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: 00:16:19

Overview

This video explains how traditional mortgage payments can be financially draining due to interest accumulation. The speaker, Christy Van, introduces an alternative strategy using a line of credit, often referred to as "Velocity Banking," to pay off a 30-year mortgage in significantly less time (77 months) and save a substantial amount on interest.

Key takeaways

• Traditional Mortgages are Costly: The video highlights how the majority of early mortgage payments go towards interest, not principal, leading to a long-term financial burden. A 30-year mortgage with a 7.75% interest rate on a $135,000 balance results in over $213,000 in interest paid over 30 years.
• Velocity Banking as an Alternative: This method involves using a line of credit (personal, HELOC, or first lean HELOC) to manage income and expenses. By depositing all income into the line of credit and paying all expenses from it, the balance is reduced, thus minimizing the interest accrued.
• Accelerated Debt Payoff: The video demonstrates that by strategically making extra payments (e.g., $10,000 chunks every seven months) from a line of credit to the mortgage principal, a 30-year mortgage can be paid off in 77 months (6.5 years).
• Significant Interest Savings: This accelerated payment strategy can save tens of thousands of dollars in interest. In the presented scenario, paying off the mortgage in 77 months saves over $176,000 in interest compared to the original 30-year plan.
• Taking Control of Finances: The core message encourages viewers to understand their loan terms, explore alternatives like lines of credit, and actively manage their finances rather than being passively dictated by traditional banking products.