How to cut 15 Year Mortgage In Half
How To Pay Off Your 15 Year Mortgage Faster Using Velocity Banking | A Faster Way To Pay Off Debt!
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so you're a financier 30-year mortgage
into a 15-year mortgage and now you want
to use velocity banking to pay it off
even faster well let's see how quick we
can get it done in today's training hey
everyone it's Mike Adams and on this
channel we empower individuals to
achieve freedom through improved
financial literacy if you're new to the
channel make sure to click subscribe and
click the bell so that way you get
notified on any and all of our future
training so in this video we're gonna be
discussing how fast can you pay off your
15-year mortgage using the velocity
banking strategy and and again this is
whether if you just straight-up start
with a 15-year mortgage okay or if you
were in a thirty year and now you're
gonna let's say because again that's
very popular right now you know every
bank out there is trying to get
everybody to refinance and again pay
attention to that guys you know when you
see the bank saying hey we want to give
you money understand that banks are in
business to make money and they make
money by lending money and charging
people interest and the Federal Reserve
is making it very very cheap you know
they've knocked they're talking about
negative interest rates now but that's
gonna keep money borrowing cheap you
know that they want to keep those rates
nice and low so people will keep
borrowing and keep borrowing keep
borrowing and the banks are really
trying to get your equity right they
want to be able to control your equity
you know if the markets gonna crash the
value of the dollar goes down whatever
if the banks are actually controlling
the equity guess what you're still on
the hook and you still all money with
interest and if anything they can
foreclose and take back your property
kind of like what we saw in o eight but
let's say you did a refinance but you
did it into a 15-year okay so you didn't
just reset the clock on yourself a lot
of folks when they refinance they go
from a 30-year they pay it down five
years and they go back into thirty more
years and you're just totally resetting
the clock on yourself and you're eating
the heaviest portion of loan interest on
the front end of that loan so you just
eat that over and over and over and it's
creating a scenario where we have
millions of individuals moving into
retirement with a mortgage okay versus
having that thing paid off so we want to
use velocity but we want to get this
mortgage paid off so how quickly can we
do it on a 15
your mortgage so let's say we went the
refinance route you refinance into a
15-year mortgage and the average
homeowners in refinance after about five
years in the property so going down two
months 60 using our trusty loan
amortization calculator okay which you
can download at think like multicom
slash calculator or slash calculator but
either way after five years okay we have
a balance here of one eighty eight
ninety five that would go into the new
loan you're creating a new loan so
there's gonna be new loan origination
fees they're junk fees title fees all
kinds of stuff in appraisal fees all
kinds of stuff going on that you're
either gonna pay out-of-pocket or get
rolled into the new loan okay so looking
at this one hundred eighty thousand
eight nine four so one eight zero eight
nine four okay and the fees usually are
between two and four percent so we'll
call it three percent just to stay right
there in the middle okay and I think
we're gonna end
okay so fifty four hundred roughly fifty
four hundred dollars so 54:26 in fees
okay so we're gonna take that number and
add that okay to the one hundred and
eighty eight nine five point zero three
because again if we're doing to
refinance there's gonna be some fees
there so let's add our three percent
closing costs just to make it as square
as we can and that would change this
number to this number okay so one eight
six three two one eight eight one eight
six three two one point eight eight okay
so this you know if you're going from
the thirty after five years into the
fifteen this you know and again you know
with going to the fifteen chances are
we're gonna be able to get a little bit
of a better interest rate so what we're
gonna do is we're going from the four
percent interest rate that we had on the
original loan okay now they're going to
a fifteen you're going down to three
point five percent and again it's gonna
take good credit okay and in this
current economy you need some good
credit and some good cash flow and some
good income to qualify for a 15-year
mortgage so let's say you have all that
in place we're able to qualify for this
new loan and then we're gonna pay it off
in fifteen years here okay and so our
payments are now thirteen thirty-one
okay compared to the 954 dollars that
they were okay and so on again by making
just that maneuver you know we're
looking to save some big-time money here
in interest you know if we're stuck and
stay with the same loan and kept making
monthly payments you're paying one forty
three seven you know and you're five
you've paid thirty eight one ok 38 184
of this right so you pay you shelled out
almost 40 grand of that within the first
five years so you paid this so
thirty-eight 184 okay so three eight one
eight four okay and then we'll add that
to the new loan number here five four
four three four or five three four three
four and we looked at that again
five three four three four plus five
three four three four
was that point nine nine yep point nine
equals so by doing this you know which
is really really cool you know we're
able to go from one hundred forty three
seven in total interest on your mortgage
under forty thirty seven thirty nine all
the way down to ninety one six one eight
okay so then that's a savings of you
know over fifty thousand dollars okay so
over fifty two thousand dollars okay but
can we save a little bit more right can
we save a little bit more money in
interest
so again just making that move does save
you money and interest and you sticker
those payments pay it off in fifteen
years you will realize that savings and
that's pretty juicy but can we pay this
up a little bit faster you know can we
use some of the additional techniques
that you've learned about on this
channel in order to pay this new 15 year
loan off faster and so this is what we
bring in velocity banking this is where
we bring in a line of credit and start
doing what's called chunking and if
you're not familiar with chunking I'll
put a link below this video I did a
training about chunking awhile back and
you can take a look at that to learn
more about what chunking is but the
process of velocity banking in a
nutshell and again if you haven't seen
the main overview definitely check that
out put that link below as well but the
point is we want to maximize our cash
flow what the bank wants is they
wants to segregate all of your money
they want your money going to this bill
this bill this bill this bill this bill
minimum payments they want money in your
savings account checking account money
market accounts whatever they got going
on they want to segregate all of your
money okay and what we know on this
channel is if you could pool all your
money together that's when you can get
all of your money working for you okay
so with velocity banking what we're
doing is instead of using a bank
checking account we are using a line of
credit whether that is a HELOC or a
credit card or a personal line of credit
we're using one of those lines of credit
as our new checking account we are going
to pay all of our bills using that line
of credit and then all of our income is
going to go into that line every single
month and so you have to have positive
cash flow obviously to do this strategy
but if you do as long as you're bringing
home more than you are spending all of
you're going to be working you for you
for maximum principal reduction and the
debt on that line will go down by your
positive cash flow number - any interest
that's being charged by the line but if
somebody was in position to do this
today
okay that means you probably have good
credit that means you probably are in
position where you do obviously you do
have positive cash flow otherwise you
wouldn't qualify for a 15-year loan
right so you do have positive cash flow
you do have employment I mean all these
things are going on and you have the
credit to go ahead and get this slightly
reduced interest right down to three
point five so with all that being said
this person probably has a credit card
in their wallet so what we're gonna use
here is a fifteen thousand dollar line
of credit and again there's other videos
on the champion or we talked about
different credit cards and different
lines of credits that you can get and
what we really want are the designs with
really good either a introductory rates
or B 0% interest offers and there's a
ton of really great credit cards out
there that again if you have credit to
support this kind of a loan okay chances
are you may be able to qualify for a
line of credit that you could then use
to do this strategy of chunking okay
so let's assume that we had a fifteen
thousand dollar line of credit that was
gonna give us zero percent interest for
twenty four months
okay and so we had that and your monthly
bills are about three thousand dollars
okay and you have about five thousand
dollars worth of income coming home
every single month so we got about two
thousand dollars in cash flow okay and
so let's say you've done this refinance
and you have this line of credit in tow
okay and right off the bat we're gonna
go ahead and make a chunk again your
monthly expenses are about three grand
so we got to leave some room on the line
of credit we can't just do a fifteen
thousand dollar chunk cause there'll be
no room on there for you to pay your
monthly expenses okay so let's go ahead
and make a $12,000 chunk okay and so
right off gem Street you got your new
fifteen year and right off the bat
you're gonna do a $12,000 chunk okay and
what we've already seen just instantly
is almost an eight thousand dollar
reduction in interest
okay we've instantly seen a 14 month
reduction in the payoff of the loan
right now we have to sweep down this
line of credit by sending all of your
income to the line paying all of your
expenses to the line and every month
it'll go down by your positive cash flow
number - any interest is being charged
by the line okay and in our example
we're using a 0% interest line they gave
us 24 months so with our two thousand
dollar cash flow number it's gonna take
six months so one two three four five
six okay and now all the line of credit
has been paid down to zero okay giving
us the opportunity to make another chunk
and by doing that second chunk we've now
saved in additional $7,000 roughly worth
of interest
okay we've knocked several another year
off of that 15-year mortgage okay so
let's do another six months here one two
three four five six okay so the balance
on that line going down by our two
thousand dollar cash flow number every
month that line are we paid off and be
available for use again after six months
so we could make another chunk okay so
boom that brace from 38 and interest
down to 33 so we're starting to save
some serious money here in interest
let's make another six months four five
six and then we can do one more final
chunk on this line of credit and and
this is what we have that 24 months at
0% interest and there are offers out
there if you you need to do the due
diligence do your research make sure
your credit is in OnPoint but again if
you're able to qualify for a 15-year
mortgage in this day and age right here
right now chances are your credit
is in order and if you know about this
strategy you can do the proper planning
to have this line of credit ready ready
to go or even have one of your own lines
of credit that you already have you've
already had that thing paid down for a
long time and you can request 0%
interest and if you have the credit to
support it there's a very good chance
that the bank will give it to you
otherwise you can find a different bank
that will but let's go one two three
four five six okay and so now here we
are
okay we're two years in now on this
15-year mortgage we've been able to make
four chunks and we've already reduced
the amount of interest and you're gonna
pay on this loan all the way down to
twenty eight thousand six hundred and
sixty two dollars okay since we were
able to get zero percentage just on that
line
we've just realized a huge huge huge
savings let me go boom boom boom boom
because we're gonna pay fifty three four
now after making a couple of chunk
payments again now we're we've saved
twenty five thousand dollars worth of
straight-up interest I would normally
just go to the bank okay let's go out
six months one two three four five six
because we want to keep chunking and at
this point your credit cards like okay
now we have to charge you interest and
you know what I teach folks to do is
before you just reuse that line you know
when we're getting it down let's say
three months ago about right here okay
we're gonna start thinking about okay is
this line of credit are they willing to
give me more time at zero interest or do
I need to and that would be where you
renegotiate or do you need to look
elsewhere right it's been a couple of
years now you've been paying down this
mortgage really really well your cash
flow is maintained so in this scenario
your credit it's gonna be pretty darn
good you may be able to shop around and
get a new line of credit because the
goal here is to get 0% interest on our
lines or as low to zero as possible so
that way we can realize this maximum
savings but again still you know even if
we had a little bit of interest on this
line of credit again it's gonna pale in
comparison compared to the 25 grand
we've already saved in interest okay but
let's say we were able to again we got
this great credit let's renegotiate or
reapply somewhere else for another zero
interest line so we can keep this going
okay
two three four five six and we can make
that fifth chunk okay one two three four
five six one two three four five six one
two three four five six one two three
four five six and just look at this so
one two three four five six
oh we're done so let's see we did this
chunk here guys look at this
so yeah boom and then we just sweep it
down so we you know the mortgage itself
will be paid off in 63 months okay but
we still have a little bit on line of
credit so you still have one two three
four you still have two more months okay
boom boom to sweep down the 12 grand
from the line of credit okay but we're
able to pay this thing off in 63 63
months
you know it took 63 payments on top of
making these 10 chunks okay so it took
us 10 chunks in order to do this so
leveraging a line of credit using when
you add velocity banking to the mix okay
if you're looking at the 15-year or
refining you maybe you just refinance
into a 15-year to save money on interest
pay it off sooner if you add velocity
bank and/or add the velocity banking
concept to your life maximizing your
cash flow using a line of credit instead
of a checking account and then again
making those chunk payments and once
you've made that chunk all your expenses
get paid by the lines he made the chunk
all your income goes into the line
knocking down the balance all of your
expenses are paid by the line bringing
it up but then all your income hits it
and as long as you maintain your
positive cash flow which we did here
over these five years the debt on the
line of credit will down by your cash
flow number - any interest that the line
is actually charging you and in this
example we use a zero percent in
first line that were able to use and now
a new might be think well what kind of
line of credit Mike is gonna give you
zero percent interest for that long well
chances are not one line of credit is
gonna give you you know five straight
years at 0% interest but there's plenty
of cards out there if you have good
credit that'll give you 18 to 24 months
okay and once that time runs out either
again renegotiate or reapply somewhere
else with your good credit to get 0%
interest somewhere else and I'll tell
you know and I've done this where if you
have one card that you've used for a
couple of years at 0% interest then you
stop using them and you move to a
different card that's giving you present
0% chances are these guys are probably
gonna send you an offer saying hey you
know come park it back over here again
we'll give you the 0% so you can play
that game a little bit with the banks
but the bottom line is what we see is
even with this newly refinance loan you
know you can make those payments
straight up and pay it off of 15 years
and save a ton of money versus the
thirty-year but if you add velocity
banking on top of your 15-year mortgage
you will save big time okay so hopefully
you guys found value in this training
and in this breakdown if you did make
sure to give it a like give it a comment
below and I will see you in the next
video
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