How to Pay Off Your Mortgage In 5-7 Years

How To Pay Off Your Mortgage In 5-7 Years WITHOUT making more money or changing your lifestyle! This is the newest and the utmost updated version of our videos! If you want to learn How to Pay off Your Mortgage Faster or How to Pay off Your Mortgage Early, this is it! Enjoy!

0:00 - Introduction to Sam Kwak
0:46 - Debt Free Acceleration (Accelerated Banking Strategy) Introduction
2:05 - The problem with your mortgage
7:35 - Refinancing the Mortgage is a Problem
10:35 - Introduction to the HELOC
13:39 - Average Daily Interest
15:40 - Recap of the HELOC
16:13 - HELOC Strategy Overview
21:52 - Average Daily Interest Example
25:15 - 1st Lien HELOC - Replace Your Mortgage
26:00 - HELOC Calculator Giveaway

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Ever wonder how you may be able to pay off your #mortgage within 5-7 years (depending on your situation) without sending double payments to the bank, changing your current level of income or not #refinancing? If you want to learn how to pay off your mortgage early or faster, Sam Kwak is going to show you a strategy in how you can use a different method/instrument to pay off your mortgage quicker! This strategy is called the "Debt Free Acceleration" Strategy. This strategy has many other names such as "Velocity Banking", "Mortgage Acceleration", "Accelerated Debt Reduction", "HELOC Strategy", and more!

We first need to understand how mortgages work. In this strategy, we are using a Home Equity Line of Credit (HELOC) as a leverage to pay off the mortgage quicker and still maintaining our income and expenses as how they are. You can also use other instruments such as Business Line of Credit, Personal Line of Credit, or Credit Cards for the purpose of this strategy. The beautiful thing about this strategy is that it allows us to take an inefficient debt and convert it over to a much efficient debt.

The emphasis on this strategy is mainly on cash flow and principal balance reduction. The adage strategy of taking your hard-earned money you earn and paying extra toward the principle is an old school strategy. While it works, the Debt Free Accelerator Strategy is a much more efficient way of paying off an amortized debt because it takes advantage of the maximum income utilization. This strategy will also work on Student loans, car loans, personal loans and so forth! Don't let the banks trick you with their amortized products!!!

You can expect to pay off your mortgage faster and early with this strategy!

Would you be interested in more information and download our FREE HELOC Calculator?

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DISCLAIMER: Sam Kwak is not a licensed mortgage broker, not real estate agent, not a Certified Financial Planner, not a licensed attorney, and not a Certified Public Accountant. Viewers will consult with their professionals prior to engaging in any financial strategies. Not everyone will experience 100% success rate with using this strategy. This strategy does require equity, a good standing with your current mortgage and the patience to use the strategy. The result of paying off your mortgage within 5-7 years is atypical but it represents a likely possible outcome for individuals who use this strategy. We (Novo Elite and DBA The Kwak Brothers) does not warrant a promise or a guarantee any specific outcomes and/or results from the use of this strategy.

[nvicente]

This video is 100% accurate. I refinanced my home in 2012 after fixing up a foreclosure and had roughly 215K for a principal balance. It wasn’t until 2014 that I discovered this process through a financial advisor. He showed me how to pay off my house using a HELOC. I just paid off my entire mortgage in just under six years using the same money I already made and I put in about $80, 000 in renovations towards my house such as adding on a four season room. For all you haters, you’re the same ones who will never pay off your mortgage and will continue to refinance and be a slave to your boss and your house. With this method you let your house work for you and you become your own bank. The proof is in the numbers, math does not lie.

[paulnabena]

I used this strategy to pay off my car last year - my TITLE was sent to me & now it is 100% mine.

[Riggsnic_co]

Back in the day, when I purchased my first home to live-in; that was Miami in the early 1990s, first mortgages with rates of 8 to 9% and 9% to 10% were typical. People will have to accept the possibility that we won't ever return to 3%. If sellers must sell, home prices will have to decline, and lower evaluations will follow. Pretty sure I'm not alone in my chain of thoughts.

[kurtkempen]

One step better is to use a credit card for all of your daily/monthly expenses. Credit cards have no interest as long as you pay it off before the billing cycle ends. You pay off your credit card in full out of your HELOC. This would give you up to an additional 30-35 days of interest free money for your monthly expenses.

[mikeharris]

This absolutely works, however there are some caveats:


1. You MUST be cash-flow positive...and preferably by a decent amount.
2. This works best on a first-lien HELOC, not a second
3. You MUST have stellar credit, otherwise the banks aren't even going to talk to you
4. You MUST be disciplined and not spending your HELOC as a credit card, buying vacations and cars, etc. because you have extra cash.


I put all of my paycheck on the HELOC and keep as little as possible in checking. I pull from the HELOC, as necessary, to pay for expenses. Otherwise, I put everything I can on my rewards credit cards and pay those off each month (see point 4, above). I have put my amortization schedule from my old 30-year mortgage against what I have done in 2 years and I have saved 7.5 years of mortgage payments in the 2 years I have used HELOC. I haven't done anything differently. My volume of interest paid is substantially less. I'm really oblivious to the rate.


It's not for everyone, clearly. The math doesn't lie. Just wanted to add some perspective.

[NickD]

This stuff needs thought in high school!!!! 41 years old. And just leaned about this! Geez

[rodrigito]

The strategy starts at minute 10:00 - but the intro is def well worth it.
Thanks Kwak !

[MrDarkshadow]

Excellent explanation for a beginner! Needed this 10 yrs ago😬

[glendaroberts]

As of Sept 2021 average HELOC Rates were at 4.2%. I just refinanced my home that I’ve owned for just 3 years now and cut my rate from 4.8% to 2.3%. I cut my 30 year mortgage and made it a 15 year one and kept my monthly payments the same. From what I see the refinance under these terms was a better option than a HELOC.

[gamaloun]

Steve this is the Best video I have ever watched that covers this subject!! I wish I watched that video before I took out my home loan.

[lovereconciled]

A HELOC is still debt! It is from mortgage loan to HELOC debt. My husband and I paid off our first home in less than 5-years by changing our mindset, habits, spending with side hustles. We now have two homes completely paid for and debt free. We practice a zero debt lifestyle, no credit, loan, car or mortgages. In times like these it is a blessing, for sure. Unfortunately, debt is debt, no matter who you write the check to, so in my opinion having a mortgage with a HELOC does not equal debt free or freedom.

[brettbarnard]

Kwak Brothers: We just started this process for our credit cards.. We estimate to pay off over 60k in less that 12 months! Thank you so much for this, you guys are a life saver. Wish I knew about this years ago!

[maxinechivers]

I began my mortgage in 2010. I was going to pay it over 25 years. In 2012 I decided to pay it off in 10 years so it would end in 2022. Yet, due to overpaying it I paid it off in 7 years. Yes, I paid it off in 2017.

[SheilaYilmas]

Presently, mortgage rates have reached their highest point since the year 2000, spanning a period of 23 years. Considering inflation trends, there's a possibility that this figure might continue to escalate. To provide context, the 30-year fixed rate was only at 5% around this same time last year. Faced with this scenario, the question arises: should I continue waiting in anticipation of a potential housing market downturn before making a purchase, or is it more prudent to shift my attention towards the equity market?

[emmyoregon]

Remitting some percentage of my pay monthly to pay for a house then i went thoroughly into investing in anything I could lay my hands on, Stocks, ETFs and other financial commodities. After compounding profits over 5months I was $79k in profits and paid down for my first house. That was 2 years ago, now I own 3 condos. So the truth is to invest not save try generating streams of income so you don’t end up enslaved

[cavemanabc]

Thank you! I’m glad you broke this down into daily actions to illustrate this strategy. It helped me to better understand this!

[battlestar]

Additional lump sum payments go direct to lowering your principal, which automatically reduces your long term interest costs.

[trevorbrown]

Great video. Been doing this for years. Paid off my mortgage a long time ago and now use it as my personal bank...I purchase all high value items like cars and bikes, new roofs, renovations from the equity in my bond....works like a charm....just ensure that you pay all the debt off in one year ..dump, dump, dump all your income, bonuses, windfalls, whatever into your bond

[jasontilli]

Licensed Credit Advisor here. Most people are Not disciplined enough for this method and will Never resist using available credit (equity). Pay your monthly payments. At the end of the month send any spare money in check form with subject “principle only”. This won’t be a miracle (unsafe) 5-7 plan but could save you years off the end.

[byaklangakwasinton]

Thats the best explanation mr. Kwak, home equity line of credit, heloc