Velocity Banking - The Truth about Paying off Your Mortgage Faster

0:00 Introduction
1:50 The sales pitch from all the guru's out there
3:11 Clips from the original video
7:20 Breaking down the example that is often used to sell velocity banking
21:27 What I think is the best way to pay your mortgage faster

#velocitybanking #heloc #schoolofpersonalfinance #richmccormack

Velocity Banking and paying off your mortgage faster - There are so many channels out there trying to sell you on the velocity banking concept and convincing you that they can teach you and coach you to pay off all your debt in 5-7 years. After running the numbers I can say with certainty that is it just not true.

Using a HELOC can help pay off your mortgage faster, but there are a lot of variables and it requires financial education.

Do not use a credit card at 21% interest to pay chunks at your mortgage.

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To Becoming Great with Money,
Rich McCormack, CFP

[SchoolofPersonalFinance]

Let's hear from all those people that have used velocity banking to pay off their debt without using any of their own money....

[marktratwo]

Currently doing velocity banking using a heloc. Started 6 months ago and I've already paid off 38k principal on my mortgage. One major thing you need to understand is you must have positive cash flow for it to work. If you spend more then you make and have bad money habits its not for you.

[tomwilkinson]

I used a 1st position heloc to pay off my home, then a townhouse, and then a 200k property. It absolutely works if you have the cash flow and live below your means.

[dhill]

We paid off our house with a HELOC 2.74% interest rate. We then use a credit card to pay all our bills. We have traveled free on points. 80k took us 11 months to pay off. Velocity banking worked great for us. Only issue is you have to be disciplined to pay credit card before interest is accrued. We are now looking to buy our second house via velocity banking.

[genavazquez]

Every crash/collapse brings with it an equivalent market chance if you are early informed and equipped, I've seen folks amass up to $1m amid crisis, and even pull it off easily in a favorable economy. Unequivocally, the bubble/ collapse is getting somebody somewhere rich

[rocky]

One thing your forgetting is if you pay off the credit card for your bills before 28 days you won’t have to pay the interest on the card.

[CRose]

Explained very well. It scould have helped me a lot if the title had been--"don't us credit cards for velocity banking--us a HELOC."

[simplyjones]

We paid our 400k house in 8 years using HELOC. So I think it worked great.

[NicholsHomeTeam]

I think one thing that is overlooked in this video is nonmonthly, expenses that most people save up for as cash in their checking accounts. I have $x saved up in case of an auto repair, $x saved up to use during christmass, same for insurance premiums, medical/doctor visits, vet visits, home repair funds, clothing funds, ect. The advantage of VB in my opinion is all of that cash rather than sitting in your bank account is now being used to pay down your debts and is still available if/when you need it.

[florencepl]

Thank you for making sense of this!!! No smoke, no mirrors - thank you ☺️

[kimbrough]

Bravo. I teach the Infinite Banking Concept and we use Velocity Banking to pay off all debt in 9 years or less. I don’t think I’ve ever heard anyone explain this that well. Great content.

[FengV]

Loved he breakdown and the interest calculated! Instead of just seeing mortgage, you stepped back and showed the big picture! Thank you

[Ponka]

Thrilled I stumbled on your channel! This is one of the best explained videos on this topic! You’ve just earned yourself a new subscriber, thank u! 👏🙌

[Udjeox]

Excellent presentation. I appreciate that you show the evidence as you speak. Nobody has expired this concept better than you.

[markpaskett]

Loved the video! I have always known this about "velocity banking". Those who understand interest, earn it. Those who don't, pay it. It is clear who understands and who doesn't.

[kcwilmot]

You explained this so well. Showing true number comparisons.... I've watched several velocity banking videos & it sounded great but I just felt like something was missing, just wasn't convinced. With ur video it finally clicked & I now understand. So thank you for saving me the trouble of having to find out the hard way that its not better to be using that credit

[davebaldwin]

Great Video! I like how you broke down both sides to get real numbers. I have used velocity banking in the past to help pay off my mortgage and thought it was a great thing. This however, makes total sense.

[beekaye]

Great explanation. I needed this. I used my Heloc to get rid of 28K in debt and 21K on my car. I also started put my money in my whole life insurance and paid back the Heloc

[alexa]

The reason I used a line of credit instead of paying the extra money towards the loan is that when the line of credit is paid off, I can use the line of credit again and again. That gave me a sense of security in case life happened and I needed to use funds to pay any emergencies.

[danielmelton]

Finally, someone who is helpfull without any of the bs! Sadly I was never really taught finances growing up, so I need things broken down as small as possible to understand. Thank you for this!