i paid off my 30 year mortgage in 5 years yes thats correct 5 years. all i did was throw an extra 3k per month onto the balance this is how to create wealth.
@gregalazzaro7283
Жыл бұрын
LOL who the heck has an additional 3k laying around especially during bidan economics?
@indexfundsrock
Жыл бұрын
someone that is a multimillionaire with several streams of income while living beneath their means not hard. focus on savings/investing as much money as possible and making sacrifices. the system deliberately makes finances hard and difficult to understand. make this a priority and your future self will thank you. Stay out of debt and don't take out some garbage 1st line heloc out of the equation. @@gregalazzaro7283
@eunicebernard3054
7 ай бұрын
Exactly 😁😁
@plants4thewin
Жыл бұрын
Love this. I have $59K to go!!!!! I CAN TASTE THE FREEDOM!!!
@user-mg8mu3rv5i
2 жыл бұрын
Yes that's what I have a home equity line of credit and a checking account and savings and that's what I use
@hookedonfractal
2 жыл бұрын
How do you like your first lien HELOC 12 mo. later? Are you finding that it is actually helping you build wealth and pay down the mortgage simultaneously?
@Tryp-j9d
2 ай бұрын
It’s a SCAM, to get SUCKERS to pay HIGHER INTEREST RATES!!
@mohammedKhan-ry3qh
Жыл бұрын
Hi Garrett. Looking at your comments - one year ago you were about 1 year into your 1st lien HELOC and also the life insurance policy. I am exploring these options. How is the 1st lien HELOC paydown working out now almost 2 years in?
@divergentmind2023
Жыл бұрын
same here
@karent.5324
Жыл бұрын
so, after 2 years with the HELOC, are you happy you did it?
@mattackerman3624
Жыл бұрын
Hi Garrett, it's been over two years.... how's it going with the HELOC strategy?
@hollyj.rehfuss4358
Жыл бұрын
Did he answer you Matt?
@iamintractable1805
Жыл бұрын
How about an update
@JC-hd2tt
Жыл бұрын
Why would you exchange your fixed, lower interest rate for a variable, higher interest rate? Especially now with rates as high as they are, I can only feel bad for those who switched to a 1st Lien HELOC. At least with a 2nd position HELOC, once rates started to increase, people could stop “chunking”, instead they are stuck! Who knows when rates will go back down. The only way to pay off a loan that much faster is to make additional payments to the principal. Unfortunately there are no shortcuts and people are being scammed out of thousands. And that’s not the worst part as I explained before.
@gregalazzaro7283
Жыл бұрын
You're 100% incorrect all you have to do is run the numbers I don't care if the HELOC is at 15% you're still better off that a fixed 6% mortgage loan.
@blackson4546
10 ай бұрын
Payments on simple interest is the difference. Unlike Payments on amortized compound interest.
@JC-hd2tt
10 ай бұрын
@@blackson4546There is no such thing as an amortized compound interest. “Amortized interest” is a fake term created by these Velocity Banking scammers. Let’s say you still owe $300k on a regular mortgage, you’ll pay the interest on the balance for a given month, using a simple interest calculation. If you refinance that balance to a 1st Lien HELOC, you can only manipulate the current month to decrease the daily average balance, but you still owe most of the $300k so you’ll still be charged for most of the amount but with a higher interest, again using the same simple interest calculation. The only reason they make it seem like you’re paying the HELOC faster is because of the positive cash flow. So it’s just as simple to pay extra on the principal with a regular mortgage. When they do their comparison on their videos they’re purposely not applying that extra payment to the regular mortgage. They confuse you then say see, you’ll pay it off sooner with a HELOC, but it’s not a fair comparison. People are starting to realize this and say just pay extra on the principal. So they have started to redirect and say yeah but you won’t have access to your cash in an emergency. If you’re that concerned about that, then just get a 2nd Lien HELOC and only use it for emergencies.
@JC-hd2tt
10 ай бұрын
@@gregalazzaro7283🤦🏻♂️
@cmoss11467
10 ай бұрын
@@blackson4546 Amortized loan do not use compound interest. They are simple interest loans just like open-ended debt like CC's and LOC's. Interest on amortized loans cannot compound because every payment pays the interest accrued since the last payment plus some amount of principal so that over the term of the loan the principal borrowed is repaid.
@benitoromero3344
Жыл бұрын
Hi Garrett. I just saw your KZitem video on HELOC as first lien to pay off your home just wondering how is that going. I’m thinking about doing the same with my home. I’m about 6 years into my traditional mortgage. Questions for you would be. Did you do this yourself or did someone help you get this set up. For what you said in your video looks like you are set up what some people call it a sweep account is that correct? Having a hard time telling the banks what I need the product to do. I’m in Texas so I’m not sure if that’s even allowed here. Looking forward for your suggestions and thank you for your knowledge
@rodneydedeaux5642
Жыл бұрын
Hpw do you pay more on your loan In the first lien HELOC where each payment is going to interest only?
@303Estates
Жыл бұрын
you decide how much to put into principle. The bank will tell you what interest is due, and then if you have $7,800 in your checking, you do a "principle transfer" not an interest payment. That is the key to this process... ;-)
@divergentmind2023
Жыл бұрын
who did you use? how did it work out for you?
@tamazula5
3 жыл бұрын
You right i did
@thomasxxxxxx2345
4 ай бұрын
I've run through this vid and I have not seen interest rates anywhere. No calculations , no interest rates... we're expected to take it on faith alone that HELOC is somehow better... when of course we know that HELOC rates are higher than mortgage rates, that HELOCs are riskier than mortgages and that there are fees and headaches associated with it all Not serious
@Tryp-j9d
2 ай бұрын
THIS is a SCAM!!! To get SUCKERS to pay MUCH HIGHER INTEREST RATE!!!
@alanlajoie7307
2 жыл бұрын
what bank did you get your 1st position HELOC?
@kelliwilson9985
Жыл бұрын
Merchants Bank of Indiana has a great one.... All in One loan
@daver2214
Жыл бұрын
Is this still possible July 2023 or is the interest to high?
@gregalazzaro7283
Жыл бұрын
@@kelliwilson9985 I just looked this one up it's a lot like the First Savings Bank thank you for the information.
@6jefes948
2 жыл бұрын
You are better at articulating your velocity banking strategy than most other KZitemrs out there. Well done & thanks!
@garrettweldon5922
2 жыл бұрын
Wow, thanks!
@michaelbuckley624
10 ай бұрын
It’s true I agree.
@garrettweldon5922
3 жыл бұрын
What strategies are you using to pay off your home faster?
@civiren
4 ай бұрын
What do you mean when you put your checking account on top of your mortgage. What do you technically do. You’re very vague. Or are you doing it on purpose to arouse our curiosity! Pls give step by step instructions. Thanks
@hongmajeska4918
Жыл бұрын
I love your video so much. How is your process paying off your house?
@thecostoffinance4413
Жыл бұрын
You might want to look at IBC. Its a whole life policy through a mutual company that can take the place of your savings account and access the money any time to buy cars, pay down your mortgage or anything else you would otherwise be borrowing money to pay for. Let me know if you have any questions.
@cheesemouse7774
11 ай бұрын
Simple, effective video. Thx.
@sixstring4561
3 ай бұрын
Hello Garrett, with a 1st lien heloc do you have to essentially refinance your home?What did it cost you to set up the 1st lien heloc? I'm looking at a FIGURE Heloc with 7.4 % interest but will cost $2600 in fees. Thank you.
@Tryp-j9d
2 ай бұрын
HELOC interest rates are ALWAYS HIGHER than mortgage rate, DUMBBELL!! THIS is a TRICK!! And you DOPES can’t RECOGNIZE that!!!!
@briandeluca6908
Жыл бұрын
One thing people need to look at is.. when the loan closes, what will you do? The only way to get that money now is by selling the property but that's okay because you significantly saved money
@OrganDriver
Жыл бұрын
My question exactly! So if this is real, you pay off your home in 7 years. What happens to all the money you saved into the savings and checking aspect of the 1st lien heloc. Does it disappear when the loan is done?! If so, that means you've just paid interest for 7 years and yeah, maybe it's less than paying interest for 30 years. But if you were putting away 1,500/month into the "savings" aspect of the heloc and it's gone when the Heloc is done, then you've spent an equivalent 126000 plus whatever the interest was. Maybe I'm not understanding this.
@ikemonyemelukwe8478
Жыл бұрын
Wrong... when you eventually pay off a 1st lien Heloc mortgage, it's like paying off a credit card balance. You now have access to a paid off "credit card " for which you can draw funds to invest in income producing assets !
@briandeluca6908
Жыл бұрын
@@ikemonyemelukwe8478 you didnt read. I said if the loan is closed as in the bank closes the line of credit
@Sony72604
28 күн бұрын
Get another heloc
@diacrawford5587
2 жыл бұрын
My husban and I are going through this process right now. Can't wait to see how it goes!
@garrettweldon5922
2 жыл бұрын
You got this!
@divergentmind2023
Жыл бұрын
how is it so far? we are about to do it, so nervous but excited as well.
@danitasands5875
Жыл бұрын
What bank provides this? How do you pay off the first?
@divergentmind2023
Жыл бұрын
@@danitasands5875 first lien heloc is first saving bank, they are super.
@divergentmind2023
Жыл бұрын
@@danitasands5875 they pay it for you with all your bills and you have one place to pay back to, love because it is practical.
@BryanFox-i7g
Жыл бұрын
I live in Arkansas. What banks do First lien HELOCS?
@scottscott45
Жыл бұрын
What happens after the 10 years ? Do own the house free an clear ?
@sixthangel9716
3 жыл бұрын
Very good explanation.
@garrettweldon5922
3 жыл бұрын
Glad it was helpful! thanks for watching!!
@sixthangel9716
3 жыл бұрын
@@garrettweldon5922 is your Heloc linked to your checking account or are you using it as your checking account? I think that any time you take money out of your Heloc to pay a bill, that amount is charged a variable rate.
@garrettweldon5922
3 жыл бұрын
Mine is not 100% linked to my checking account. The credit union i have gone through from my credit union doesn't offer that service. You are correct that the rate is variable on the HELOC any time you pull money from it. That is why I put money that would otherwise be in my checking account in the HELOC for as long as possible to suppress the principle balance. Said another way if money is in my checking account it is doing nothing for me but in my HELOC it is saving me daily accrued interest. It forces you to consider not just interest rate but also time and balance. It is a game changer for our family. For example I just got my statement yesterday from my HELOC and we have only paid $2,649.26 in interest for the entire year. Compare that to what for us year 3 would be in a traditional mortgage and you start to see why a HELOC, as long as your cashflow positive and are confident budgeters, can be a real game changer.
@sixthangel9716
3 жыл бұрын
@@garrettweldon5922 very smart. Very smart. Especially when the interest rate is nothing right now.
@martinseaw
2 жыл бұрын
I’ve heard of this strategy but have seen anyone explain the math very well. Most lenders haven’t heard of a first lien HELOC. What banks are willing to do this?
@swavey83
Жыл бұрын
I have a discovery call Monday with Replace Your Mortgage. How has your experience been?
@garrettweldon5922
Жыл бұрын
It has been great. They have really developed into more then just replace your mortgage so i would assume they will offer more services then when I first started but I am very very happy with the education provided and how they set me up for success with the 1st lien HELOC strategy!
@swavey83
Жыл бұрын
@@garrettweldon5922 that is excellent to hear! Going to free myself from this mortgage and these student loans and finally e debt free!
@swavey83
Жыл бұрын
@@garrettweldon5922 so I had my call yesterday. They wanted to charge me over 8k for their service. No thank you. Seemed like predatory sales to me.
@JC-hd2tt
Жыл бұрын
Don’t get scammed. The only way to pay off your mortgage faster is to pay extra to the principal.
@swavey83
Жыл бұрын
@@JC-hd2tt the HELOC method works too. There is just no reason to pay that company 8k for something you can get yourself for free.
@otoolefinancialgroup
3 жыл бұрын
Gotta pay off that mortgage as fast as possible. It's the interest that is killing you..! The best way is to make strategic, lump sum payments, at specific dates, to eliminate future mortgage payments & eliminate interest. For example: Based a $200,000 mortgage...if you sent in $5,000 with your very 1st mortgage payment, you would knock off 23 payments & save over $23,000 in interest. Once the mortgage is paid off, you can then use those monthly payments to invest in wealth building products. Maybe an annuity, IUL or a whole life policy. You can then access those funds in the future tax free.
@garrettweldon5922
3 жыл бұрын
From a math standpoint you are spot on. What I am trying to calibrate is cashflow. I have all of this money sitting in my checking account that is tagged for other expenses that will occur during the year. The question I am trying to solve is how to have that money suppress my principle balance while it is just sitting in my checking account but still being able to use the money when the time comes. Wouldn't the strategy I outlined pay off the mortgage even faster than what you articulated since I will be putting every dollar I make to pay off my mortgage?
@otoolefinancialgroup
3 жыл бұрын
@@garrettweldon5922 You are correct. There are a few life insurance products out there that you might want to consider. People will use a life insurance policy (not their main policies) as a bank. It is called infinite banking. You will need a life insurance policy that has immediate cash value when it is issued. You then take out loans against the policy to pay down the mortgage. Something to consider...
@garrettweldon5922
3 жыл бұрын
You have read my mind. That is the strategy I am currently working on is an overfunded whole life policy however I am combining that strategy along with refinancing my mortgage into a 1st lien HELOC.
@Jon.steiger
2 жыл бұрын
@@garrettweldon5922 great content here! I too am working on combining these two strategies. Currently have had whole life policies for my wife and I for a few months. Going to get a first lien HELOC soon and use it to invest in more real estate. Currently have a house hack duplex that we live in and a short term vacation rental. Infinite banking and the first lien HELOC are two of the most powerful strategies I’ve come across. Marrying the two together seems ideal. How has this worked for you thus far? Do you have any advice or tips when combining the two?
@garrettweldon5922
2 жыл бұрын
I am just about to hit my year mark on my whole life policies as well as my 1st lien heloc. I don't have any specific strategies to speak of yet but I am in the middle of reading Becoming your own Banker by Nelson Nash as well as taking training from Jim Kindred to assure the strategies I implement have focus and vision. I am taking the education through the Replace Your Mortgage group.
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