HELOC to Pay Off Mortgage... Why Does it Work?

Curious about using a Home Equity Line of Credit (HELOC) to bid farewell to your mortgage? Dive into our latest video where we demystify this intriguing financial strategy. Join us on an illuminating journey as we uncover the secrets behind why tapping into a HELOC can fast-track your journey to mortgage freedom.

Explore the ins and outs of HELOCs, discover the reasons they're a game-changer for mortgage payoff, and learn how to navigate potential hurdles along the way. Whether you're a homeowner eager to optimize your debt repayment plan or simply intrigued by innovative financial tactics, this video promises valuable insights to empower you on your homeownership journey. Don't miss out on this discussion that could revolutionize your approach to mortgage management and pave the way to financial freedom. #HELOC #MortgageFreedom #DebtStrategy #FinancialFreedom #HomeownershipGoals #SmartFinance
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**DISCLAIMER** The suggestions, advice, and/or opinions that are given by Sam Kwak and Daniel Kwak (The Kwak Brothers) are simply opinions. There are no guarantees of set outcomes. Listeners, guests, and attendees are advised to always consult with attorneys, accountants, and other licensed professionals when doing a real estate investment transaction. Listeners, guests, and attendees are to hold The Kwak Brothers and its brand harmless from any liabilities and claims. Not all deals will guarantee any profit or benefits. Listeners, guests, and attendees are to view and listen to all materials and contents furnished by the Kwak Brothers as a perspective based on experience.

[themillennialwealthcreator]

What I haven't heard talked about is when you use a credit card to pay expenses throughout the month (in this example, $4, 000), assuming you get at least 1% cash back on that credit card, the cash back rewards would actually cover the monthly interest expense of the HELOC in this example plus more. So, when done right, you could actually get paid to implement velocity banking. Seems pretty sweet to me. Am I missing something here?

[grantneil]

Can you go more into depth of paying down the heloc after a chunk payment while also paying monthly mortgage?

[christ.]

Aside from numbers I think an important concept is intentionality. Every chunk of money is a time commitment to focus on paying down the mortgage.

[bryanfulton]

A perfect visual aid for a solid explanation of why this works. Well done sir!

[MultiBond]

Would it be better to use a zero % credit card offer to pay down the principal on that mortgage as long as you can pay off the balance of the credit card in the 12 months period promotion?

[kwaddy]

Sam, again a great video. Very clear. Short and sweet.

[Jenz-jr]

Question 🙋‍♀️ if you had to pay off debt to get a heloc which used 1/2 do you put your salary towards that toll paid off then you use it for your mortgage?

[naren]

My mortgage balance is $180, 000 at present. Amortization left 25.5 years. The renewal date is coming in 6 months. I have Home Equity Line of Credit of $200, 000. Should I pay off my whole mortgage through HOLEC? So that, I plan to finish my balance loan at my terms within 10 years by making lum-sum payments time to time.

[jorgiewtf]

We have a 3.2% interest rate on our cause we bought it back in 2019. With interest rates being at over 7% in 2024, do you really think this would help us pay our home faster? Also, how will we be paying off the HELOC payment at the same time?

[ksantos]

Will this work if you have other debt.. like another personal loan or something like that.. or even a car loan?

[tysonclarke]

I have a commercial loan with a redraw facility.

Does anyone know any loans/credit cards that have a zero interest period for a transfer?

[aaronjennings]

Is the credit card a requisite for the velocity scheme, or is it sufficient to have a HELOC alone?

[curtisdiggins]

My question is how much are you paying on your mortgage a month? Are you paying the regular monthly payment or are you just throwing a big chunk at it every month?

[troycueno]

I would love to take advantage of what you're saying. But it's still is confusing to me and I can't seem to wrap my head around how this works. Is it possible to talk to you one-on-one?

[devellwilson]

Excellent video thanks for the knowledge...

[tengoken]

Why wouldn't you just pay down the principal? You still get the lower rate and it's a lot safer.

[specialorder]

Isn’t this only dependent on the fact that you can get a HELOC at a lower interest rate than the existing mortgage? As an example, let’s say I owe $100k on my mortgage at 3.25%… Wouldn’t I need a HELOC at a lower interest rate for it to actually benefit me?

[drewbittle]

So Im assuming this visual is a daily balance of your outstanding HELOC, after you've used 100% of that HELOC to pay toward your motgage?

[tylrjsph]

You can use a credit card the same way to pay off a car loan faster

[NIMBLESASQUATCH]

Aren’t you still having to pay your mortgage and now the 10k on the HELOC? Seems like you just increased your sources of debt. Now you pay your mortgage and the HELOC, so doesn’t the amount you pay each month increase (1, 000$ mortgage + whatever you pay towards HELOC)?