Pay Off Any Amortized Loan Quickly! Mortgage Interest is TOO High of a Price to Pay for a Home!

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[@scottmason2245]

Not paying the interest on the mortgage is the concept here. Its cheaper to pay off a line of credit/ heloc than it is to pay interest on the mortgage.

[@TheRuckFarm]

This is the video that finally made velocity banking click for me. I wasn’t getting it until this. THANK YOU!

[@james88499]

Velocity Banking is the Rube Goldberg machine of financial advice. Kids, if you have an extra $2000 a month put it toward the principle and skip all the VB machinations.

[@aaronjennings8385]

That would work well for monastic ascetic. Most people want to have some form of liquidity in case of an emergency.

[@sharronbush886]

2000k a month extra principle pmt is not the same as a 24k chunk pronciple payment. Also she suggests chinking 10k (in other videos) and she breaks down the math of the difference. The chink principle payment comes out AHEAD. You dont get everything you need to know from 1 video. Christy does the nath Everytime. Is just MATH! VELOCITY BANKING WINS !

[@sharronbush886]

Thank you Christy!!!!

[@cdogg1787]

10:40 this is the key to the whole strategy. people saying it doesn't work aren't understanding this part

[@ramm8196]

I love your material! I'll pay my house off in a little over 2 years using this system. Thank you for your work!

[@Hannahbenowitz]

Mortgage rates are currently at an all time high since 2000(23 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

[@JosephineKenney]

The stock market is no different, to maintain profit you need to have some in-depth knowledge on the market. 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.

[@laurencestewart3828]

I sold residential real estate for 15 years and explained the amortization schedule to every first-time buyer. Most people just can't confront this even when it's explained to them.

[@Tryp-j9d]

MOST people CAN’T do 9th grade math. They’re DOPES!!

[@sunoveristambul]

No country except USA does 30 yr, fixed rate home mortgages and it IS THE PATH TO wealth!!

[@Tryp-j9d]

@@sunoveristambul They “ALL” used to be TWENTY-YEAR mortgages…UNTIL the LATE 70s!!

[@michaelwright1602]

Pure GENIUS! And who is to say that in the 5 to 7 years your income will not go up? Then you can pay it off even quicker! Interest, it is all about the interest folks!

[@VanntasticFinances]

Thanks Michael!

[@CherylHarpercompulsivespinner]

Im in Canada and house prices are crazy. People are over bidding but 100 & 200 k. Not sure what they're thinking about . It's like they're asleep. Not sure where this will end. Thanks for educating people.

[@craign3062]

The advantage of getting a LOC rather than just paying some extra monthly is the ability to pay the amortized mortgage interest down with a large payment, then paying the LOC which is simple interest over time savings thousands. That is how I did this. Look at your amortization table. You pay hefty interest early in the loan and it takes roughly 15 years of payments just to get to a break even point between principal and interest. The quicker you can pay down the mortgage principal, the more interest you save. If you borrow $20k at simple interest and pay that against your mortgage you are saving thousands immediately and over time paying hundreds to the LOC. Interest rates when I did this were about 4.5% on the LOC. So, the first year I used $20k of the LOC and it took me about a year to pay it back. As I recall, the interest was about $700-$800 vs. thousands saved on the mortgage. The following years I did the same. The key is to have the extra income with the ability to service both loans.

[@da-vido]

​@thomasxxxxxx2345 hi so it only works if the mortgage rate is higher than the LOC rate?

[@burlyn88]

@@thomasxxxxxx2345 I don't understand how people don't get this. That same extra money can be put to the mortgage and will save even more. It's killing me to see how many people don't get this...unless I'm missing something?!?

[@VanntasticFinances]

No. It depends on mortgage rate and cash flow.

[@VanntasticFinances]

I’m sorry, you’re wrong. And throwing all my extra cash into a mortgage? No thanks… I’ll keep my cash flow. Thanks for watching!

[@burlyn88]

@@VanntasticFinances OK...maybe I'm wrong...but your answer doesn't explain why. I'm truly TRYING to understand and just don't see it. So what if I had a LOC big enough to payoff the entire amount...so 7.35% to 12%...are you saying I should put the entire mortgage on a LOC and it would be less interest?

[@thepreston1021]

Interesting method, using short-term debt to pay long-term; it doesn't factor in risk. I use Short-term debt sparingly. Everything in one's life has to be perfect for 6 months with this method. One could always just use the 2K surplus and pay down the principle every month, never incurring any interest charges. That way, if something unforeseen happens between month 1 and month 6, there's no risk

[@davidwallace3933]

@@bullpuppy7455, I ran an in-depth analysis. Curtailing $2k each month saves more in the long run. Payoff in 90 months paying $52,698.56 in total interest. For the LOC strategy to work, you would have to keep an average balance at or below $1,242.10 for the 88 months to payoff to break even with the prior strategy, but then you would still have to payoff that LOC.

[@BuddabuttDad]

@@davidwallace3933Question. Would this method be worth it with a 1.5% interest rate?

[@CForged]

@@bullpuppy7455good point 👍🏼

[@CForged]

@@davidwallace3933at a cost of higher risk.

[@Colangelo405]

If you have an extra 2k every month, wouldn't you pay less interest if you just put that extra toward your mortgage every month?

[@jonschultz1316]

This was my initial thought lol why don’t you just put the 2000 on the principal.

[@JH-hc5dv]

Eyes Wide Open Now. Thank you Christy. Looking so forward to my white board meeting with you second week of November.

[@VanntasticFinances]

@JH-hc5dv Excited to meet you!!

[@jackieboudreaux6339]

This of course is only for people that are fiscally responsible. If you cannot stop spending then this is disastrous.

[@joepfeiler5911]

If you have 2 k extra cash flow a month, how long have you had it? How long will it continue? If you had it in the past, where is all the money now?

[@palmeto1130]

The main point is, satisfying the heloc payment by depositing income into heloc, thus increasing cash flow. Because it’s a line of credit you can pull it back out when needed to pay for expenses.

[@aaronjennings8385]

That's a detail that some ignore.

[@nickimillennium]

I used simple math calculations to determine that I would save $60K by chunking twice a year for the first years (where the interest will be the highest on the amortization schedule) . This works. Even the high interest in a PLOC at my credit union for two chunks is less than the interest on the amortization schedule for one year

[@AmarliaVB]

This was very informative, I always knew that having a mortgage benefited the banks majorly. This video gave me the motivation to stop ignoring this fact and do something about it.

[@VanntasticFinances]

Well, I am so glad! Thank you so much for watching!

[@rickkern5785]

Mortgages benefit you by allowing you to live in a much nicer house than you can pay for in cash.

[@munix9351]

​@@rickkern5785yet still pay double for in the end. Unless you were able to sell it well over the price you laid for it.

[@Gettin_chunky]

I pay my monthly plus what was planned to go to principal in the next payment. I’ll be done in 15 yrs.

[@jasonlessard2373]

Understanding that the chunk payment satisfies the mortgage payment for the month. What would it look like if you made the 10k chunk then instead of going all the way to zero. You made a 5k chunk every 3-4 months , satisfying another payment freeing up cash flow, feeding that much more into the cycle?

[@Peace_from_within]

Good idea!! I say if the LOC has available balance to cover full monthly expenses plus an additional large chunk (Down to 5k balance instead of 0 then a 5 K chunk payment to the mortgage, even better and faster total payoff!! I say, the more of that 250K we can pay off faster by transferring to simple loan accounts, the less amortized interest on the mortgage we will pay, which is thousands in savings!

[@davanansalick6126]

Thank you so much 🙏🏽

[@VanntasticFinances]

😃 Thank you!

[@chrisaustin6255]

You should layout your info on the white board in a more structured way so it's easy to understand

[@byrdn77]

Help me understand.... if you take out any line of credit... you have a payment that you have to pay back. I understood that our payroll satisfies the payment.. but wouldn't you add that in for debt?

[@Sergio-ps6cb]

Thanks!

[@VanntasticFinances]

Thank you so much!!

[@terrencetaylor4822]

Featured snippet from the web According to Census Bureau data, over 38 percent of owner-occupied housing units are owned free and clear. Not 1% I don't know where you get your numbers from.

[@johnmea5140]

The math she shows on this assumes the LOC does NOT compound interest daily or using the average daily balance. Good luck getting one of those. You can easily get a CC that compounds interest on only the unpaid balance, but they will not let you pay your mortgage with a CC.

[@gnd111]

@john...Heloc are simple interest like car loans.

[@DougTvedt]

How are you paying the mortgage while you're paying down the LOC debt? I'm confused.

[@sheshotjfk8375]

You are still making your regularly scheduled mortgage payments. This is on top of those. You have to have some extra cash coming in over expenses every month to make this work. It's just like if you have an extra 2K every month and you pay that toward your mortgage then you will pay it off WAYY faster BUT she is explaining that if you use a Line of Credit on top of that it is an added bonus. You use the Line of Credit to pay off a big chunk of the mortgage, lets say 10K, and then use the extra 2K a month to pay off the LOC over a number of months. This way, the whole time you are paying off the LOC more of your monthly mortgage payment is going to paying off the house as opposed to going to interest on the house. According to her math it is a big difference as opposed to just putting the extra monthly cash right onto the mortgage. I haven't ran the calculations myself so I am just trusting her math.

[@Mike-ym6rl]

I wish I had known about velocity banking back in 2008/2009. I lost a beautiful home in Florida in the last market crash. I still have bad dreams about that to this day. I am now retired living in a small rented apartment with an income of less than $2000/month.

[@santanaurias3112]

Why did you lose it? You quit working?

[@VanntasticFinances]

I’m so sorry to hear that! But stay encouraged and keep moving forward! We can retire when we’re dead!😂

[@zo3821]

@@santanaurias3112lol crazy market crash. Home foreclosures everywhere. Housing bubble burst. You must be young.

[@Mike-ym6rl]

@@santanaurias3112 I had a tri-plex. Lost my job, tenants also lost their jobs...no cashflow.. Lived in it for eight years. With velocity banking could have been paid off.

[@gnd111]

@@santanaurias3112 Many people lost good jobs during subprime lending crash signed into law by Clinton and come to fruition 10 years later, PS...its about to happen again.

[@jottin1359]

Wow! Thank you, wished I had heard this in my 20's

[@VanntasticFinances]

MEEEE TOOOOOO!

[@JLH1956]

Can I do this with 10k savings in the bank?

[@TerriMadrid]

I think you just changed my life! Thank you!!

[@zetraviusallen4466]

I would love to see this method applied to a 15-year mortgage

[@CForged]

A 15 year is still front loaded so it should work for the first seven

[@krg038]

You mention a CC as a LOC. I dont know of a CC that has a high cash out LOC. Usually its about 20% of the LOC to cash out. My mortage does not allow me to pay with a CC. My expenses are low except for my mortage. No CC payments. No car payments. $600 cash flow. Enjoy your other videos too.

[@gnd111]

@krg HELOC is a CC...simple interest unlike front loaded amortization loan from bank

[@hugh261]

So, if I pay 21% interest on the $10,000 while I pay it down instead of 6%, I'm coming out ahead? I guess I just don't have what it takes to play 4D chess.

[@VanntasticFinances]

Maybe not. :) It's not for everyone...Thanks for watching any way!

[@blagagoertzen]

Can you show how to use Karl's mortgage calculator to get our mortgage payoff numbers please

[@LearnwithLoriJill]

I'm confused only about the bills being $3000. Is the mortgage in that? Because I didn't think you could pay a mortgage with a credit card?

[@VanntasticFinances]

If you’re using a credit card for velocity then payments for mortgage, other debts, will remain in checking. Only chargeable expenses go onto card. Thanks for watching.

[@spike238]

Property = equity , which offsets the mortgage debt , , most mortgages only allow a percentage of the balance owing per year as an additional payment , some only allow 1 extra month per year , read the mortgage agreement before getting your hopes up ,

[@Melaniejd902]

Please invest in some recording equipment like a microphone. The sound is terrible in your videos

[@michaellatta]

Yes it goes faster if you put an extra 2k each month to paying off debt. I wonder what the balance would be in the mortgage if you paid an extra 2k each month.

[@justme7422]

How do you make a mortgage payment on a credit card?

[@tysonkennedy9639]

If you paid that extra $2000/month onto your house payment for 6 months, you'd be more than $12,000 down on that payment. Plus you'd be paying less interest on it the entire time. All of this is assuming you don't use your extra money to make higher payments.. This is the wrong way to do it, the bank wants you to pay higher interest loans, I am assuming you just work for one and make money on talking people into these loans? This is a bad idea, people should not be doing it.

[@MaverickPerspective]

What if all you have is a CC. You can’t pay your mortgage with a CC

[@onestar45]

This is a game changer!!!!!!!. Christy, where is the interest in th computation? Please clarify. Tuanks

[@karlkable]

Hi. Great video. My only question is how does that compare to just putting the $2000/month directly to the mortgage? Thanks!

[@ykmjc]

Where are you making your line of credit payment? It's not shown anywhere, only your living expenses are shown? Faulty math everywhere!

[@markhanson6506]

Instead of depositing your payroll check into the LOC, why don't you just use your $2000 monthly cash flow to pay down on that LOC. Doesn't that accomplish the same thing? Or instead of taking out a 10K LOC to pay down the mortgage. Why don't you just take the $2k monthly cash flow and pay it down on the principle of the mortgage every month?

[@aaronjennings8385]

That would work well for monastic ascetic. Most people want to have some form of liquidity in case of an emergency.

[@barbaracarbone4658]

What about the mortgage insurance? Is that amortized, too?

[@justjames9246]

I've had this concept in my head for quite some time. But finding a HELOC that I can use has been difficult. In addition to the ongoing interest charge, they charge an additional interest charge that wrecks the plan. Additionally, all of the ones I've found specify that you can only use it to make improvements on the house. So where do I find a straightforward HELOC or even a HELOC where I can pull cash directly without the extra up front interest charge?

[@shelisegr8love]

Use a line of credit or credit card.

[@victoriakennedy4811]

the reason people don't pay down their mortgages this way is because they have problems with family and also jobs, they get where when you are about to pay things down there is always something that happens to stop you being able to sort it out.

[@jmunn44]

What’s the difference of just paying the extra 2k toward the mortgage

[@davidwallace3933]

Yeah, I ran the numbers, and I believe curtailing $2k each month saves more in the long run. Payoff in 90 months paying $52,698.56 in total interest.

[@hollywoodwear123]

But you are not taking out insurance and property taxes out of each monthly payment. Instead you need to calculate the monthly principle you are paying monthly

[@css95]

On the amortization schedule, if I pay 2 months of principal ahead, I can eliminate the 2 months of interest for those two months. Otherwise, for every month of principal I pay ahead I can strike off the interest for that month?

[@Lasrd]

I can’t pay mortgage or cars with CC (HLOC) so transfer the money bank into the checking to pay those?!

[@darrenfield5567]

First, while your math on the 30 year interest cost is correct and eye opening to a lot of people, it also ignores the opportunity cost of using your funds to invest in higher return opportunities and the tax advantages from mortgage interest (compounding interest income looks just as nice in 30 years). However, I still agree in the premise of extinguishing a mortgage as fast as possible as a sound overall strategy. However, I just cannot get behind advice to leverage credit card debt to do so. Your strategy has accelerated the $10k of principal at the expense of much greater risk on that credit card balance. You say “this is the only way for you to get out of debt”….but all you have done is created more debt to do so. If you can afford to pay $2k per month to pay off the the line of credit, you can simply pay that additional $2k per month in principal. Yes, you don’t get the magical math that show the interest savings over 30 years of making that up from payment, but over time you get to a similar answer with significantly lower risk. What happens when you have an unexpected medical bill, car repair, etc and your monthly expenses rise from $3k to $5k? That’s when the traps of credit card debt get you and what is sinking the vast majority of people in debt. Under your approach, I’m now financing at a 20%+ APR vs my post tax mortgage interest rate under 5.25% (in your example). I would highly recommend people build up a little bit of savings first, then pay a structured $2k per month extra on your mortgage (more if you can afford it), the try to walk a tightrope and trying to spin multiple plates of credit card balances.

[@kvnndvn]

Yeah of people like me have a 2.75% fixed 30 year rate should not be paying it off. Invest your money.

[@CForged]

I like that phrase, spin multiple plates of credit. Although she does recommend clearing all credit cards to the goal of paying down mortgage with LOC. In the first half of a 30 year it actually is safer than throwing all that cash into the mortgage money pit. Most people actually 1% of Americans pay off their mortgage

[@sharronbush886]

I had to watch several videos before it clicked! Velocity Banking DOES work! I am grateful for her advice and am using her advice and it is working! My mortgage is 2.81% and I want to save thousands of interest. I will have a lot more money when I am not paying a mortgage payment every month! Thank you Christy! Yes, for whomever is concerned I do save money (invest). I am working down debt!

[@jameslaughlin3298]

Paying an extra $2000 a month on the principal pays this mortgage off about 10 months sooner that the method she explains. Plus, it’s simpler.

[@momoscurry3398]

People don't have an Extra 2000$ lying around... please explain

[@jameslaughlin3298]

@@momoscurry3398 Sure - in this example the amount available for principal reduction is approximately $2,000.

[@vielka503]

How can you pay off a USDA mortgage loan? I know people that have those are low income but if you were to get financial help to pay the mortgage off but stay in your home, could that be done?

[@OffCode]

This doesnt factor in your down payment.Am i missing something?

[@limitlesschoices]

What happens when banks stop lending or freeze your line of credit?

[@VanntasticFinances]

If they slow down, they’ll start back. That’s how they’re making billions

[@rickkern5785]

Then you quit borrowing against your line of credit. If you build equity in your house by paying a large down and/or paying it down quickly the bank will not limit your line of credit. When you have significant assets that you own it becomes easy to borrow money.

[@famchavez5]

Where do I get the LOC? Is it a line of credit on my home?

[@JohnColley]

Shop around and find a bank or other lender that offers LOC products. Stay away from Payday Loan places though, those places are sharks and will eat you alive! An LOC on your home is a Home Equity Line of Credit (HELOC), that's certainly one way to go about it - and not necessarily a bad choice. Another LOC is a Personal Line of Credit (PLOC). A HELOC is secured by the equity of your home (difference between its value and what you owe), while a PLOC is an unsecured loan (nothing but your credit score and good payment history). Because of this, a HELOC is typically easier to get (assuming you have some equity to work with), but a PLOC works well if you have a good credit score in the upper 700's or higher.

[@ronaldstansell3728]

It doesnt really make sense what you are saying! Because in your example you are saying that the mortgage balance will go from 250 down to 240 right away! This part is true yes, but the mortgage payment every month does not change! It will Stay the same at the 1,300 plus per month regardless if the principal is 240k or 250k! In your example it would make much more sense to pay the 2 k in extra income directly towards principal on the mortgage! Then at the end of 5 months it’s paid down to 240 and the interest you are esentilly paying on the heloc that could go to towards principal also the 1,000 dollars roughly in interest! Is there something Im not understanding here??

[@spectator1123]

@@steve-on3234 Actually the balance on the mortgage will immediately drop by 10K then in your ensuing monthly payments, even if the payments remain the same, more money will go towards principal than the interest. Therefore in the amortization schedule, the number of remaining payments would drop.

[@ronaldstansell3728]

@@steve-on3234 Yes this is exaclty what I was thinking also! Why sacrifice a great interest rate for a junky one? It doesnt make sense!

[@davidwallace3933]

How does this strategy compare with simply paying off $2k extra on your mortgage each month for 5 months? Perhaps you would pay a little more interest on the mortgage, but you should save more interest on the LOC. Am I wrong?

[@VanntasticFinances]

Yes…you’re not understanding. There is very little interest paid on LOC…and if you make cash flow payments toward the mortgage, you have lost all of that cash flow in the loan. With the LOC ..you keep all of your cash flow in your control. Thank you for watching!

[@davidwallace3933]

@@VanntasticFinances, thank you for your fast response. I have some questions. I'll letter them so you can more easily respond. A. Wouldn't paying a $2k curtailment monthly payoff the loan in 90 months costing $52,698.56 in total mortgage interest? B. Wouldn't paying a $10k curtailment every 6 months starting with month 1 payoff in 100 months paying a total of $58,029.14 in total mortgage interest? Please, what did I calculate incorrectly?

[@Dajeffe1]

Kind of a goober question here.....my mortgage holder appears to only want a checking or savings account from which to draw the payment. Love this idea, but my present, preferred line of credit (CC) does not seem to be an option.

[@zo3821]

There’s lots of credit cards that will send you checks. You can write them to whoever you want to even cash to yourself. A lot of the time the money will be zero percent interest for 6-18 months depending on the offer and credit score. When I was younger just starting a family, we lived zero percent credit card to zero percent credit card. I rotated balances constantly lol. Crazy times. In 2014 I started my investment portfolio with $10k 12 month zero percent LOC, which has really paid off now.

[@VanntasticFinances]

@Dajeffe1 I wouldn’t suggest using a credit card for debt payments. Too many fees associated

[@BM-ct2hl]

Is the loc better than paying extra on principal each month??

[@aaronjennings8385]

People agree that paying extra against principle would be a first choice. That would work well for monastic ascetic, however Most people want to have some form of liquidity in case of an emergency.

[@seewaage]

Will a large principal payment push out the next payment due date on a mortgage? Thanks for the cool videos!

[@am1296]

Yes you reduce $10k on one side, and owe $10k on the other But you haved saved on huge interest amount and years. The cost? A small fixed interest amount.

[@ChristineLV]

I'm still confused. 🤔 I have a small mortgage I need to get rid of and no other debt. How about a LOC for the balance of the mortgage? Then hit the LOC hard?

[@elsagonzalez5161]

My question would be what are the chances for someone to get a LOC that high if they have a loan of $250K?

[@VanntasticFinances]

Great chance! If you have the equity, cash flow and good DTI.

[@thaneschaffer]

The problem with this whole analysis is that is a misdirection from what your goals should be. A nut shell game at higher rates to rob Peter to pay Paul to save $10k on your mortgage isn't really useful information. In Vanns example she indicates there is an extra $2k in additional disposable income. If you add that extra $2k on to your mortgage of $1381 as additional principal for a $3381 payment instead, then even this 5.25% mortgage would be paid off in about 7.5 years.

[@poochewcaboo1860]

Ya, she pumping fools gold on the sheep.

[@Rose2024sunshine]

If you have 100k line of credit can you pay 100k towards the principal instead of the 10k

[@darius5951]

You can definitely save, but when you factor in the cash flow that would've been building in your bank account, the savings aren't as big. If you took $10k x 10 times to pay Heloc that's $100k that would've been still in your savings/checking account. But it was transferred to your mortgage balance. You're paying the debt off quicker, but that's mainly because you deposited $100k from your savings (cash flow) that you no longer have.

[@KristinaY13]

How to you pull 10k from a Credit card LOC to pay a high interest loan?

[@skippymarone1251]

If you apply the $10K to a mortgage you will still have to make your monthly payments as usual. You can't take the $1380 out of your expenses?

[@JoeKing-lo8em]

So just throw your entire monthly income to the LOC??? What would you live on for the month? Why are you adding the expenses to the LOC after paying the monthly income?

[@2119rocky]

Thanks for sharing this great information. The $10K from HELOC I would pay to principal on my mortgage correct ? Thanks

[@rileyalderson8613]

What's the advantage using another loan, as apposed to just paying extra repayments weekly, is that not the same thing? Paying an extra $200/week, or dropping 10k equates to pretty much the same time and money reduction of the loan?

[@monicalandon8107]

would it make sense to get PLC to afford repairs and or improvements rather than dip into retirement savings?

[@kevinjaquez7622]

After watching the other video like ten times I found this video and now I understand it!!! This is a genius strategy

[@lillithjones993]

You’re not the only one that had to watch it several times

[@SirArioch]

Why not just pay the extra $2,000/month to the mortgage? Extra mortgage payments go directly to principle.

[@aaronjennings8385]

That would work well for monastic ascetic. Most people want to have some form of liquidity in case of an emergency.

[@tlr-nut7275]

If you can afford to pay the $1,380 for mortgage and pay of the $10,000 LOC, why not just get a 10 year mortgage?

[@aaronjennings8385]

That would work well for monastic ascetic. Most people want to have some form of liquidity in case of an emergency.

[@joecies]

why not just pay an extra 2k ( your cashflow ) against the mortgage every month? -- In the 6 months you show, you would have knocked down the mortgage by 12k vs 10k.

[@aaronjennings8385]

That would work well for monastic ascetic. Most people want to have some form of liquidity in case of an emergency.

[@ykmjc]

correct this is just a scam!

[@cork123ify]

How can I ask questions about your theory?

[@amberklein1560]

Yes. IF you have an extra $2,000 per month, you can make extra payments. But if you don't, then you can use the bank's money to pay down the mortgage while still being able to live off that money.

[@poochewcaboo1860]

Huh? In her example you are using extra money to pay the 10k back so not sure where you are coming from

[@Bholland31471]

Who do you specifically get a LOC from? When i search for LOC, i get a lot of links for personal loans, which is not what we want. Be careful.

[@njekshun]

So are u paying the 10k from the loc and appying it to the loan principle or the loan interest?

[@MYEVILTWIN1000]

Why not transfer your payroll directly onto your mortgage, especially if you have a redraw facility

[@VanntasticFinances]

Because YOUR MONEY IS GONE. 😔 Once you put in mortgage, it’s gone. That’s the point of using LINES OF CREDIT. You can always access your money.

[@MYEVILTWIN1000]

@@VanntasticFinances that’s why it’s called a redraw, you can redraw back out over and above your minimum payment

[@aaronjennings8385]

​@@MYEVILTWIN1000Mortgages in America do not typically have a redraw function like those found in Australian home loans. The redraw facility, which allows borrowers to withdraw extra repayments made on their home loan, is a feature commonly associated with home loans in Australia and other countries but is not typically part of mortgage products in the United States.

[@DarinHibbs1]

so you are making a one time 10k lump sum payment...and you secure and season the line of credit 6 months BEFORE getting the mortgage approval?

[@joelmalcolm-qu2pn]

Instead of taking a line and paying it down with the extra 2k, yould be better off paying the 2k per month on the mortgage. Yould have more principal paid after 6 months then doing whatever funny math you came up with.

[@aaronjennings8385]

That would work well for monastic ascetic. Most people want to have some form of liquidity in case of an emergency.

[@ykmjc]

@@aaronjennings8385 you're a scammer

[@brunoaguilarjr.5027]

Can I deposit weekly instead of monthly?

[@flycow69]

If you think that is bad the actual 30 year mortgage rate is actually over 7.5636 % with good credit and they might even add 1% to it. That is the reason you rent now and you have no double the insurance the previous house owner had or the tax that used to be for half of the house price that you now own add landscaping and other expenses. Who ever tells you you’re waiting your rent money tell him or her that renting for 2 or 3 years is cheaper than having a mortgage for 30 years almost at 8% ( plus insurance plus taxes plus landscaping plus you already paying for a house that was worth half what you’re buying now. ) check the listing to understand no real estate house should ever double in price in 3 years. The housing bubble will burst but you don’t want to be the one holding the bag.

[@Landon_Hughes]

My mom told me about you and it sounded like an MLM. After listening to you talk about it, it makes a LOT more sense. I will most likely be doing this when I buy my first condo. Edit: this is very much a different way to think compared to the usual way we were all taught (either from school or from family members)

[@VanntasticFinances]

Thanks Landon! Good luck with your journey!

[@Landon_Hughes]

@@VanntasticFinances thanks!

[@Mel-ij9wi]

This is very informative. If I am renting right now. Should I go out and buy a house? Do I get the loan first? Then use the line of credit for the first payment?

[@brendaconn5838]

So you are paying $2,000 a month to pay off the $10,000. But what if you don't have that much left over after expenses?

[@VanntasticFinances]

Any cash flow you have will bring balance is down. Thank you so much for watching!

[@barbaraweronko7975]

What bills cannot be paid if I’m using a credit card as my line of credit

[@VanntasticFinances]

Loan payments..

[@barbaraweronko7975]

@@VanntasticFinances do mortgages fall under the loan category?

[@ashleyjerrett7075]

HELP!! @VANNtastic! When you put the money on the LOC, what about the interest you need to pay on that? Do they not charge because you are adding the minimum pymts with your $5000??? Thank you for this video!!!!

[@waaynneb1808]

your deposits to the LoC (whether they're weekly, bi-weekly, or monthly) MORE THAN satisfy the monthly obligation (well above the minimum) and you just use the credit card they give you when you open that LoC to pay your regular bills (food, utilities, gas, etc...) which is the $3000 she keeps adding back onto the LoC balance.

[@idrearamacirmtamta1293]

Can I buy a house with an LOC instead of a mortgage?

[@markkauffman6184]

I paid off my mortgage with a home equity line of credit.

[@idrearamacirmtamta1293]

@markkauffman6184 good to know thanks

[@poochewcaboo1860]

LOC on your equity? Dont you need to own the house for that? Jeez

[@traceystock7352]

If you use a credit card but pay the monthly charges on time, you don't pay any interest depending on the card I guess. I never have anyway. HECLOCs are different but a credit card could be used very easily this way. We live in a high cost of living area where all homes are million dollar homes now. What if you owe $600K on your mortgage which is typical here? is it still worth the effort? Or is it better to use VB for the other debts?

[@traceystock7352]

@traybern What are the "UM" and string of explanation marks for? You come across as overly dramatic. As someone with an 848 FICO score and 820 Experian score, I have had no need for this information but am simply interested in this content. That's why I asked.

[@hunybee5558]

Thank you for sharing 😊

[@staciv1064]

Hello I am new.. I’m trying to find a beginner video. Can someone point me in the right direction

[@olivecracker1]

So how is your mortgage payment coming out of your LOC ? I thought you couldnt pay a mortgage payment with a line of credit ?

[@Marine-sz2lf]

You just write a check from the LOC to pay down your Mortgage. You can do this as long as you don't have the mortgage with the same bank.

[@VanntasticFinances]

Yes, you can pay loan payments with a line of credit, just not a credit card. Thanks for watching!

[@olivecracker1]

@@VanntasticFinances thats good to know. Thanks

[@olivecracker1]

@@Marine-sz2lf Thanks.

[@victoriabarnett4279]

Fascinating! Learning lots. Thanks!