost per investment transaction as I'm not from the US. I do have some investments in equity growth funds which are doing well. I believe in balance and security so I'm personally more comfortable with a paid off mortgage and investments on the side.

Thats what I am doing, after my divorce I refinance at a lower interest rate and did a 15 yr instead of 30yr.

Maria Brisbane helped me secure HELOC with 650 credit score

​@@Rainbowsun1check her out on Google or check her website

Sure we are going to talk about helix’s in this video but I’ll give it a chance

​@@Rainbowsun1you still paid mostly interest at first

I understand that tomorrow isn't promised to anyone, but investing today is hard for me now because I have no idea of how and where to invest in. I would be happy if you could advise me based on how you went about yours, as am ready to go the passive income path.

@@obodoaghahenry9297 Even with the right technique and assets some investors would still make more than others, as an investor, you should've known that by now, nothing beats experience and that's final, personally I had to reach out to a stock expert for guidance which is how I was able to grow my account close to a million, withdraw my profit right before the correction and now I'm buying again.

@@Manuelcliford Sure, My advisor I'm in touch with is "Julie Anne Hoover" , she works with Smith incorporated and interviewed on CNBC Television. You can use something else, for me her strategy works hence my result. he provides entry and exit point for the securities I focus on.

@@marcelrobert9569 I just looked up this person out of curiosity on the Google internet; surprisingly, she seems proficient. I thought this was just some overrated BS, appreciate this.

No one cares

BOOM!

Bad ideas to pay off mortgage. How about never pay it off and use equity fir more properties instead and make more money live rent free

@@klk538 interesting... That's exactly what we teach on our channel. So who are you arguing against here?

I can see how this strategy would be incomplete without using your new found equity increase to investment opportunity and therefore pay down your increased debt! Crazy but i think it woukd work. @klk538

Your an inspiration 🎉😊

How much was your mortgage and what is your salary? Those numbers matters as well.

@@ToOpen6seven I make $370k per year and my total mortgage was for $360k. But I pay $70k for my children’s schooling per year while saving $150k in their 529s.

@@imdoc7872 what were you doing to be making 370k a year

@@aminbalank9962 I’m a doctor. That’s my salary.

EXACTLY!

Fr Fr! I would have loved to learn in high school that I can get a HELOC against the value of my home. Who needs equity in a home “equity” line of credit? Not me!

No, it really shouldn't. I can understand why most millennials and zoomers say they'll never own a home or retire.

​@@brettmortenson5181Maria Brisbane helped me secure HELOC with 650 credit score

​@@AnalyticalMenacecheck her out on Google or check her website

You can also call your bank and see if they would allow you to pay your monthly mortgage payment via bi-weekly. You gain one extra payment at the end of the year.

This seems very fascinating but has it changed because of increasing interest rates but especially increased inflation?

Nice that’s beautiful

@@brianesbaugh6897 my heloc rate has gone up a ton. I’m in year 11 of 3.25% and haven’t paid a dime extra. I’m buying up as much as I can in stocks. Owe $225k on the house and invested $40k last year in the bear market. Hope to do that much or more this year. We make $220k (Dual income) before taxes but live on about $10k a month.

I have been thinking with current technology of online banking, why couldn't I do DAILY payments and save a ton, especially if I can increase the amount paid over the monthly mortgage amount. I just refinanced and was told I can make extra payments without penalty. Why not just schedule daily payments? Has anyone ever done this? I couldn't find much by Googling it but when I did it with a mortgage calculator it seems to make a big difference, I can pay off a 30 year loan in just over 10 years by adding a few bucks a day.

Maria Brisbane helped me secure HELOC with 650 credit score.....

Wow 👍👍👍 congratulations!

@@charlenelynch6505 Thank you very much!! It was quite an accomplishment!

Congratulations 🎉 👏 🎉 well done

@@princessmdify Thank you very much for that!

Well done... I paid up in 7 nd a half... I'm on the second debt, how go for 5years?

It’s very simple, so basically this mortgage vs heloc is like life term insurance and whole life insurance. Having whole life is like having a bank account, the money you take out you eventually put back in and the interest you have also goes back into the account so it’s almost like paying yourself and going in debt with yourself. Very simple but also dumb because what happens when you owe yourself and can’t pay yourself back??

@@Christorment5 The people who benefit most from whole life are the agents who sell it. The commissions are some of the highest of any insurance or investment product.

But will the banks let u do it? Wont they charge hefty penalties for paying mortgage early?

@@jaspreetbuttar332 Most single home mortgages have no prepayment penalty. FHA and VA loans can't include them and if mortgage company does include them they can't last for more than 3 years. Mine is with Rocket and I've paid extra principle for more than a decade. Just $60 extra a month took almost a year off the term of a 10 year refi.

I’m 99% of people

Im only paying 200 more on top of my mortgage u think i should pay more

Per retired at the age of 40, Too bad, i'm 40 and just bought a new home. thanks for your advices, i will follow it as much as possible.

I just turned 25 and I’m buying a house soon. As you said, I did all the calculations on paper and probably won’t be able to get a brand new car or travel every year but it will feel great to cut the debt from 30 years to maybe 10-15 and be debt free in my late 30s/early 40s

Good job explaining all this. 👍

@@miguelbernal1435 way to go! Im 6 year in my journey to pay my house im 14 years. Puttin more than asked to pay principle faster. Still investing moneu eslewhere too cause life made me learn not to put all my eggs in the same basket !

The bank already fix your monthly payments for 360 months. You can pay them off in 30 years or shorter but it won’t change your total interest. You just save your current money to pay your future bills. And always future money is cheaper than current money.

Right, this entire presentation is bogus. He goes from bemoaning front-loaded interest, which yes, sucks. But then jumps to an example where he borrows 90% of a magical $300K in equity to create a $270K HELOC. Newsflash - there is no $300K equity in almost any mortgage that is still in the year 1-7 age (some coastal & crazy markets excluded). A point to be clear on - a HELOC is borrowed against EQUITY, not against VALUE. Consider a 30 year, 5% mortgage with 10% down on a $300K house. End of year 7, loan principle is $237K. To grab a 90% HELOC to cover that, you would need $263K in EQUITY, which means a home VALUE of $500K. Maybe the home appreciated 67% in 7 years? That's 8% a year, with no corrections, so a very big maybe, but even then you're already 7 years into the front loaded mortgage interest! You've already missed the big payoff he is selling! There is basically zero scenario where this HELOC strategy could possibly work any earlier than year 7, and even then only in a perfect world of ever-increasing home values. And, that leaves out the very real chance the bank could call your HELOC. He downplays that, but it creates a 30 day window where you come up with $237K cash, or you're on the street. Do you really want to run that risk? Misery loves company, so a market downturn + housing downturn + job losses all ride together, so the circumstances in which your loan WOULD be called are all during the worst possible time. Also, the cash swap to credit card strategy requires so much discipline and timing, it's essentially impossible in the real world to repeat month after month for years, and leaves you so illiquid for other emergencies, it's just terrible, terrible advice. Also, many HELOCs are variable rate. Also, many have pre-payment penalties, unlike mortgages. This advice has so many landmines, that the cash-strapped people this advice is targeting are almost guaranteed to get sideways on it. The only good news is that almost no bank is going to engage in it, because you'll never have enough equity early enough in your loan to come anywhere close to the savings he is selling. So this is really just a 20 minute smokescreen. Just pay more towards your principle if you really hate mortgage interest. Or better yet, invest the difference in a Roth IRA wit superior tax advantages or a brokerage index fund that will likely return more than your mortgage rate over time.

That's what I was thinking, thanks for the explanation

Agree, that’s what I was thinking too. I’m like did I miss something here, where did this guy get 270k from? Just like 💨 out of nowhere says his home gained a value of 270k. Shady stuff

@6SpeedsGood What about putting the smallest amount down then on the 1st mortgage payment; give as much as you possibly can ?

@@6SpeedsGood if you have not paid extra payments, even theoretically it's not possible to pay down a 30-year mortgage in 7 years

Someone gets it ;)

Yes but if you don't have a lot of equity in your house then you have to pay the original mortgage as well.

@@mikeandsues2752 Hi Mike and Sue, we have many clients who get started using our strategy with little to no equity! There's still a way!

What about lower income... like $1500? Can they pull this off?

@@TheKwakBrothers Can you elaborate?

I am doing the same and adding as much additional principal payments as I can but I dont see the loan being paid off much faster

@@paulmasonmiller then you're doing something wrong!! If you make one payment extra a year on a 30-year mortgage you will cut off 7 years right off the bat!! You need to call Sam Kwak I know him personally he's awesome and so intelligent with money

You clearly missed the point there are no extra payments being made you're paying the same amount just threw a different Source instead of dropping it into your checking account you're dropping into your HELOC account. You are not understanding what was just demonstrated

Same!

​@@paulmasonmillerMaria Brisbane helped me secure HELOC with 650 credit score

BOFA is a den of thieves.

Maria Brisbane helped me secure HELOC with 650 credit score...

check her out on Google or check her website.

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This isn’t the best example. Making $23k a year with a mortgage of $29,500 is like making $312k/yr and having a $400k mortgage.

Average mortgage is close to $800,000 now, not a realistic comparison in this economy at all. Have a good think about it and try again 😅

Girl I’m glad you got it, I’m so lost

​@@debz7682Maria Brisbane helped me secure HELOC with 650 credit score

​@@debz7682check her out on Google or check her website

Congratulations!!!

exactly. When I look at the title of this video "Paying off mortgage in 5-7 Years", I was like "Woah, it's must be some secret hack, let's see what's going on here". But after spending 25 min listening to this, I realized that the core solution (at least in his case) is to put $6000 into paying off the debt (doesn't matter HELOC or mortgage). If I had $6000 every month to do that, I might as well use $1000 to pay the mortgage and $5000 to pay the principal, then I'd pay off my $200,000 mortgage in just 3 years. If I misunderstood the video, please explain it to me.

@@QuanNguyen-og6pq You didn't misunderstand, the video is garbage. If you owe $200K, that's $5,555/month for 36 months, no interest. There is no magic here, just smoke and mirrors while simultaneously putting folks into a seriously illiquid position in life, while also putting them at the mercy of a bank call on the HELOC, a catastrophic position for almost anyone. Good times! And if your mortgage rate is below 4 or 5, you're even better off putting that extra $5k into a Vanguard fund!

​@@6SpeedsGood Thanks for clarifying.

Not really. Just set an autopay on your credit card so you don't screw up and end up paying interest.

Thanks for getting it! Lol

@@TheKwakBrothers The math works out, I ran an 84 month model. Exactly what Dan said, without those conditions it's pretty risky potentially having to come up with the balance unless the terms are concrete. Was about a 35% deduction for interest paid even compared to a 15 year.

Its not about the interest rate on the HELOC or the 30yr Mgt. Its about time to pay off your Mgt and using lazy money accumulating in one's checking account.

@@marshallwise1763 doesn’t that all compute to having a low interest rate?

@@keysoteriq2590 CMG, even during the 2007 crash they kept the HELOC open. Reason, they only work with A paper people.

Maria Brisbane helped me secure HELOC with 650 credit score

An extra payment a year will pay it off in 22 years.

Yes much simpler

@@MichaelDavis-uu9zh pay more on principle every month

@@emmanuelsepulveda2468 how many extra payments a month shots it take for 7 years?

@@emmanuelsepulveda2468 we are doing the same, and we’re also halfway - and my name is Emmanuel too ! I had to double take 😂

Correction if your income is about $10,000/month then by putting everything into heloc each month you would save $9,200x3%=$276/12=~$22/month and then following month the difference in interest goes down to YOUR INCOME - EXPENSE - INTEREST. So for example 10,000-6,000 expense - $500 = 3,500 x 3% / 12 = roughly $8 per month. Really penny pinching with all the risk associated

My thoughts exactly

Thanks. I was starting to get confused thinking I've done the wrong thing 🇦🇺

I'm in the UK and just stumbled across this - please could you elaborate on the offset credit card strategy?

@@matthewhook3375 Sure. The basic premise is to use your credit card to maximise the length of time you keep the most amount of money in your Offset Mortgage account so as to minimise the amount of interest you pay on your mortgage. So you make all purchases using your credit card and don't use your debit card at all, because if you do, money will go instantly from your account. If you use credit card, you have 1 month before you have to pay, and this keeps more money in your Offset Mortgage account every month. And since interest on your mortgage is calculated daily, the longer you keep the most amount of money in your account, the less interest you're charged. And if you pay off the entire balance on your credit card each month, you will maximise the benefits of this strategy. Another tip is to change all your monthly direct debits / standing orders to a day or two before you get paid your salary. This will keep the balance in your account to the maximum level each month, thereby incurring a reduced interest charge. This is the Offset-Credit card strategy in a nutshell. In fact, you can do this with a regular bank account too. Keep the most amount of money for the longest time to earn the most interest per month.

@@theopenrepublic thank you for the explanation, I guess my next question is what is an offset mortgage account? I haven’t come across these. I already use an Amex cash back credit card for my day to day spending and my salary is paid into a current account, where it earns a pathetic amount of interest until it goes out to pay the Amex bill at the end of the month.

@@matthewhook3375 With an Offset mortgage, you use your monthly savings to "offset" the amount of interest you're charged each month on your mortgage. So if you have £10,000 in savings and a £100,000 mortgage, you pay interest on £90,000 (£100,000 - £10,000). You can then use the saved interest to (1) reduce the amount you pay monthly for your mortgage, or (2) reduce the term of your mortgage - so you pay if off early. The more money you have in savings, the greater the benefit you derive from offsetting. Another advantage is that when interest rates go up, you get a bigger benefit from the offset. You will also save 1,000s of £ in interest over the lifetime of your mortgage. The big drawback is that you don't earn any interest on your savings - because the interest is being used as the offset. But TBH, the interest rates are so pathetic at the moment that you aren't really missing out. If you want to know more, check out Barclays, Coventry building society, or Clydesdale Bank. They offer offset mortgages and have more information on their websites. There used to be more banks offering offset mortgages, but in recent years, many have stopped offering these. They are well worth thinking about if you are looking to re-mortgage.

@@theopenrepublic thanks again for the explanation, I’d never heard of these mortgage products. Unfortunately I’ve recently remortgaged to Lloyds on a 10 year fix at

Exactly. All we do is overpay our principle every month by just $20. We closed April 13th. First payment wasn't due until June. We've already knocked 3 1/2 YEARS off the life of our 30 year fixed mortgage

You have to do the math based on the rates you can get. I have a 2.24% HELOC. The lowest 15 year mortgage I could find is 2.375%.

@@brianparks8321 in my case I bought down the rate to 2%, and just closed on my 15 year mortgage.

Depending on the balance it will cost a lot more to send extra payments. If you send 10-15k chunk and pay down the heloc it will be much beneficial than to send 416 dollars of extra payment monthly for 2 years. The amount of interest in 2 years for 10k will be 420 at 4%. But those 10k will eat at the principal and reduce your interest greatly

I'll suggest you find a mentor or someone with experience to guide you especially in this recession..

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He didn't explain that part very well but it's because your mortgage is amertized interest he did explained in the beginning of the video that you pay all the interest upfront. your heloc is not amertized it's a simple interest rate like a credit card accept with a lower interest rate, so your paying more money toward the balance every month and you will pay the heloc off way faster. I know it sounds confusing but once you understand how amertized and simple interest rates work it will make a lot more sense

Yes something is missing I got lost in between

From what I understand, your whole income goes straight into the HELOC, and your expenses all get paid through a points-rewarding credit card, then you draw upon the HELOC at the end of the month to pay off the whole credit card, thus paying no cc interest and gaining lots of points for travel and other rewards purchases. The big payments against the principle mean you pay less interest at the end of the month on the HELOC, and pay it off much faster. I think 🤷🏻‍♂️

It's simple; You're paying a few days of interest at the higher amount on the heloc vs. a full billing cycle on the mortgage for that $6000 in the example. It's genius.

Yes, and HELOC interest is variable! The bank can just decide at their will to increase your interest rates! It's better to have fixed mortgage rates rather than HELOC variable rates.

You're not missing anything, the math does not work in the video example. HELOC's are usually structured at 85% of the available equity in your house. So if your house is worth $300k and you have a mortgage balance of $250k your max available HELOC would be $42.5k.

Used a 1st LEIN HELOC vs 2nd (traditional) HELOC.

​@@quasimo1412Maria Brisbane helped me secure HELOC with 650 credit score

​@@BMLM49check her out on Google or check her website

@@albajessicalove Who?

How you achieve that ? Is it through heloc ? Congratulations

@@AzeemUrRehman No, we had an FHA mortgage and we didn't even put down 20% when we bought it. This gave me even more ambition to pay it off in less than 10 years. What we did was we paid more than requested for the principal every month and also I saved a lot out of my salary every month for this purpose. More than 50%. It took a lot of discipline and focus.

@@laurelleafr6091 So, how many additional/separate monthly payments did you make towards your principle?

@@EugeneCollins2024 I paid more towards the principal every single month for 5 years with the exception of the very first month. When i got my first mortgage bill back in 2016 i analyzed it and saw that extremely little was going towards the principal Seeing that I decided i will always pay more. towards the principal with each monthly payment. I didn't make additional payments each month . I only made the monthly payment adding more to the principal. Then in March 2019 I finished paying my car. I took that money of $ 250 every month that I now stopped paying and added it to the mortgage principal. Then ... Starting August 2020 I made sure every month my mortgage TOTAL amount was decreasing by 400. So depending on this I calculated how much i had to add to the principal. Finally starting January 2021 i made sure every payment was decreasing my total amount by 500 each month . Thus in May I had enough savings to pay off the remaining 76000 to the bank. I basically Brought the loan down from 91500 to 76000 in 5 years. Then paid the 76000 to the bank. Remember I put 16000 down when I bought it which was less then 20%. After the downpayment the loan started at 91,500.

Exactly!

@@TheKwakBrothers or compound finance charges!

@@TheKwakBrothers my home been refinanced a couple times. I went through divorce and chapter 7 bankruptcy in 2011. At that time owed around 137000. Got a loan modification it's at 3.5% 750 per month i now owe 93000. Also there's a second mortgage that went through bankruptcy also but it put a lean on the place. So I owe 93000. Plus 26000 on the lean. From my understanding I don't have to pay the lean unless I sell which I got no plan's to do. Will this Heloc work for me?also what can I do about that lean. Is there a way to get rid of it. The maturity date on the mortgage is 2050. I'll be 78 years old by then. That means I can't retire until then because there's just not enough money. Any suggestions?

thats what i was thinking??

The premise, borrow money to pay down debt, is stupid.

Respectfully Mr Taylor he explains this part very clearly! The calculation is based on the Value of the house X 80 or 90 %. What you did was I think subtract the difference of the value from what you owe and something I got lost...

What you talking about is a traditional HELOC, also known as a second lien HELOC, which functions based on a percentage of equity. A first lien HELOC works like he said, and his based on a percentage of home value.

@@gradivitshitoko9941 This commenter is describing is a Second Lien HELOC, a much more common type, which is based on home equity, the difference between the home value and the mortgage principle. This video covers the less common First Lien HELOC.

I think the point that was kind of glossed over was that by having the HELOC you still have access to liquidity. If you pay extra on a mortgage you are locking the liquidity in your equity where as with the HELOC it's credit so it can still be used for living expenses with a different interest rate model. Definitely more risky, but greater access to liquidity. I think that's what he is getting at if I understood correctly.

True altho I guess to your point tho, if your house is paid off you're not house poor.

@@jmarie7405 True and if, God forbid, you lose your job and have no income fall back on you'd still have to pay for property taxes, insurance and other home related expenses.

At that point you would be building wealth contributing to various accounts, and you would also have an emergency fund. All else fails sell the house and, or other assets.

@@blaizon at which point? this plan is based on 5-7 years where any "extra" income gained is "invested" in a single family house. The average length of time at one job is about 4-5 yrs. If in that 5 years, you are not diversifying your financial portfolio and only "investing" in your home and you encounter a series of unfortunate events, then you would indeed be left only with a house. Maybe you'll walk away with something if the housing market is hot, but if we hit a recession or low market during that period of time then you are just out of luck. I am not saying it's a bad idea, it's just not for me because it relies on the assumption that nothing unfortunate will happen. I rather hope for the best and plan for the worst and for me that means redirecting any "excess" revenue I have into at least 3 different income generating avenues.

BUT.... in case of any unfortunate events having a HELOC which is an open ended product will allow you to be able to grab any extra money at any time from it but in a Mortgage if anything was to happen to you you’d have to Refinace ( 3k average fee ) and start completely over and you’d still have ridiculous interest upfront and as if you just bought the house over again. Being able to pay a home in 5-7 years compared to the average 15-30 years is one the biggest investment you can make.

Awesome!! Thanks for your kind words!

Good point. But the benefit of the heloc was that you could also use it pay debts like credit cards etc at a lower int rate. Whereas if you’re pouring all your monthly income into your mortgage you won’t have funds to pay other expenses. I think that’s what I understood.

@@princyr5541 let’s try not to stack debt on debt on debt. If you don’t have the cash you can’t afford it.

Keep it simple, taking a heloc and sending 10 and paying it over 2 years. That by itself will be much greater savings than doing 10k spread out over 24months.

@@PNWresistance then you would never have a mortgage.

A HELOC, just like the credit card usage he mentions, is only of extreme benefit to those with "tolerance to risk."

Actually Pat, I've been teaching this concept since 2015. Out of 1000+ clients, we had ZERO clients who had an adverse event on their HELOC. (HELOC closures, freezes, or limit curtails). There are fixed rate HELOCs and I have closing statements to prove it. You just need to know where to look for them ;) And I don't think you understand the strategy. Most people who dont understand don't want to understand. They're often fixated on what they already know OR they made up their mind that they're right no matter what - never wanting to learn. Usually, these types of people stay average all their life. They care more about being right than growing/learning. So you get to choose Pat...

It didn't make sense to me either.

Idea is to deal with daily interest vs amortized interest. HELOCS are daily interest, meaning, they arent front loaded but divided daily instead based on how much you owe. As long as you spend less than you make, which you should be doing, you are paying extra towards principal of your “mortgage” per payment. For example, lets keep numbers simple. You make $5000 a month. You have $1000 in bills. Mortgage payment is $3000 but minus taxes and insurance say principle interest payment is $1500. Lets say anything not used goes towards mortgage. So you are sending $2500 to a HELOC OR MORTGAGE. On amortization schedules, during the first 7 years or so, a MUCH higher chunk of the $1500 you paid, will go towards interest, and rest would lower your remaining debt. Imagine if of that $1500, MORE money during the first 7 years was going towards balance; because it’s simple interest. It’s calculated daily and evenly throughout the term whereas amortized loans are structured to take more interest at the front half of the loan. Thats the simple answer.

We personally have a friend who owns four homes and has done this very strategy to pay off two homes already and is working on his third. He has coached us over the past two years on how to do it, and we are finally going to start. It's complicated, but it works. You have to have decent cash flow and be very disciplined to be successful.

@@TheKwakBrothersso is the strategy to make weekly or monthly micro payments towards the principal? Because if you're making just 1 payment towards the mortgage per month then it still amortizes at the same rate no?

Maria Brisbane helped me secure HELOC with 650 credit score......

I would hope they wouldn't teach this in school, because it's awful financial advice and bad math.

Can you clarify this please? I am just a regular home owner and have 1 property not looking to invest in a rental property. Is this strategy not good for folks like me? We just purchased our home with a $700k balance. Thanks.

He also ignores the fact that you're not going to get a $270k loan when your home only has $100k of equity. Your home would need to be worth $445k to get a loan big enough to pay off the mortgage like he's saying.

@@ChristiantrospectiveGamer Right, you can't get a heloc for more equity than you actually own. I thought at first that he was talking about a $450k home.

Why bi-weekly and not monthly? What is difference?

@@Zvetochek1964 paying biweekly amounts to 13 full monthly payments instead of 12

Aw it looks like you unsubscribed.

Because many people don't have $100,000 lying around. The HELOC gives you the lump sum to tackle the front loading of a 1st mortgage.

@@ryanmorrison487 can you explain this to me?

Thats cause the teachers have no skills or experience in finance otherwise they wouldnt be in education

Maria Brisbane helped me secure HELOC with 650 credit score...

I’ve had a helco for years. I suggest a small heloc, 10,000 to 20,000. Use a small amount and put it towards principle on your 30yr mortgage. If you can handle a small amount no problem then next time you can up the amount. DO NOT USE ALL OF THE HELOC! 😂 I made that mistake. Will save you some grey hairs. Use the HELOC like a checking account.

Same question popped in my head.May be he is talking about 7-10 years after purchasing a house.Home equity value will go up due to payment towards the mortgage n price appreciation of the property.Then take a heloc to pay off the o/s mortgage.

Question? So if i have 132k left to pay off my house and the value now is about 230k-250k, will i be able to use heloc to use that money pay off my mortgage and pay back heloc with lower interest rate? Please help

I think the concept is the first lien HELOC will be 80-90% of appraised value. You use the new first lien HELOC to pay off the mortgage, so you no longer have a mortgage, just a HELOC with balance of whatever your previous mortgage was. Now you start paying down the HELOC balance and only incur simple interest, not front-loaded interest. Plus you have the benefit of lowering interest rate further by using the HELOC like a checking account for monthly deposits and expenses (which you would have spent anyways, just lowers your average daily balance by optimizing when you pay your credit cards for normal monthly expenses).

Maria Brisbane helped me secure HELOC with 650 credit score

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It gets paid off at the Sheriff's sale when it gets repossessed.

Good post, most loans today because of Dodd-Frank don't have any prepayment penalties unless you pay of the loan in less than like 2 years. Even for a 15 year mortgage not that common. I think some of the VA loans and some of the other government backed ones for "special qualifications" have more restrictions.

No. Just multiply your monthly payment by 13/12. That extra one twelfth of a payment each month will still pay down an extra payment each year just like paying 26 biweekly payments.

And adding "windfalls" to a low interest mortgage when you could be investing that money where it would get a much higher ROI doesn't make sense. Why trim your 4% mortgage when you could earn 7-10% buying an index fund?

You could either invest a small amount of money and pay your normal mortgage payments for 30 years or get intense pay off your mortgage in 5-10 years then have the rest of your life to invest even more money.

Also financial freedom of not owing anyone anything besides taxes is a feeling unlike nothing elsw

If you're making more than the interest on a 30 years mortgage go for it. I'm going to pay my mortgage off in 10 years n save 2o years of payments equals more money n freedom

Glad you think so!!! We appreciate you!

Maria Brisbane helped me secure HELOC with 650 credit score