Fastest Way to Pay Off Your House (we did it)

Are you on a wealth-building journey and looking for the fastest way to pay off your house? In this video, I'll be sharing the exact strategy my wife and I used to get over 200 months ahead on our mortgage in less than eight months. Sound too good to be true? Stick around and find out how velocity banking with a first position Home Equity Line of Credit (HELOC) can help you pay off your home fast without making extra payments.

We'll dive deep into the concept of velocity banking and how it can help you achieve true wealth, time, and freedom. By leveraging a first position HELOC, you can replace your mortgage and enjoy lower interest rates. I'll break down the steps we took and provide a real-life example based on a $300,000 home.

But before we get started, let's set some ground rules. It's essential to understand velocity banking and ensure there is positive cash flow in order to use a first position HELOC effectively. We'll also ignore Private Mortgage Insurance (PMI) in this example.

Throughout the video, we'll explore the differences between first and second position HELOCs, the benefits of using a first position HELOC, and how it can accelerate your journey to debt-free homeownership. I'll also address common concerns about using savings and demonstrate the power of leveraging a HELOC compared to traditional mortgage payments.

If you're a visual learner, don't worry—I'll provide charts and graphs to help you understand the numbers and concepts. Whether you're new to velocity banking or looking for a more efficient way to pay off your mortgage, this video is packed with valuable insights and strategies.

Ready to take control of your financial future? Watch the video now and discover how velocity banking with a first position HELOC can help you pay off your house faster than you ever thought possible. Don't forget to like, subscribe, and ring the notification bell to stay updated with our latest financial strategies. And for even more exclusive content and resources, visit our website. Let's accelerate your path to financial freedom together!

CHAPTERS:
00:00 - Introduction to wealth building journey
00:26 - Introduction to velocity banking and its benefits
01:11 - Example of a traditional mortgage and its long-term cost
01:52 - Leveraging home equity to generate wealth
02:35 - Understanding the concept of velocity banking
03:46 - Paying off a 30-year mortgage vs leveraging a HELOC
05:23 - The advantages of using a first position HELOC in velocity banking
08:26 - The financial impact of using a first position HELOC
09:32 - The potential savings and interest reduction in velocity banking
12:33 - The accessibility and flexibility of a first position HELOC
15:19 - The accelerated progress achieved through velocity banking
17:32 - Comparing the long-term costs of a mortgage and a first position HELOC
18:20 - Addressing potential concerns and misconceptions about velocity banking

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My goal is to take something that seems so complicated and make it easy to understand. Please let me know how I'm doing and if you have any further questions you'd like me to answer here, or topics covered. I'm happy to do them and would appreciate the feedback.

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DISCLAIMERS & DISCLOSURES

This content is for education and entertainment purposes only. Donnell does not provide tax or investment advice. The information is being presented without consideration of the investment objectives, risk tolerance, or financial circumstances of any specific investor and might not be suitable for all investors. Past performance is not indicative of future results. All investing involves risk, including the possible loss of principal.

[selfdirectedDONNELL]

✅Grab Our Free Velocity Banking worksheet here: at selfdirected.info/live.

[tashatash]

Thank you for the free game brother! I am getting my first Heloc to consolidate my debt and boost my credit score to prepare me for purchasing for my second home hopefully next year

[confusedzentradi]

Ooohhhh...I'm first to comment. You are comparing a $1, 432 payment on a 4% loan with a $3, 000 payment on a 7.03% loan. You can pay $3, 000 on the 4% loan, nothing stops you from doing it. Likewise, you can pay $50, 000 in a lump sum on the 4% loan. You keep saying that paying on a mortgage/home locks the money away. This is false. You gain equity, and this is no different than paying the "first position HELOC." In both cases you borrowed money to buy the home, you make payments to keep the home and in doing so you gain equity. If you ever need cash, you can get a HELOC when you have a mortgage. The difference in your scenario is 4% vs 7.03%.

At the beginning you said using the HELOC, with thew 7.03% rate, you payoff the loan in 12.75 years, which is 12 years and 9 months, or 153 months. If you make the same $3, 000 payments on the 4% loan, you payoff the loan in 122 months...beating your "strategy" by 31 months. This is without the $50, 000 lump sum payment. If you make that payment, the 4% wins even more.

When you show the calculator and amortization schedule, you are not comparing them using the same schedule. You are using $1, 432 payments vs $3, 000 payments (which I already said above).

You talk about PMI in the beginning as a red herring, as you later state the house is worth $400K and you're only borrowing 75% or $300K. No need to mention PMI at all.

Lastly, HELOCs do have a required monthly payment. Can you show me the math on how you calculate that required payment? When you make the payment, how much is allocated toward principal and how much is allocated toward interest? (I understand you stated the payment would be $3, 000, but is that what the bank requires or just due to the cash flow the example person has?)

The thesis of your "strategy" is to refinance a 4% loan into a 7.03% loan and tell people that is a good thing? Of course, you have seen all these points before, on the 2 hour version of this video that you and I had a dialogue back and forth. You chopped it down to 20 minutes, but wrong information is still wrong information. ^_^

[richardkirk]

Totally confused by math. Clear as a bell with visuals.
Thanks

[AnthonyRushing-qj]

I love this!! #1 thing is that you've got to have positive cash flow!! That will make everything work with Velocity Banking, and if it's not there, will ruin the Velocity Banking strategy as well.

[DrFinancialLiteracy]

Awesome yes sir! Could you add the credit score criteria between 1st and 2nd HELOC or just let me know?

[frp]

have you heard of money max i know you have to pay but it sounds like they have an algorithm that cuts interest payments quickly

[dailstancill]

15:45 100 months ahead of what? You're trading updside (opportunity cost) from HYSA of 3% for interest savings in the form of equity. Interesting way to analyze amortization. Every real estate closing has a disclosure page showing total interest paid as % of home price. This is more for compliance than anything else. Once a dollar is earned how best preserve & grow it, is the question, Yoda says.