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If you are wanting to pay off your home faster on your current income, you should look at getting a home equity line of credit or a HELOC as they are called and you can pay off your home in 5-7 years. This video shows you how.
Hey gang, Michael Lush. I’m a fourteen recovering mortgage banker. What I want to talk to you about today is the basics of what we teach, using a home equity line of credit to pay off your mortgage in five to seven years literally without changing your budget. What I want to explain to you guys today is a little concept that I came across about four years ago. I had a mentor of mine, a very wealthy individual, explain this to me. One this that he explained to me is that a checking and savings account is actually a liability. I always thought of it as asset which really surprised me.
I thought if you had a bunch of money in your checking and savings account, that’s quite a bit of an asset. In fact I was completely wrong because today banks are giving you about a zero percent rate of return on your checking and savings account. However inflation is going up on average about one point six percent. Technically your money is moving backwards. What he explained to me is that money cannot remain stagnant, it’s either got to north or south.
You’re actually losing money every day by putting your money in a checking and savings account, thus your checking and savings becomes a liability. What we’re going to do is we want to show you how to bypass that systemic problem and actually use a home equity line of credit as your checking account, because what’s cool about a home equity line of credit is it’s open ended. Money can move in and out freely, twenty four seven, three hundred and sixty five days a year. Instead of using your checking account and allowing the bank to then turn around and give your own money back to you in the form of mortgages, credit card and car loans, we’re actually going to use a home equity line of credit. You’re going to deposit all of your money into a home equity line of credit just like it was your checking account and then you’re going to pay your bills out of it just like you would as a checking account.
By doing that you’re actually going to accelerate the payoff of your mortgage and cut your mortgage at least by one third. Hold up. I don’t think that’s right. You’re cutting by two thirds actually. You’re getting it paid off one third at a time. Instead of having thirty years to pay for a mortgage you’re actually going to get a home equity line of credit using your existing cash flow and nothing more, not paying more, not paying less, just changing where your cash goes and you’re going to get a home equity line of credit paid of in five to seven years.
Now this is the basic concept of what we teach. We actually go further in depth and we get in some extremely advanced strategies that can accelerate it even further. This is a great tool to build wealth and we get into those as well. Be sure to check out our other videos and subscribe to our channel here. Look forward to hearing from you. Take care gang, God bless. Thanks for watching the video, if you like that one I actually picked two more for you that you can watch right here. No.
Speaker 2: The other way, point the other way.
Michael: This way?
Speaker 2: Yeah.
Michael: Actually I picked out two more for you that I’d like for you to watch. When you get done I’d also like to you subscribe to our channel, take care.
Home Equity Line of Credit Trap – Your home is not an asset by my definition (7 of 18)
Do you remember my definition of an asset earlier in this course? If you use my definition you will soon realize that your home is not really an asset.
Actually, come to think of it, I consider it more of a money pit. In this lecture I throw convention to the wind and explain why I think this is the case. As I have taught in previous lectures in this online money course, building wealth is all about managing cash flow.
When you increase your line of credit you are not on the right track to building wealth. You are digging yourself a hole that will take ages to climb out of.
Many of you may not agree with me. Unfortunately, that is one of the problems that is holding you back from achieving financial independence.
To view and take the entire course in sequence, just go to the following web page:
http://real-101.com Watch more episodes
http://www.TraceyBrock.ca Mortgage Broker
A home equity line of credit is a great option when homeowners are looking for some extra cash to do some improvements or renovations, put kids through school, vacation, and much more. In order to qualify for a home equity line of credit, homeowners need to have some equity built up in their homes. The lines of credit are typical borrowed on the equity of your home so without it you will need to look at other options of securing borrowed funds.
Lines of credit are fantastic to have and often the interest rates can be much lower then borrowing or using money off your credit card. Credit cards typically have high interest rates therefor it may take you longer to repay the borrowed money. A home equity line of credit can typically be attached directly to your bank account so you can use it and have access to the funds whenever you want.
Watch this episode with real estate agent Joe Terceira, and mortgage broker Tracey Brock of Dominion Lending Centres where she will discuss some options for a home equity line of credit.
For more information on mortgage financing or if you need a mortgage broker, contact Tracey Brock of Dominion Lending Centres.
Mortgage Broker M09001257
Fantastic Properties For Sale In Mississauga, Brampton, Milton, Oakville, & Toronto
Joe Terceira / Sales Representative
Home Equity Loans and HELOCs both allow you to leverage the available equity in your home to finance big purchases. Learn more here about the similarities and differences between Home Equity Loans and HELOCs. Video Rating: / 5
< things type =" application/x-shockwave-flash" style =" size:425 px; elevation:355 px; "data ="// www.youtube.com/v/R-BE6SXvLqk?color2=FBE9EC&version=3&modestbranding=1" > When you’re battling making ends meet as well as thinking about alternate options for instant money, it can be tough to choose a personal finance or a line of credit score. CNBC’s Sharon Epperson breaks down the benefits to every and also which alternative can be best for you.
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