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So is it my imagination when i run the math on a loan i have for 4 years vs payimg it in 13 months with Velocity banking method ?? Or is the calculator not telling me the truth ?? Its just math...

While having a mortgage can provide a source of funds, rising interest rates can increase payments. To manage this risk, consider refinancing, creating an emergency fund, or choosing a fixed-rate mortgage

Sir. If those loans are paid one by one each paid off loan creates cash flow. So the payment to the next loan will be higher, next one will be higher. I am not sure you look at the problem that way. If vb doesn’t work, how come I am paying a 5 year car loan in 18 months with only 500 dollars of cash flow on average per month.

I just found your channel and you are excellent at explaining about finance

I pay and extra $300-$400 a month and I can see my principal going down much faster. The amount is $193k with $1,181 monthly payments.

Martinez Cynthia Moore Timothy Perez Cynthia

Thank you so much for this. Now I know to pay my condo that has an interest rate of 9%, rather than the ones with lower rates or gains. I’ve always heard this advice for credit card debts but never thought it also applied to home loans. 😅

in my opinion, housing market crash is imminent due to the high number of individuals who purchased homes above the asking price despite the low interest rates. These buyers find themselves in precarious situations as housing prices decline, leaving them without any equity. If they become unable to afford their homes, foreclosure becomes a likely outcome. Even attempting to sell would not yield any profits. This scenario is expected to impact a significant number of people, particularly in light of the anticipated surge in layoffs and the rapid increase in the cost of living

How to pay early = pay extra 😂 well, so obvious

Cashback and ease of use make the income through credit card method worth for me. I do get your point about putting the extra cash as an additional payment in the mortgage, but the point is that people don't usually do that. We need to take into account our psychology. The advantage of seeing things paid off, cash flow being greater, and having a simple strategy (I.e all your money goes here and expenses comes out of it) really do make a difference. You're struggling to show the minute financial disadvantages of a method not considering the huge psychological advantages. Plus, you did not followed up the method. You should do the HELOC scenario all the way through.

🔑That's why you don't use they full amount that's available to you when you make your mortgage monthly payment you can't access that 💰But with VLCT BKN you'll be able to pull money out/cash is 👑 . You only pay interest on what ur using. In the long run you'll end up paying your mortgage faster rather than 30 years you can pay it off 15 years early if you keep repeating the same process over and over.🔁🔁🔁🔁 Velocity B is way safer than a 401k if you knew how to use it responsibly.That's why some people in their 60th end up going back to work instead of 401k they should have use a Life insurance that's compound interest way🆙🆙🆙 not⬇️⬇️⬇️⬇️

I don’t think it makes sense if you have a low interest rate, you pay all of the interest up front as well - that money is better spent on higher interest returns

What do you do when your mortgage company says that if you attempt to pay biweekly that their system will just keep the money in another account until the full payment is received?That's when they will pay the mortgage with it.

Tickets ordered. Ordered 6 of them the first time I saw it advertised. No clue who’s the 5 other ppl are that will be going with me but, they’re welcome 😇😄

This guy must be a DEMONcrat.......

Velocity Banking for great for me.....

There is always two side to a story, but math is not racist. If the math doesn't matter, then it doesn't work. I think most people will fall for it and end up in debt worse than if they just worked on a budget. It may work for some but really at what cost.

If I make bi-weekly payments on the mortgage that is just a regular payment - I wouldn't be designating it to go to principal only, correct?

It recently became overwhelming that my wife and I sold our house in Florida to move to Texas. I invested some of the money from the sale in the stock market. The portfolio is up 300k this year. I guess she knows the investment is making profit, but we've never really spoken openly about it. It's one of the best choices I made.

Cars. Cars keep you poor

BLUF: Pay more each month towards the principal and make extra payments annually. Also paying 1/2, twice a month vs 1 full payment/month.

9 years is BETA numbers I paid off my mortgage in 23 years.

Just to play devils advocate, this isn’t what the “gurus” say to do. They have you pay the mortgage down in chunks. So the most interest you would ever be paying would be the maximum interest on each “chunk”. They like to say that paying down these chunks advances you down the amortization schedule. Well, so does just making an extra principal payment. And you don’t have to pay interest on that. I think the biggest “trick” they have is that they say that mortgages are amortized and HELOCs are simple interest. They also imply that the first half of the loan is mostly interest so that the bank gets paid first, ignoring that you start with zero equity and build it over time. The only real benefit I can see is that you have a line of credit with which to pay for emergencies and whatnot. But you could just have a HELOC without doing VB and only use it if your additional principal payments get a little too overzealous. The biggest drawback to ALL of these methods is that paying down a mortgage that’s almost certainly underperforming the stock market is safe but not growing your money long term. Every dollar plunked into your 2.5% mortgage is a dollar that isn’t growing at easily 5% plus safely with mutual funds.

People get into debt for emotional/behavioural reasons, not mathematical reasons. Velocity banks works because it appeals to behaviors. Same as Dave Ramsey’s debt snowball works even though it is not the mathematically best way to get out of debt.

Liked and subscribed. Thank you for the time you have put into this great video!

With an offset account, does it make any difference if we do repayment monthly, weekly or fortnightly?

The amortization schedule shows exactly how much interest is in every single monthly payment you have to make for the entire life of your mortgage loan whether it is a 15 or 30 years. The banks do not hide the interest numbers. The borrower simply decides not to look at the amortization schedule and see down to the cent how much interest is in their first home mortgage payment down to their very last mortgage payment.

Hi Will Need CFO for start-up!

I think how velocity banking works is amazing. I think it reaps larger benefits when you are able to pay down larger balances more quickly by increasing your cash flow. Paying off a 30k car in 24 months is way better than 60 or 72. It also frees up cash if needed for those living pay check to pay check.

PennyMac was just holding my biweekly payment and doesn't apply to my mortgage

Ok, it is interesting. What about combining extra payments but bi-weekly instead of monthly? Combining both methods.

Mortgage rates are currently at an all time high since 2000(24 years) and based on statistics on inflation, we might see that number skyrocket further, a 30-year fixed rate was only 5% this time last year, so do I just keep waiting for a housing crash before buying or redirect my focus to the equity market

Use common sense. If it's too complicated for you to understand, most likely it meant for you NOT to understand. So stay away.

Very instructive, insightful, and professional! Thank you. I have been thinking about a dilemma I wasn’t able to solve so far: do monthly prepayments reduce the interest amount you ll be paying over a term of a mortgage ( say 5 years? Theoretically, the lower the owed balance, the lower the interest component in monthly payments thus the higher the principal component becomes (not considering the additional amount due to prepayments). However, lenders say to me that the amortization (breakdown of monthly payments between principal vs. Interest ) is fixed at the time of writing off and doesn’t change despite prepayments have been made. i.e.the lender is getting the whole amount of interest at the end of the 5 year term regardless of whether prepayments were done or not. I’d appreciate any enlightenment with this respect ! Thanks Said

My internet rate is 2.25% for 15 yrs ARM.. still have 13 yrs with rate of 2.25% . Do you still suggest to pay extra. Payment ?

You did this completely wrong. You need to watch some of Vanntastic Finance videos. You Use the PLOC to pay a large chunk off which moves you up the amortization schedule. As you pay back the PLOC your also still paying the loan but since your higher up the amortization schedule less is going to interest and more towards Principal.

Velocity Banking is not a Scam and can be very helpful way to pay down debt faster. Even though he is a CFA this guys analysis is flawed. My advice to people who are looking to get into Velocity Banking is to have your budget locked down. If you are not good at budgeting and being disciplined with your spending don't do it. But if your disciplined this could be a great way to pay down debt.

I beat you. I had a mortgage for only 5 years. I win. 👍👍

This is unrealistic advice! If I had money to pay to the principal, don’t you think I would have taken a smaller loan to begin with??? Stop fooling people!

You do realize you can speak faster as we can comprehend information much faster than you are delivering, right?

Can’t believe this info is free, thanks a ton for this William ❤ it helps a lot

This guy wants his friends to keep collecting there interest velocity banking totally works. It’s hard to teach an old dog new tricks!

You are doing the process all wrong sir. The checking account and the line of credit are linked at your financial institution so there are no transfer fees and no over draft fees. To use velocity banking correctly your checking account should always be on zero.

Sorry but it has been working for us like a charm

who else trying to figure out how to save $10,000 in 3 month when you only bring in $2,500 a month

I'm 54 and my wife and I are VERY worried about our future, gas and food prices rising daily. We have had our savings dwindle with the cost of living into the stratosphere, and we are finding it impossible to replace them. We can get by, but can't seem to get ahead. My condolences to anyone retiring in this crisis, 30 years nonstop just for a crooked system to take all you worked for.

You sound like a guy who says Keto doesn't work, you need to count calories. Everything works if you work it correctly. If you cannot control yourself, nothing at all will work. Also, I'm a software engineer and a data engineer. I've worked in banking and finance for decades. VB works and the power is paying down your mortgage at the tail end of the mortgage. Shortening the term of the mortgage AND saving yourself tens of thousands in interest payments. You don't see the results in the short term, you do see them in the long term. I ran the numbers, it works.

Also - a home is an expense - not an investment. The ONLY way to get any value out of your home is to get as much equity as fast as possible. And because it’s usually a fixed expense, you know exactly what the variables are you need to deal with

Most CZcamsrs forget about the amortization table! Drives me insane. You can’t honestly talk about paying off your loan earlier and the benefits without factoring in the interest heavy payments at the beginning of the mortgage. You aren’t building equity until you get deeper into the mortgage. To me this is the #1 reason to pay off a mortgage early vs investment etc argument. The actual interest paid in the beginning of the mortgage is MUCH higher than average investment returns. While you’re not chopping off the first months of the amortization schedule you are cutting it off the back end

Who's refinancing 2.5%?