How To Pay Off Your Mortgage In 5 Years (Proven System)

What’s going on everybody. So in today’s video I’m going to be going
over how to pay off your mortgage in five years or less. This is actually based on a book I just read. It was an amazing book. I’ll put a link to it and I’ll just go over
10 things I learned from this book as well as how to pay off your mortgage in five years
or less. So overall, this was a very quick read, a
very short read, but tons of value. You know, there’s a lot of people that think
to write a book it needs to be five hours long. This book was probably under 50 pages. It probably took 30 minutes to read. Definitely recommend checking it out. And the author has actually used this strategy
according to what he says to pay off numerous houses and he’s continuing to do this. It’s a really cool, unique strategy that you
don’t really hear too much. You hear a lot of people saying if you make
one extra mortgage payment every year, you pay it off in 21 years as opposed to 30 years. So the basic strategy is this. You basically take out a HELOC and you use
that HELOC to pay down the principle of your mortgage. I’ll explain in a little bit more detail. If you have a steady job, decent credit, and
a little bit of equity in your house, what you can do is you can apply for a home equity
line of credit with your local bank. This author actually recommends talking to
three or four local banks. He emphasizes local as opposed to some national
bank just because they’ll have better terms, they’ll understand the values a lot more and
you could probably get a better deal. So shop around for a HELOC and once you get
a HELOC of let’s say $40,000, $30,000, $50,000, whatever it may be, the idea is that you’re
going to take that entire chunk of money in the HELOC and put it toward your principle. If you put $50,000 toward your mortgage, that
would obviously take out a huge amount from your payment. You still have to pay off the HELOC. What he recommends doing with that is just
putting your income, putting all of it toward your HELOC to pay that down. Obviously you still have expenses and things
like that. It’s not like you’re just going to pay off
let’s say $30,000, $40,000, or $50,000 just in a couple of months or anything like that. But, if over the course of the year, you direct
deposit all your money into that HELOC, you take out for expenses and things like that,
you can relatively pay off that HELOC usually within a couple of years. And then what you do once you pay off the
HELOC, you take out another HELOC and this time you’ll have much more equity in the property. So let’s say you took out an original HELOC
of $50,000. Once you pay that down and you’ve paid the
$50k toward your mortgage principle, you take out another HELOC for let’s say $100,000 because
you’d have $50k more equity in the property. And you take that $100k and then you put it
toward your principle. You just keep repeating this process over
and over until your mortgage is paid off. He’s done this, like I said, numerous times. It’s a pretty unique strategy. Really the whole idea behind it, and I’m not
a finance person so maybe a finance person could poke holes in this argument. So the big idea behind this principle is that
a HELOC has simple interest and a mortgage had aromatized interest. It’s better to be paying simple interest than
aromatized interest so you use the big chunk from the HELOC, put it toward the aromatized
interest, and it’s going to turn out better for you and pay off your mortgage faster. It’s a pretty unique strategy and obviously
you can take out huge chunks out of your mortgage and possibly pay off your house in five years. It’s definitely a strategy I’m going to try
out. Let me know what you think about this strategy,
if you think it’s worth it, if you think it doesn’t work. Whatever your opinion is, definitely let me
know. So comment below and I’ll see you in the next
video. All right, bye.

3 thoughts on “How To Pay Off Your Mortgage In 5 Years (Proven System)

  • I understand the concept, but what people should keep in mind that even if they take a 50k HELOC and put it towards their mortgage principle, they will still have to pay the same mort amt each month in addition to a $50k HELOC payment.

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