Velocity Banking: The Best Strategy to Pay Off Mortgages and Credit Card Debts Faster

Today, we're diving into an exciting financial strategy called Velocity Banking. But don't worry; we'll break it down into simple terms so everyone can understand. So, let's get started!

Paying off a mortgage can be a burden, and many of us dream of owning our homes outright without the weight of debt. Unfortunately, there aren't many legitimate options or solutions to help us pay off our mortgages faster, aside from making larger monthly payments.

However, a method gaining attention is called velocity banking, which claims to enable you to pay off a 30-year mortgage in as little as five to seven years!

To leverage velocity banking effectively, there are certain requirements as well.

Home equity: You need some equity in your home, although a substantial amount is unnecessary. Sufficient equity is needed to qualify for a Home Equity Line of Credit (HELOC), which uses your home as collateral.
Good credit score: A solid credit score of 680 or higher is preferable to qualify for a HELOC or other credit facilities.
Credit card for living expenses: You will need a credit card to cover your regular living expenses, which will be paid off using HELOC funds.
Positive cash flow: It's important to have a positive cash flow, meaning your monthly income exceeds your expenses. This surplus allows you to allocate more funds toward paying down your mortgage.

While substantial equity is unnecessary, having more equity in your home enables you to obtain a larger line of credit, accelerating your progress in velocity banking.

The main reason to consider velocity banking is that with a traditional 30-year mortgage, a significant portion of your monthly payment goes towards interest during the initial years. Looking at an amortization table reveals that only a small portion of the payment is applied to the principal. Over time, more payment is allocated to the principal, but it takes a while to make noticeable progress.
Velocity banking aims to reduce the mortgage balance faster by making larger principal payments. Doing so can decrease the amount of interest paid over the long term. The faster you pay the principal, the less interest you'll ultimately pay.

So, how does Velocity Banking work? Well, it's all about using a line of credit as your main account and using any extra money to pay off your mortgage or other loans.
Let's go through the steps involved in velocity banking:

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[thomasxxxxxx]

NEVER use velocity banking to try and pay off your mortgage
You will end up paying MORE interest, taking on MORE risk, paying additional fees and wasting quite a bit of time