30 Year Mortgage Paid in 77 Months (Velocity Banking)

About this video

• Video Title: 30 Year Mortgage Paid in 77 Months (Velocity Banking)
• Channel: VANNtastic!
• Speakers: Christy Van
• Duration: 16:17

Overview

This video explains how traditional mortgage payments can be a financial trap, leading to excessive interest payments over time. The speaker, Christy Van, advocates for using lines of credit as a tool to pay off a mortgage much faster, demonstrating a scenario where a 30-year mortgage could be paid off in 77 months, saving significant amounts of money and time.

Key takeaways

• Traditional Mortgages Trap: The video argues that 30-year mortgages, with their amortization schedules, front-load interest payments, causing homeowners to pay a large sum to the bank before significantly reducing the principal.
• Velocity Banking Concept: This method involves using a line of credit to receive income and pay expenses, allowing cash flow to reduce the principal balance more effectively.
• Mortgage Payoff Example: A case study shows a $135,000 mortgage balance being paid off in 77 months (6.5 years) by making strategic $10,000 payments from a line of credit every seven months, saving over $180,000 in interest compared to the original 30-year term.
• Line of Credit Benefits: Lines of credit, unlike amortized loans, can be used to pay down principal quickly, have simple interest, and offer more control over finances, allowing for faster debt elimination and interest savings.
• Empowerment and Awareness: The core message is to empower viewers with financial knowledge, encouraging them to examine their mortgage documents, understand the true cost of their loans, and take control of their financial future by utilizing tools like lines of credit.