You’re Not Poor…You’re Getting ROBBED!
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- čas přidán 21. 12. 2023
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ANY video that looks like it's made in the 90s...when it's really made like a month ago ...is ALWAYS a phenomenal watch. The content is in the INFO and not the theatrics!
😂even the hair style clothes
😂😂👍🏾👍🏾
😂😂😂
She came to win, even though she didn't come to play games.
Democrat would claim it's a conspiracy
She reminds me of a teacher that really cared and made sure i was on track.
Same we need more people like her teaching period.
Mortgage literally means payment till death , wished I did this over 2 decades ago kissed over 50,000 geez to interest sucker payments....✌️🙏☝️🤔😎
I read this as made sure I was on crack 😭
@@rachel3682Crack might be a better investment for happiness than a mortgage 🤣
It seems she does
If anyone would study their mortgage bill and amortization schedule you could see this for yourself. Once I did I talked to my husband and told him we are going to end up paying $350,000 for our $100,000 house if we don’t pay this off. Took us about 2.5 years, but we have been mortgage free for 10 months.
Congratulations❤❤❤❤
Congrats ❤
👏 Winners mentality. People like to indulge in spending, it's a form of masochism.
@@billyin4c514 are you sure that's the right word?
@@datahigh absolutely, doing things to hurt yourself is masochism.
More and more people might face a tough time in retirement. Low-paying jobs, inflation, and high rents make it hard to save. Now, middle-class Americans find it tough to own a home too, leaving them without a place to retire.
The increasing prices have impacted my plan to retire at 62, work part-time, and save for the future. I'm concerned about whether those who navigated the 2008 financial crisis had an easier time than I am currently experiencing. The combination of stock market volatility and a decrease in income is causing anxiety about whether I'll have sufficient funds for retirement.
This is precisely why I like having a portfolio coach guide my day-to-day market decisions: with their extensive knowledge of going long and short at the same time, using risk for its asymmetrical upside and laying it off as a hedge against the inevitable downward turns, their skillset makes it nearly impossible for them to underperform. I've been utilizing a portfolio coach for more than two years, and I've made over $800,000.
How can i reach this adviser?
‘Amber Dawn Brummit’ is the licensed advisor I use. Just research the name. You’d find necessary details to work with a correspondence to set up an appointment.
I just googled her and I'm really impressed with her credentials; I reached out to her since I need all the assistance I can get. I just scheduled a caII.
As a former bank employee, I can tell you; Banksters are legalized scammers, same applies for Insurance in NA. imo The best banking type is Not banking at all. A good friend of mine lived in his van for almost 2-years and bought a house for cash. When he went to his bank to withdraw the money, they started begging him to apply for a mortgage.
If you can afford the payment after having the discipline to save, you're going to be better off in the long run to get a mortgage and invest the extra. If your mortgage rate is 4% and the market will return 7% on average after inflation, then you get more value invested that extra for 3% return.
No one actually owns a home in America that's another scam. He still has to pay property taxes and HOA fees and if he defaults on any he will have that house taken away. Home ownership is a myth. Can you make money on equity during a boom? Yes. But actually think you own your home in this country is pure bafoonery.
@@RexJacobus-bb1vw You are so right! Mess up on your taxes and watch how fast good ol' Uncle Sam puts your house up for auction no matter your age or condition.
@@arvieearp7498the only good thing in this scenario now, is the Supreme Court ruled this year, that the county or city that auctions your property, can only keep the taxes owed and MUST give you ALL of the remaining proceeds to the person who owned the property.
@@Mattlott222That is of course until the housing bubble pops.
we are not being taxed we are being plundered .
We stop them.
We're being robbed of practically half out wages from over taxations ,rich enjoying tax shelters by paying themselves minimum wage , hiding profits in business investments Trumps words of a rigged system for elites are pure facts ... ✌️🙏☝️😎💪
Just become a billionaire or a corporation, then you won't have to pay any taxes. Cheat code unlocked.
Why is 14% interest on 10k 117$?
Yep, it's the natural consequence of deifying the Banksters and doing what they say...
great video vann. but can we talk about how nowadays 150k only gets you two cardboard boxes ducttaped together next to a kicked over porta-potty
Not at all, deals still exist in many areas of the country, if you’re willing to think outside of the programming…
@@TrickleCreekFarmyou mean living in the ghetto or 1 hour away from work
@@ragedsycokiller Lol, that’s still a limited mindset. You have to be willing to sacrifice your wants for a better outcome that will inevitably require hard work & diligence & again - going without.
In California
@@TrickleCreekFarmhaha I found a 3 bed home one town over for $210k that needed a new roof, new flooring, every room remodeled, all new appliances, septic system replaced (tank was dug up), and then some... You can't find good deals in many areas
That's INSANE! OMG! This should be taught in HIGH SCHOOL. Unfortunately, finance is never taught by anyone aside from parents, and unfortunately, parents aren't informed enough themselves to teach it to their children. I bought my first house with cash, sold that and bought my current house with cash. I'm not a rich man, but I'm thrilled to have saved a lot of money by not paying interest on my home for the past 11 years.
if you had lived in a van during that 11 years, no housing cost, get around on a bicycle, eat free at the SA mission, etc, no utility bills, no commuting costs, you'd be retired now on your investments. at least in the third world, some countries of which are very nice indeed (if you've got about 40k per year to spend)
Just put the extra income towards the mortgage payments and you get more savings than this method.
This woman just saved anyone who watched this video A LOT of money. God bless her.
This may be a stupid thing but im young and new to building credit. Recently my credit score just dropped from 750 to 619 but i am able to use *Pecuniary backdoors* websites to get to an 800 I was stuck at 750 for a while and I’ve been trying to get to 800. I know in this video you think these methods work for ppl with below 400 but i wanted to make sure someone with over 200 could use these websites.
And time, I mean talk about a 5 year plan, lol. She's something else❤. I hope she knows that there's currently about 3.3 acres per person(newborns included) in these United States, and speaking of, cheap (especially agriculturally zoned) land is one of the only investments I consider a necessity for all young children.
@@williampatrickfurey Wow I've never heard that statistic before. Great time to capitalize.
@@KoolAssKouple yeah I looked into how much of the United States is unused and then did the math. Another helpful thing is knowing that what's called "uninhabitable" right now is not actually uninhabitable, nor will it be the exact same in the future. Especially after taking a business trip, which you can "write off", to said land and planting an array of fruitful commodities for their futures. (A plain and easy example is cherry as it's not just fruit but also wood if need be plus, with poisonous leaves, animals don't seem to eat them.) It's not what I have planned exactly, but let me know if you want video proof; I recall seeing something from a "fruit explorer" which I can probably source to show you his friend's thousands of trees in the desert with literally no maintenance according to his own words.
135,000 loan at an extra 1,100 a month still takes X-months = 135,000/1,100 free cash per month. this is X=122.72 .months. So 12 months to a year.
So that is over 10 years of scrounging to get the loan paid off. Yes interest savings can do it in 7 years. But it is not realistic. People have to enjoy life. Or they buy a bigger home.
It's Called the American Dream Because You Have To Be Asleep to Believe It" - George Carlin.
Imagine if George had taken ten minutes of his routine to explain THIS to his audiences?
Revolution.
It’s a giant club and you ain’t in it
@@adambarnhart2188
When kids wouldn't let me and my friends in their fort we built our own.
That was more fun.
But compared to what? Latin America, the Caribbean, or Africa? I'd rather be poor in America than in Cuba or Guatemala.
@@lupea8079 That's a good point 👍🏻. America's are not happy about all the inflation and devaluing of our currency, its theft and corruption at the highest levels.
Purchased a home in 2005
30 year mortgage
Paid it off in 2017
Ate lots of ramen
Clothes were out of style
Took vacations to the library
But now?
Extra cash...each month
No rent or mortgage
I eat better now and take vacations
Personal discipline and patience is banker kryptonite
Stay safe friends 🎉
Additional note, if you took that additional $1,100 a month and made an additional payment to your mortgage it will all go towards principal and not interest. You could pay this loan off in less than 8 years and a total interest paid would only be $39,631.82, which is only $2,828 more than her method and you don't have to do all the work of getting another loan.
Also, her math is wrong at the very end of her calendar, because she didn't account for the expenses that still needed to be paid. So really, it would take more like 10 months to pay off the line of credit. Given that fact, I think the costs are the same, perhaps better on the mortgage.
Agree. This works especially well if you start doing this early on in the mortgage.
The 1100 was not extra. It was food gas etc
@@elonas9487I'm so glad I'm not the only one who spotted it and is calling her out!!
@@willsteen3302 No, she called it "cash flow" and it is the extra amount going to pay off the mortgage faster.
As a former banker, I used to make a commission off selling credit cards and loans. That should tell you all you need to know
so are you saying she's also not entirely correct here?
Would you say that her loan reduction methods work though by reducing interest? Her math looks sound.
@@z1lla4 no I would say this is sound advice if you plan it out and actually pay everything off
@@barryfondant6032 it looks sound to me as well. When I sold home loans, interest rates were much lower. But now that they're at comical levels of 7-8%, you are literally paying more in interest than you are for the home. Not to mention a home purchased 20 years ago for 125k is now 350k+, so many new homeowners are looking at the prospect of paying a half million dollars or more in interest to purchase a home. That's simply not feasible in my opinion, unfortunately we are programmed to just do that and don't ask questions.
I feel like that line of credit loan of $10,000 won't be paid off after 6 months, there's some part at the low right side she's left out. It would actually take more months.
There's a reason for which "they" made sure this country didn't traditionally learn how money really works in high school. Thumbs up if you know we'll be better off as a country by having real conversations and focusing on the truth about EVERYTHING.
I like that "REAL conversations" because most conversations are literally just fake, where people lie back and forth (at their own peril, too) about the issues and then pretend they came to an intelligent solution.
That is the truth unfortunately. The Prussian model America decided to use to inculcate its citizens has done it's job of shutting down people's free will and critical thinking. A lot more people are finally waking up to this all we can do is spread the word and use this knowledge against the powers that be. 😉
They teach this in school. Y’all just don’t pay attention or expect it to be spoon fed in a lesson plan.
@@kowboy702 while I would agree one needs to get off their ads and not expect to be spoon fed the info. It takes a desire to understand and use the many resources available. Public libraries abound that contain this type of knowledge but other than basic finance, like how to manage a checking account etc, in high school during the 70's, unless you chose business classes as electives, then no, it wasn't taught where I went to school. Other school boards around the country may have arranged classes differently. Regardless, the education model used in this country is a mess. I have quite a few teacher friends and family and I've heard a lot of stories from their classroom experience. I think home schooling would be preferable at this point. America has been on the slope of decay for a while now. Its truly become what Orwell envisioned. The technology has been here for a while and gets more and more intrusive every day. We have power each time we choose to make a purchase using the fiat debt system we've all been duped into believing in. It will eventually crumble. They always do.
Governments around the globe are pushing CBDC's as the answer. We should reject this outright if we're to keep what little financial control we have using cash that's inflated and becoming more worthless each day.
So I would say thanks to Christy for bringing this information to as many as possible whether it's new to you or not.
Fractional reserve banking will go down in history as the largest ponzi scheme ever conducted.
Paying an extra $1100 (free cashflow) into the mortgage each month would have nearly the same effect. It would save $172,214 and reduce the time by 7years and 1mth or so. This could be useful for those that don't have access to a LOC.
This is correct. Using a line of credit at higher interest than the mortgage actually costs more than just taking that extra $1100 and applying it directly to the mortgage. There's no need for the line of credit.
@@dabeev3006 is this true even for the first payments on a mortgage that have the most interest on them? It is never worth doing?
Is it though? My understanding from the video is that the 10k chunk all at once would alter the amortization faster. Rather than lowering it slowly over the course of 9 months.
The $1100 is for their food, gas, etc. How are they supposed to live without these essentials?
@@ROlson-dx2jc no, that was part of their 3k of living expenses.
Stay away from Banks, Lawyers and Police.
You left out. Dr's,hospitals and big pharma.
Don’t forget females
Fact
@@eye-of-omega LOL
Sugar too!!!
I bought raw land (4 acres)...paid it off as fast as I possibly could... and built my home with my own two hands.. paid cash as I could afford it...At 45 years old II am living completely debt free .... All I did was work hard and live within my means...It is absolutely possible for most people to do the same if they are just willing to put in the effort... GREED and ignorance is destroying our society.
I’ll need your help here because that’s exactly what I’m on right now. Bought a land and now I’m thinking on how to build on it.
House prices are crazy here, I've been thinking it's probably cheaper to buy land and just try building my own home....
@@yeoldegrayCat Make sure to research the costs in your area. Getting power to a parcel can be really expensive. Water and Sewer hookups are not cheap. If you're going with a well, make sure to find out how deep you need to go for water in the area and what the quality is (do you need extra filtration) If you're going with septic, make sure the soil can perk, or an engineered septic can get pricey. Know how strict the local jurisdiction is with road building, environmental regulations, etc. I don't want to discourage you, but it will require more work than looking at properties with a realtor.
@@Zt3v3 My property already had well share and septic installed... my power is completely off grid solar with battery bank and generator back up..(No Power company involved)...I will say that I got extremely lucky with finding my land as well as the person who I purchased it from.. (Owner carried the contract)... The building codes here were pretty lax but have gotten a bit stricter in the last decade or so. Timing is everything in my case.
Dude your awesome
I'm 40 yo. Didn't finish high school. I've needed someone to explain this to me for decades. Thank you for the spark of hope.
stranger, I hope you get everything you financially deserved after living on this planet for forty years. 🙏
They don’t teach you this in high school either 😅
Appreciate the concept but I'd rather just pay the eleven hundred dollars extra each month and not pay any interest at all to the bank 46 months at a time. In return, I would pay off my house 284 months.Have a great day , super simple
even if you did finish high school, sxit would be the same. Schools teach you nothing.
Bro 😭 felt that man
You can't buy home without a mortgage or cash.
Also homes cost half a million, not 150k.
Depends where you're buying, and what type of loan. Most of the time if you put less than 20% down you must have mortgage insurance (another expense). But her math is wrong anyway, month 6 doesn't have a way to pay bills, causing her whole timeline to be flubbed
Bro, a one bedroom apartment where I live costs 500k.
@@mariahs11231100 is left over . It's called spare cash
@@davidkymdell452 New York ?
Get out of there 😔
Im 26 and this gives me hope that I can one day own my own home. Never heard of LOC before, thank you so much!
Her math is wrong. Month 6 of LOC she pays it off, but doesn't explain how you are paying bills for that month. Her entire timeline is thrown off because of that. If you correct her error you will see that you're better off putting the $1100 toward the mortgage every month instead. And yes doing that will drastically reduce your mortgage years.
It’s the same exact thing with student debt. People pay back what they borrow and still owe thousands of dollars years after school because the vast majority of their money had gone toward interest.
This is predatory.
Yea it’s called Usury which is forbidden in the Bible
@@alpaphoenix3252 Republicans are the new pharisees
🙄It's not predatory. It's business.
@@agisler87🤡
@@agisler87 There is such a thing as predatory business practices genius
"If the American people ever allow private banks to control the issue of their currency, first by inflation, then by deflation, the banks and corporations that will grow up around them will deprive the people of all property until their children wake up homeless." - Thomas Jefferson
Happening as we speak! Thanks for sharing this quote.
Damn. It's as if a certain someone from last century fought the banking system and lost. He warned the world and they didn't listen.
@@RoxyCherryRozy Exactly 👍🏻
To fix this I propose a 100% reserve system for on-demand deposits, the abolition of the FED, abolition of currency privileges via exchange rate controls & legal tender's contractual exemptions to competing currencies (gresham's law), the abolition of currency discriminatory taxation, a complete deregulation of the financial sector, & a strict enforcement of private financial contractual arrangements. This would eliminate all fiduciary media & inflationary credit expansion.
@@austinbyrd4164 Totally agree 👍🏻.
No wonder any kind of questing about the curriculum was frowned upon with detention in the 90s. So dont question the narrative. Keeping us students stupid till its too late.
Thank you for this
The mazing thing about that Dollar bill you work for. It gets taxed constantly. It is impossible to mature a profit. Taxed before you get it, taxed after you get it. And taxed while you hold it. Even if you die, it still is taxed.
It also constantly loses value thanks to the "Fed" which, since it's inception in 1913, has caused the dollar to lose 93% of its purchasing power.
Could you say the games rigged?
Taxation too with no representation! Sound familiar?
We used this same concept years ago after I took a mortgage brokers course and realized how mortgages were calculated. Paid off our mortgage in less than 7 years. I tried to explain it to people but no one believed me. Like you said, people need the ears to hear, bless you
Did you use a LoC like she mentioned in the video?
@ahavyahyisrael9938 yes, we used a 10K one
Can you explain the LOC better?
For example is it getting a $10k personal loan from the bank?
Does $10k get put into my account and then I put my income into the loan? Wouldn’t that mean I would be paying off the personal loan?
I am open ears, thank you
@@brightboakye3996 The way I see it is that you’d be using your loan as your personal banking. So yes, you’d get the 10k and put it towards the mortgage, then your income and expenses would need to be calculated against that original 10k amount. Your payments would essentially be whatever your cash flow amount is (In this example, it’s $1,100). This would require you to be dedicated to your goal of paying off that loan and not buying extra things for yourself while paying off the loan.
@@brightboakye3996the line of credit is an agreement by the bank to loan you up to a certain amount of money.
It's been traditionally used by businesses (properly) to deal with the variation of income and the expenses they need to pay. A business doesn't necessarily have all the cash up front to pay all their expenses, but they do have ongoing income and value tied up in business assets.
So, the bank agrees to the line of credit, and the business is going to use it to take care of its day to day operations and smooth out the "hills and valleys" in its income.
So they use it just as she's described: they dip into the line of credit, using it to pay things as they come up, and using their income to pay down the line of credit (so as to not carry a balance like most people do on a credit card).
So it is a loan, but it's not the bank giving you all the money up front, but they've agreed that when you need it, they're prepared to front you the cash. And instead of a loan, you decide how you're going to employ it.
The idea of "depositing" your income into the line of credit is that, instead of just sitting in a bank account, that money is actively reducing the credit you're using (credit that is costing you money) while also increasing your buying power (since you're reducing your utilization of it with every deposit you make, you have more freed up credit).
My husband and I did this method and paid off our 75,000 house in just under 2 years with only 1 income. We then moved up in house and paid off $250,000 in 4 years. We've been 100% debt free for 6 years and he is now early retired with a net worth of $1million at age 53. This method actually works - but ONLY if you focus and do not use the line of credit to live above your income. We used the thought that "Every penny we don't spend pays off the house!"
Any ideas when your first home doesn't cost $75,000 but costs $750,0000 ????
My wife and I pay 50% extra each month to the principal so we can pay off ours early, but this seems like a much better deal. We essentially do this method she's talking about with our credit cards (minus using them to pay the mortgage) for our expenses. Funnel all expenses through them and pay them off each month so we pay zero interest and get whatever cashback deals the card has. The key is definitely to not spend above your means as you'd end up in debt very quickly.
If you’ve used this method, surely you noticed the glaring mistakes in her math. Why aren’t you pointing it out?
Brilliant!!! I am 56 yo and wish I'd had this knowledge when I bought my first house at 20 yo! This old dog just learned a new trick! Thank you for sharing!!
@@TheCarty1986 Takes a bit longer, but the concept is still the same. Although, you can add to it that a HELOC will loan uou much larger chunks as you pay down and gain equity. As our mortgage balance decreased, we upped our Home Equity Line of Credit. Once we got the mortgage under 50% paid off, we were able to "swallow" the mortgage with the equity line.
Take a look at Money Merge Account. It is a software that does all the calculating for you and gives you tips to maximize your interest-cutting.
This lady is generally right, this can be done! however, it would be easier, quicker, simpler and cheaper to just make monthly overpayments of $1,100 directly to your mortgage. Paid off faster, even less interest and a lot less messing around
Its hilarious how wrong this is until you realize people are being mislead. Then it's tragic
Paying off 10,000 plus 600 in interest in 6 months using only 6600 of cashflow. Bankers hate this one simple trick!
But how does this change where you’re at on the schedule?because you’re not refinancing.
@@mandycortese9293 What I am saying is you can not payoff the 10k 2nd loan in only six months like the video claims. you have 1100 cash flow a month, over six months that is 6600 dollars. No matter all the ins and out of expenses, no of that matters. You can not use 6600 to pay of 10+k.
Now, if you inherited or otherwise had 10k to payoff a portion of the mortgage balance, they yes, it is as if you get to "jump in time" to a future location on the amortization schedule. This also works if you just make extra payments. Your payment is locked, and the amount of interest is determined on the remaining balance. The lower the balance the less interest, the more the payment goes to principal, and it snowballs.
If you make one extra 30 year mortgage payment a year, every year, you pay off a 30 year in aprox 21-22 years.
Good luck!
Another way people get scammed are by vehicles. I simply moved right next to where i work, got rid of my car and now i save 1000 a month and thats not including repairs. Its insane, i also lose weight
Not everybody has that type of privilege/luxury, we're I'm stuck there is no work that will pay enough to cover my bills, i have to travel to work and no I do not make enough to move closer to my job. And no, I'm not going to be able to find a higher paying job in my area.
@@albinoyak2755 dude I lived in concepcion texas which is a town of 35 people corpus christi is the nearest city, which is 1 and half hr away I raised my siblings while saving for 5 years, to get out, if i can do it you can too
@@albinoyak2755 I don't think you know what the word privelege/ luxury means. Get a second job, I lived in my car for almost two years just to relocate. There are people who are in worse positions than you that find a way.
What kind of vehicle are you driving that costs 1000 a month?
@@irrecconI suspect it's total cost of car ownership. There's the car payment, auto insurance, initial sales tax, inspections, tag/title cost, monthly fuel costs, maintenance, and tolls for some folks. When you add it all up, you realize that having a car costs you a lot.
It's not at all practical for me not to own one though. But, some people can sacrifice for a lifestyle that allows them to be without one. I wouldn't assume that it's "privilege" like a previous commenter said. For many that do it, it is only possible through determination and years of hard work and personal sacrifice.
This should be a required class for every student to graduate!
They wouldn't want that, everyone up top benefits from our lack of knowledge 😠
Classes in compound interest by itself should have been a requirement to graduate from high school.
That's what a lot of the student loans crap is about...a lot of people never understood what compound interest was until after they got that far in college. By then, it was too late - thousands in debt.
@@gcanaday1 Definitely. A course in finances would be far more useful than most of the classes they teach in high school.
All wars are bankers wars!
True they need to teach personal/business management skills in high school as a requirement not as an elective. If it still is one.
Also kinda feel allowing this kind of predatory business behavior is wrong.
This would not work. The reason why is after 7 months and the LOC is paid off you only have $231 for your $4100 of monthly expenses. This would force you to either use the LOC again for the remaining expenses or pull them out of an account that is not mentioned here.
Glad to see someone else was paying attention to this. Taking a higher interest loan to partially pay off a lower interest loan is not a net gain, it's a net loss. Putting your extra cashflow into amortizations on the mortgage would be more sound.
The idea behind the video is good (amortizing your loans to avoid interest payments), but the methodology is poor and misleading, and the math is wrong as you noted.
This is what actually caring about your finances looks like. Look ahead or be left behind.
I can’t even express how moving it is to hear someone giving 15 minutes of solid helpful advice instead of peddling some six hour webinar of the same information, nothing more, at an exorbitant price. You are a treasure to our country and dear to its future. I shared this video with my loved ones and asked them to subscribe. Thank you ma’am!
This is good advice. You actually end up paying even more using this method.
@@Jerrydiehard wait what you do not agree ..how are you paying more...
This is terrible advice. You’re accruing more interest with this elaborately ridiculous and ill-considered plan. You would lose more money by doing what she’s suggesting here because the interest rate of the HELOC/LOC would be higher than simply leaving your total loan amount in the original mortgage at a lower rate.
Just pay extra principal and you’ll save more.
@@kamwow3207 HELOC was a last suggestion. She's explained how to pay down your principal
Give it time, she will be peddling soon. This is nonsense.
This is the single most valuable CZcams video I’ve ever watched.
💯
Yeeeees 😮❤
🎉
More valuable than your high school diploma
Has ANYONE tried it yet? Let us know PLEASE!. gonna show the wife rn.
Just an observation… The extra $1100 is being used to offset the $10k line of credit. Meaning after 6 months your $6600 helped pay the $10k back. With a $967 a month mortgage payment, you can literally apply the $1100 to that for a total of $2067 per month for 6.5 years with very similar results and no line of credit. I would love to see the same video using my example.
Yes! I was practically yelling at the video the whole time saying this. I kept waiting for her to explain how it's different at the end, but she never did. I don't think she fully understands the math, actually.
With your scenario it would take approximately 7 years and 1 month.
I don't know the math seems funny to me. How do you get from $6600 paying off a $10k loan. Where does the $3400 come from? If you have disposable cash the logical thing to do would be to just apply it to the principal directly instead of borrowing more but idk
@@schrodingersmechanic7622 That’s my whole point too… Just take the extra dough and apply it to principal. No need for the line of credit if you have an extra $1100/month to apply.
She flubs the math at month 6, messing up her whole timeline. Plus 14% interest is always more than 7.75% interest. Correcting her error puts her method at 10yrs. Putting the $1100 to the mortgage puts it at just over 7yrs
We need more people like you. I'm still trying to come to terms with the government printing money yet we are programmed to go out and work for it. Wishing love and true abundance to everyone
Protect this woman at all costs!!!
Hahahahaha😂😂😂
That's gonna be difficult, considering her nose shows up 6 days ahead of time.
From what?
At what cost specifically?
LOL this woman is misleading people.
"The more ignorant you are, the more exploitable you become." TY Ms. Vann for creating this CZcams channel.
This definitely shows a lot of ignorant people can’t do math. Just pay $1100 a month extra and skip the LOC.
This calculation is incorrect.
Rather than a 10000 LOC, the amount borrowed is actually 4800. This is obvious because 5200 of income is applied first against the LOC. It is also obvious at the end, when the remaining principal has been paid off but the 4100 of expenses have yet to be funded. That would have to be borrowed on the LOC because the income was already applied to the principal. So the LOC would not yet be paid off after 7 months. The error is obvious because 1100 of cash flow cannot pay off an LOC of 10000 in 7 months even at zero interest.
The weighted average interest rate of the low interest rate mortgage and the high interest rate LOC for the same $135000 of total debt is higher than for the low interest rate mortgage alone. So the total interest paid would be higher for the mortgage/LOC case than the mortgage alone case.
The best strategy to reduce the total interest cost would be to apply the 1100 cash flow to the mortgage. This strategy would also pay off the mortgage in the quickest time.
It would take 10 months, which would still be cheaper than paying the mortgage by itself.
No the quickest and cheapest way to pay off the mortgage is directly, without the LOC, because the interest rate on the LOC is higher than on the mortgage. You cannot be better off paying a higher interest rate on an LOC than for the same debt on the mortgage at a lower interest rate. The best way to accelerate repayment of the mortgage and to minimize interest costs is to apply the cash flow and all payments directly to the mortgage without using a LOC. This is logically obvious, and you can prove it to yourself by using a spreadsheet to compare the mortgage case to the mortgage/LOC case.
What happened to expenses for month 6?
You cannot apply 10k again in 7th month because you have 4.1k of expenses unaccounted for.
Additionally, interest on 10k@14 is more than 10k@7.75. Thats just maths.
Also this is just extra steps to taking your extra 1100 monthly and paying to the mtg. If you do that from day 1 you pay it off in 7 years 2 months and only pay 175.9k total on the loan. (Because you paid 94.6k on top of the minumum for that that time duration)
I haven't accounted for any of the interest paid to LOC, but 469 twice a year for 7 years is 6500 extra in interest. So the proper comparison is 40.9k interest VERSUS ~43.3k (36.8k+ 6.5k)
With no money paid toward interest on a LOC and no extra steps or hassle.
Yeah I caught that too. I'm shocked yet again how stupid people are to not be able to do simple math.
Thanks goodness someone else noticed this, but I am depressed I had to scroll so far down in the comments to find it.
Plus if you have an unexpected expense like an insurance deductible, emergent repair or major appliance, it's easy to skip an additional principal payment and take care of it vice having to use credit to cover the expense or risk missing that LOC payment.
You explained this so simply and so well! I wish I saw more comments calling this huge mistake out.
I love mature people on CZcams making genuinely smart and helpful videos on CZcams without clutter
If mature you mean tricking people into paying more in interest when they could just take the extra 1,100 every month and put it against the mortgage and actually pay it off faster, then sure.
Under what she's telling people to do, people are paying $9,000 more in interest than if they were to just take the $1,100 extra every month and make an additional principal payment. No line of credit needed.
@@dakattack8900what is this called?
@@dakattack8900 geez bro chill. You ever wanted a snowcone or had a brake line go out? Better to have and not need than to need and not have.
Also, I may have initially misinterpreted what you typed there. I c u now :) carry on then!
Good 💯 information
@@dakattack8900nothing worse than being house rich and money poor … but sure, put ALL the disposable income into the principal. Or ya know, leverage it like she’s suggesting in the video
I learned this in my early 20s when I was broke. I retired at age 45 debt free and purchased commercial real estate. My net worth increases $100K every year after a very comfortable cost of living buget. Not bad for a 9th grade drop.
Can ù teach me 2do the same
@@RegandNiq Step 1 is to start a business, any business. Mow lawns, sell shirts. Step 2 grow the business slow and steady with employees making you money. Grow too fast is problems, too slow is problems. Understand you don't have to be a plumber to own a plumbing business. It helps but not required.
@@greenmoxythen what? You make the money and buy random houses?
@@viperrr6886 Houses? Never! Commercial is best. A business will rent the space to make income so is more likely to pay rent on time every time. House renters late pay, no pay, fix this, problems. Commercial 10yr return vs residential 15yr return.
@@greenmoxyokay nice
God bless this woman.
So basically what you could have said in some 17 minutes is to put all of your extra cash against the principle. I paid my first house off in 2 years and 8 months byt the age of 22 by making quadruple payments each month. I didn't need a LOC to do this.
Mortgage rates are currently at an all time high since 2000(23 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
The stock market is no different, to maintain profit you need to have some in-depth knowledge on the market. I mostly just buy and hold stocks, but my portfolio has been mostly in the red for quite awhile now. Unfortunately to be able to make good gains, you’ll need to be consistent and restructure your portfolio frequently.
In my opinion, it was much easier investing back in the 80s but it’s a lot trickier now, those making consistent profit in these times are professionals reason I’ve been using an advisor for the past 5 years to consistently build my portfolio in preparations for retirement.
My partner’s been considering going the same route, could you share more info please on the advisor that guides you
Google Sonya Lee Mitchell and do your own research. She has portfolio management down to a science
Thank you for this tip. It was easy to find your coach. Did my due diligence on her before scheduling a phone call with her. She seems proficient considering her resume.
I bought my home in 2016 with a 3.75% interest on $425,000 with 20% down and in July I of this year 2024, I will be making my last payment! People use the system don’t let it use you. Let’s get it. ❤
How did you do that
It's great if you make 500 percent over poverty per month lol. This is only possible for the rich
Did you use this method?
Sounds like you were well prepared
Do you mind answering how? Don't just brag lol
She did not take into account the living expenses on that last month of the Line of Credit. It will take more than 7 months to "pay it off". It's only going down by less than $1100 each month, that means about 10 months or so depending on the interest. Also, it would be better (and easier) just to add $1100 to the principle payment each month rather than monkey around with this Line of Credit plan.
lol. Absolutely.
This is just click bait garbage.
Just pay the added “cash flow” to the mortgage to pay it off quicker.
She’s a fool, but she clearly fooled all the people in the comments section.
Better is interesting. It actually depends. It depends on if the interest will be higher on the adjusted loan interest or the loc interest in that 9 month time period. I’m looking into that now on my loan, but I suspect you’re correct.
Can some ones explain to me the math of how 7.75% becomes 871.87?
I understand that the bank scams you to pay the interest first (and then finally pay off the house). I am just trying to do the math, how do she get 871.87 from 7.75%?
@@Matweaver7 better in the sense that there are fewer loans to pay, therefore less of a chance of paying something late and getting hit by big penalties. Depending on the interest rates involved, it may be better even without penalties, but it will never be significantly different to warrant the headaches of juggling all of this mess.
@@AlviAle the higher interest rate that she quotes is the accumulated interest over the life of the loan. While the lower interest rate is the annual rate of interest. I hope this helps.
Someone feel free to correct me, but I don't think she did this correctly.
In month 6, when the LOC is "0" she did not add the $4,100 for expenses for that month. If she had, plus a bit of interest she would have been around $3,927 for month 7, and if she had put $10,000 toward the mortgage, the LOC would be around $13,927, not $10,000. When I calculate it, the LOC is fully paid off around month 11 and can put $10,000 toward the mortgage on month 12.
This method does pay off the mortgage faster than making the minimum monthly payment, but only because the debtor is making and extra $1,100 payment each month. The interest situation is actually WORSE than just making that same payment on the mortgage itself, because the interest rate is higher. You're paying 14% on the $10,000 for the LOC rather than 7.75% on the $10,000 that the mortgage was paid down. If you wanted an apples to apples comparison, you would have to compare the interest paid to the LOC plus the interest paid for the mortgage every month (which is still happening in the living expenses) compared to the interest paid on the mortgage alone while making an extra payment of $1,100 toward principal (essentially a $2,067.16 payment every month).
I remember every year my dad looking at the yearly statement and noting how little actually came off the principal. I decided early in my life i would not become an indentured servant.
That genuinely makes me sad😢😢
Indentured
@@user-sk2fh5cl8y dumbass is spelled with 2 ss's.
I mean this isn't that bad
@@user-sk2fh5cl8y r u happy?
In an age where everyone is trying to sell you something, it’s difficult to come by valuable information. Thank you ❤
Not true. There are other ways to get paid if you are not directly selling something. Making CZcams videos is one.
Her math is wrong. How are you paying bills in month 6? This messes up her whole timeline. Her method REALLY would take 10yrs. Putting the $1100 to the mortgage would have it payed off in 7yrs
@@mariahs1123Finally, someone using their brain 👍
Doesn't make sense, for one there's no way you can pay off 10k in 6 months with $1100 payments (when she subtracts income and adds expenses she's really just subtracting cash flow), even if there was 0% interest 6*1100=$6600. The error is in the last step. She put all the income to paying off the loan but forgot about the 4100 monthly costs and interest payment. What's really happening here is the $1100 cash flow is being used to pay off the high interest loan. Why couldn't you just pay the loan off the loan directly with the $1100?
lol. This is just clickbait garbage but clearly it fooled many of the morons in the comments
Correct! Her method would take about 10 years if she hadn't messed up. Putting the $1100 straight to the mortgage would take about 7yrs.
This woman is skill checking the entire banking industry
I got my real estate license a few years ago, and when I was going through my class they explained the math for an amortized loan.
Once you do the math, you’re paying more for interest than you are for your home.
That was the start, but after a few other revelation I was so appalled that I couldn’t even practice real estate once I had my license.
It felt so disgusting to involve myself (for profit) with something that was so obviously unethical.
You are the change in the world you want to see, good on you for making your choice
No we need people like you as real estate agents. You can teach buyers a better way to borrow.
Same here. I actually went on to have a career and didn’t realize how much of a scam the industry is until I was a few years in. I quit.
So what? That's the risk they take loaning idiots money over 30 years. Do you have any idea the risk of a fixed rate mortgage over 30 years? In Europe most mortgages are variable rate....because rates change. In the US the interest rate risk is on the banks, not the individual and that's costly. The banks take on huge risk taking such a long fixed rate loan and they are going to charge you to buy your house for you.
@@AEVMU >in Europe
Filtered.
This is something that no one in a bank will tell you. I've long said to people around me that mortgages are a scam and you will pay for your house 3 times. Not a single person believes me they are being robbed blind.
AND AFTER YEARS OF PAYMENT, PEOPLE ACTUALLY THINK THEY OWN THEIR HOME!😂 THINK AGAIN, STOP PAYING YEARLY TAXES AND THE HOME GOES ON THE CHOPPING BLOCK 😊.......SO , YOU REALLY ARE FOREVER RENTING YOUR OWN PROPERTY!!!! MEANING, SOMEONE ELSE CAN POSSIBLY GRAB IT , IF YOU S.L.I.P. ON THY PAYMENT HAHAHA 😆 HAHAHA, WELCOME TO CAPITALIZISM.
@@lindar6326 valid, but our monthly expenses would be a fraction of what they are now by following this.
People don't realise that compound interest is a thing, and as little as 2-5% can grow exponentially just after 5 years into esentially doubling or tripling the amount you agreed to pay on initially.
@@shroomer3867So what can we do? I knew over 16 years I haven't even paid off anything because of interest only mortgage 🥺
A lot of people know they are getting ripped off, but they are ignorant of ways to get around it, until now.
I received a small settlement years ago, 97K , I bought our home. Every idiot was telling me to buy a Jag or a Porsche. I bought our home still living in it after over 30 years, and will die in it. Our cars 2 of them are over 10 years old but paid for. Here where we live corporations have been buying every house they can,turning them into rentals the average rent is between 2K & 2.5 K they are turning this country into a nation of renters. Now they want to charge people for every mile we drive, that is a thing! nickle, and diming everyone into servitude financial slavery. I feel sorry for the young folk I truly do.
Where do you live at? Corporations haven’t bought into my city, San Diego, in a way that I have noticed but I know they have bought 40% since COVID.
@@MatthewCashew3 Blackstone LLC has been buying homes all over, there are others like them. The block where I live has twenty houses ten on each side. At one point there were all family owned today only six remain, the other fourteen are rentals. Warren Buffet, Robert Reich, Jamie Dimon are warning of an impending housing crisis. The American dream of home ownership is less, and less attainable today, than any other time in the past.
Every time I watch one of your videos I smile and thank you for being such a blessing to so many people. You are an amazing lady.
It’s crazy how many financial traps there are out there to make us stuck and pay the government/banks every penny we get,I appreciate this woman for being educated and kind enough to share this information
Who are the biggest banking families?
Why are these names always tied to the global elite being corrupt and draining humanity for over 150 years?
People need to stop calling people crazy and do some research, we USA is being ran as a corporation
Her math is wrong. How are you paying bills in month 6? This messes up her whole timeline. Her method REALLY would take 10yrs. Putting the $1100 to the mortgage would have it payed off in 7yrs
I'm blown away. I have to watch this several more times to completely understand this. I sure wish I could sit down with this lady so she could walk me through this.
SAME! lol 🙏🏽
So if you don’t understand what are you blown away by
She just did, didn’t she?
Can you explain how the LOC is paid in 6 months?
Honestly if your interest rate is below 3-4 % what she saying would be wrong
as an European slightly being exposed to American economics I learned to never get into loans and that Americans have very bad spending habits
This is so eye opening!! You are correct, so much we don't know lol this will help me going forward in many ways, thank you!! Sharing with my kiddos!!
I had $3500 stolen from me from Key bank. The bank would not refund it. Do not bank with KEY. If i can stop one person from banking with them id feel better
They must not be fdic insured? 😮😢
@@timekabolden5309 No they are just like any bank. They did their own investigation and made it sound like I was involved somehow and said they wouldn't refund the money.
Don't feel bad bro. I have 3.8 million seized on me because Bitchen was hacked like a couple months ago or so. Now i can't withdraw any money. Can't tell me a time limit IF I'll ever even be able to get those funds back.
@@SuaveHousexxWho bitcoin ?
You can fill out a police report against them. That usually turns it around...
It's incredible what the system is designed to do to unsuspecting people.
Thank you so much for your efforts on sharing this with us 💚
God bless you & thank you for teaching
I've been debt free for over 10 years and people still can't understand how I've done it.
The idea of working for 3 or 4 months a year just to service debt is pure insanity.
I've lost jobs and been unemployed for a year at a time and still no debt, just savings.
Its a great feeling not having interest payments to think about.
Please explain how you can go without income for months at a time and not be evicted. Are you on welfare? Are you married to someone who pays your bills? Are you retired?
@@selohcin Like I said, no debt and maintain savings. Just because I have money doesn't mean I spend money. People think they need all the streaming services, I use none. People think they need to drive a newer car. Mine is older with low mileage and has been paid off for years. Could I have a bigger house? Sure, but I don't need a bigger house. Spend less than half of what you make and save the rest.
I have a good friend who makes 85k a year and is broke all the time. I have made 85k a year for a couple years before the company goes broke and I have 50k saved. My cell phone is 30/month because I pay a month ahead and paid for my phone up front. I don't have cable because why would I?
I don't eat out because I can cook for myself for a third of the cost.
Its not hard if you decide to do it. I value freedom above all else, and not being a wage slave is freedom.
@@selohcinno they don't I don't why should they we don't need help we help are self....😊
@@selohcin Savings. Save money instead of accumulating debt. Stop spending on things you don't need. Then, when you're unemployed, live off the saved money until you find another job. Oh yes, and possibly use the government programs that you qualify for between jobs.
You can also get into a trade union. Work 5 to 8 months out of the year and make near or over 100k, 200k + and get laid off. Then get a paid vacation for the next 6 months or so drawing max unemployment. If you don't want to work your life away and still make a healthy income.
I have a better solution that is more reasonable:
Paying an extra $300 a month on the loan leaves the couple with $800 a month in cash flow.
It saves $119,000 in interest and is paid off in 15 years without juggling a line of credit loan as well as having all their money tied up each month.
For more info:
$400/mo saves $132k and is paid off in 13y 2mo
$500/mo saves $142k and is paid off in 11y 9mo
$600/mo saves $150k and is paid off in 10y 7mo
Choosing to pay extra is more feasible in case an emergency comes up. Then they're not beholden to two loan payments at once. They can just skip a month or two of extra payments and resume when the problem is solved.
I think if you really want to go for max savings, you'd do this $10,000 chunk repeat payout scheme. I think it's really about chipping away at the principle as fast as you can. But you're right in the fact that this is a bit of work to set up. Not that hard though.
@@SeanWork No. For all the reasons I explained.
@BeyondMillennium I thought the same as you. Why tie up your excess cash in another loan instead of a savings account. You could build it up quicker because you are not wasting money on another interest payment. This velocity banking is nothing more then moving debt around while still leaking cash lol.
The issue with the approach in the video is the same with a lot of finicial advice, it lacks flexibility.
You could take the money and put it in the stock market and be better off. Not only is there better options but I'd say this example is unrealistic. As you said what about 'emergency' expenses?
Not to mention most people don't budget properly imo. Does the expenses include car repair, taxes, etc. There are a lot of expenses I find most people don't actually account for. They just treat it like a surprise expense that month even though it's not surprising at all.
@@devinkipp4344 I agree with you for the most part, but I'd say that $300 a month knocking down $119k in interest is a better return that the stock market will give in 15 years.
Our nationwide (Wells Fargo) bank didn’t offer a LOC anymore so we went to a Credit Union and got a checking account and we were approved for a LOC.
You are someone ❤️
Someone who cares about others time & money 🙏❤️
You are love!!!
Mic drop!!!🔥🎤 👋🏾 Doing the lords good work! God protect this woman 🙏🏾✨
I’m completely blown away by this info!
😂😂😂 Amen!
Knowledge is Power!
Many times, it's what you don't know that can make or break your finances.😊🎉
Any help for renters who would rather do so?
Her math is wrong. How are you paying bills in month 6? This messes up her whole timeline. Her method REALLY would take 10yrs. Putting the $1100 to the mortgage would have it payed off in 7yrs
This is ridiculous and sickening. 😢 I plan to own a home in a few years, once I build up my credit. People truly do perish because of knowledge. Thank you for the knowledge!
They perish for a lack of knowledge .
You do not need credit to buy a home.
Credit is why we're suffering. It's the lie we're led to believe is there to help us.
This is bad advice, isn't it? Please correct me if I am wrong. run the numbers. Essentially you are making $5500 in early payments to your total owed money after 5 months. Then you are making a lump sum payment of nearly all your income for month 6. This is not wise. You should have made your early payments to your mortgage of $5500. Yes, open your HELOC so you can have available money in case of a difficult month. Basically, on the 10K that was not in your mortgage for 6 months, you saved about 350 in interest. But you paid $469. Not sound advice here.
Sorry. I am interested to see if you delete my comment!
@@cherylaguilar5421 I don't think you understand. In the scenario, They already made an 'early' payment in the form of $15,000 down payment. The LOC isn't used for anything extra. (That's where credit fails you, and profits them most). The 10k lump every 7 months accelerates the reduction of of the mortgage's capital debt. Paying off the LOC $1100 a month is less effective than using the full monthly paycheck ($6k was it?) as is lowers the average for the LOC's interest charge. It's still a net reduction of $1.1k/mo off the LOC, with the appearance of an average payment of $1428.57/mo towards the mortgage, which is still a net positive for them. HOWEVER, each 10k slide of the amortization table saves a mountain of overall interest, so more of the capital is paid off faster, with less interest being incurred along the way.
Another issue with mortgages, they drive up the cost of housing
By far the best informative video I have ever watched….thank you so much for this gem!
I just figured out that my mom and dad paid $180000.00 for their Veterans loan home that they bought in the exact year of 1971 at a total cost of $18000.00 dollars their monthly payments were $500.00 a month for 30 years, only $50.00 a month went towards the house!!! What a F-ing rip-off 😮
I'm so sorry; that is a travesty!
$500 a month is $6k a year... $6k times 30 years is $180,000... so what are you on about 😅
@@TruthOverFactread it again foo
@@BenJahMoNomad YOU read it again FOO LOL...
@@TruthOverFactSince you are unable to read. Let me explain. Her parents paid 180k for an 18k house.
Im 18 yrs old my father has had a mortgage for over 30 years and it breaks my heart seeing him slaving away at his physical job just to make ends meet I hope and pray to help him financially when I get my degree and even more so hope to make better financial decisions than he or my mother made
If you are 18 years old start your 401k, Roth IRA, and brokerage account. Little amounts are your age really adds up. learn how to do a compound calculator. $100 per month invested in the stock market from now until 67 is easily a million bucks (you will need more to retire but it shows the growth).
Don't get a degree, go make money instead!
@@ifyouloveChristyouwillobeyhim depends on the degree and how much debt. Some degrees are worth getting while others are not. Look at the salary before you go for it. Money doesn’t buy happiness but it sure as heck helps.
@@ehderguyyashootadeerorno2313 Stop with the generalizing - "you need a million bucks (or more??) to retire" - Thats BS and is VERY misleading for many people. Especially an 18yr old. Shame on you.
@@WES_5150 I would rather set them up for success than let them fail. The cost of living doubles every 24 years. A 18 will retire in 48 years ish. So a million for them at 66 will be worth $250k today. Take 4% of that is $10k per year. Who knows what social insecurity will look like then.
Today I believe you can retire on less than a million but after that much inflation it won’t be possible.
Thank you! Blessings!
Love this, thank you!
You get similar results just by putting the extra $1,100 into the mortgage each month. Since the shown method is using all $1,100 extra from the monthly budget and using it to pay the Line of Credit, I did the math on using that same $1,100 and just paying it into the mortgage monthly. You pay the mortgage off in 7 years, 3 month, and save $172,275 in interest charges. No line of credit needed.
Besides, her Line of Credit math is wrong. You can't pay off a $10k loan in 6 months when you only have an extra $1,100 each month. And that's ignoring interest charges. You'll need over 9 months to do it. Meaning just taking your $1,100 each month and putting it directly into the mortgage is just as good, if not a better option
I was thinking this same thing and seems to be more doable without having to get another line of credit
I think what you missed is that extra or left over $1,100 is yours to spend where ever else needed. The balance of the loan is going down each month by your income paying into that acc or loan. Secondly the interest rate is based off the balance each month, not the $10,000 you initially started at in month 1
God you are bad at math.
@@maitiurice The example in the video is taking a $10,000 line of credit and using $1,100 in extra income to pay off that line of credit in 6 months. How is that possible? 6 x $1,100 is on only $6,600. That’s pretty simple math.
As for the the ‘similar results’, you can use an online mortgage calculator to plug in the same numbers from the example, see the total interest and end date, and then do the same thing and add $1,100 in principal-only payment each month (there’s a box for that in the calculator). Compare the end dates and the total interest spent between the scenarios. You’ll get the same results I did.
It’s not me who is bad at math, it’s the video.
@@NikolaConductor yeah, cuz I've got time to teach you math. Go back to school buddy, you need it.
This channel is VannTastic. Thank you especially for the "you're not poor, you're being robbed video". I thank yo Kristi with every fiber in my body... You are Awesome 🎉🎉
M1: 9017, M2: 8023, M3: 7007, M4: 5999, M5: 4969, M6 you pay it off and you have no money for your expenses so you starve to death. You obviously need at least 10 months to pay off 10k with 1,1k because 9*1,1k
The last part of the equation 4969-4969 forgets you have 4100 in expenses with only 5200 in income - 4969 - 4100 = -3869. Approximately every 6 months, you get a 3rd paycheck, which you’ll be 2600. 2600-3869=-1269 that you are still short.
From what I can tell, just adding the 1100 to the principle directly is a faster method to paying off along with the 2600 extra pay check approximately every 6 months.
Thank you for being one of the few with a brain in this comment section.
Exactly my thought. Directly applying $1k per month is nearly equivalent to 10 months of principal without all the hoop jumping. I am currently adding 4 months extra to my principal with zero "lines of credit."
i also noticed this, because she summed 6 months of income and only 5 months of expenses it would still have a balance of around 3900 on the line of credit at the end of the sixth month when you add the sixth months expenses. would be cheaper to directly contribute the 1100 cash flow to the principle rather than paying the interest on the line of credit
Can you help me understand what she’s talking about with the LOC cause taking it out and paying back sounds like it’s adding unnecessary steps
@@fabio6492 It is. Don't get a line of credit. Just take whatever surplus and throw it against your mortgage. Or whatever your highest interest debt is.
I don't even have a home / mortgage, but I felt like I was just lectured by a caring aunt who truly wanted the best for my future. I feel as if my brain just had a firmware update.
You're doing a service to mankind. God bless you. Love from India.
Her math is wrong. How are you paying bills in month 6? This messes up her whole timeline.
Thank you so much for this content !!!
Amazing content thank you for opening our eyes 🙏🏻
I feel like I’m in class…. But this time by my own free will, learning something that will actually benefit me in life ⭐️⭐️⭐️⭐️⭐️
EXCELLENT!!
@@VanntasticFinancesNO!! You are misleading. Shame on you, I reported you! SHAME!! $1100 x6 months = $6600, NOT $10,000!!!
@@mariahs11231100 + 967 mortgage payment. There's a lot of numbers moving around you just have to follow.
I’ve been doing velocity banking for several months now and it’s been amazing! I have freedom now. I don’t worry. I still regret all the money wasted and wish I had know this when I was younger but we all have expenses. I am down $10k and can’t wait till payday! I don’t use spreadsheets (mathematical challenged). Don’t need them. I’m not stressed or spending hours trying to snowball finances on paper. Using a ploc from my credit Union. Now I’m using my rewards card for expenses and now have rewards I use to lower that payment. This is crazy smart. This has been a well kept secret the rich use! I thank God for Christy and for CZcams putting her in my queue months ago. Divine intervention. 👼🏼🙋🏼♀️
Amen to that! Divine intervention!
Oooh wee! You're doing great! Great inspiration for the rest of us, too.
I agree it is divine intervention. I was praying just today to God for guidance about my debt and buying a home and she just popped up and this video has answered my prayer and my questions and now I understand why it popped up so suddenly.
You would almost certainly save the same amount or more by putting that money away in a safety fund and after 2 years refinancing the remainder of the mortgage into a 10year lower interest mortgage and then paying it off early with the mortgage insurance savings and the extra monthly income you are actually paying on the ploc.
If you saved your extra monthly income into either a 401k or a broad market mutual fund, your money should earn a good return on investment. And be a safety net.
Then when you paid all of your monthly extra onto the newer lower interest and lower insurance rate loan you would both cut it's time, AND the safety net money (with her example it would be about 27-30k) would continue growing independently to provide for any unexpected financial issues. And at the same 6-7year total mark you would still be able to pay off the entire mortgage with the safety net money if you chose.
An amortization table isn't that hard to set up.
You can probably find one to download & plug in the payments & it'll update everything else.
Thank you! This is very valuable!!
Thank you for sharing.
From 30 years to 6 years, you can't beat that!!
You only need a spare $1100 per month
Her math is wrong. She doesn't account for expenses in month 6. It should take 10 months to pay off, not 6. Turning 6 years into 10 to pay off. Plus 14% interest is more than 7.75% all day every day.
Forget the LOC, put that $1100 to the mortgage. Online amortization tables Forcast 7yrs 3mo with this method.
@@mariahs1123I mean is that bad? It’s 30 years vs 7 and some people have decent jobs that pay a lot but bills cut it up by a lot I wonder if this method helps with retaining some of that money
I have no mortgage $125k house, no CC debt, no vehicle payments. I haven't had a vehicle payment since 2008 when i said never again.
Petersons are something else.
You must have 2 mil in the bank
How did u no longer have to pay for the vehicles?
Amen! Especially if the heartless repo men come through.
@@crystalsmith9038only buy vehicles you can pay with cash or once you pay one off. Keep up maintenance .
I had to watch this video twice. Thank you for sharing. This is great advice.
This is so exciting. I am going to do this! Thank you so much
Idk how I came across your channel but im about to binge watch everything on here. When I bought my first house in 2016 at 25 I threw up after closing when I looked at the amortization table. You don’t know what you don’t know until you do.
Her math is wrong. How are you paying bills in month 6? This messes up her whole timeline. Her method REALLY would take 10yrs. Putting the $1100 to the mortgage would have it payed off in 7yrs
This should be taught in every high school. You are amazing!
This. It's also why they don't teach you about the dangers of credit cards, loans, making and keeping a budget, etc. My son just turned 18, and our mailbox is flooded with credit card offers. I throw them in the trash and don't even give them to him.
WOW you truly are Vanntastic. Thank you for this.
Ill be watching this a couple more times. Its pretty unfortunate that so many have fallen for this trap but this video was a wonderful way to remind people you can make plans to avoid most of the headaches. Overall a lovely video and thank you for sharing
I found this at the age of 47. Wish I found this at 27.
Thank you.
57 here
@@mygoodlife204 better 47 and 57 than 48 and 58 :D
At 27, you wouldn't have listened....
@@williamheckman4597great way of thinking
@@williamlane9140 Why? I wouldn't say that. If you're unaware of this at 27 (which most people are) you just simply don't know. It doesn't mean you wouldn't listen if someone explained this to you in detail.
Wow! Thank you for this.
Instead of borrowing 10K with interest that you pay back in 7 months, why not just take the same money that you would use to pay off the 10K loan and pay down your mortgage? You will get almost the same results.
Loc isn't paid in 6 months. You forgot they have 4100 of expenses on month six and that needs to be accounted for as they have no money as they used their money to pay loc.
I ran this in a spreadsheet with her numbers. You could only pay the $10k every 9-10 months. It would take ~7.5 years to pay off this mortgage. If you took that extra $1100 and just paid that toward the mortgage every month, you'd actually pay off the loan two months faster, but you'd have paid $4k more for the overall loan.
Worth it. Build your wealth, not the Banks.
@@magma9138 I would rather people build their wealth by having investments. Paying off debt feels nice but isn't always the best. Considering 12k a year will turn into a lot more than the interest saved.
@@mrdanwilson1 Does the $4k you pay more on the loan take into account the interest you paid for the LOC along the way? I think if the interest was included, it would probably be cheaper just to pay the extra $1100 a month to the mortgage
I’ve run the numbers as well. I agree her math is incorrect. LOC is paid off every 9 months. This method costs the borrower about $3,500 more than just paying an additional $1,100 towards the mortgage every month.
Putting the income into the credit line is genius. The stupid part of it is it was right below our noses, and no one tells us! Thank you, thank you!
It's not genius. And she's just another snake oil salesman under capitalism.
This is something they don’t teach in College unless you are in Finance, or Business Major.
No... It's not. If you think using higher interest rate debt to fix your debt works... I have some snake oil to sell you. What would really save money is using your income to pay off the lower interest rate mortgage directly instead of using a high interest rate loan to pay off the mortgage. The only reason a mortgage has a "higher" interest rate is because it is the (rate)*(the number of years). Taking out more higher interest rate debt just means that you get to pay more debt on the way to paying off the house! Just save up and pay off the mortgage!
I don’t understand how she put the income into the LOC. looks like she subtracted it. That’s where she lost me.
@bubbleboy821 the idea is the mortgage is not the actual lower interest rate as she states. 7.75 interest calculated over 135k loan is greater than a 14% interest on a 10k loan. The lower number doesn't mean less interest when it's calculated over the amount owed. Additionally, at 1100/month it would take 10month to save 10k when the HELOC can allow the 10k to be paid up front, paid off within 7 months as she stated, allowing the 10k HELOC to be used again for a 2nd time in the amount of time it would take to save 10k once saving the 1100/month income.
How she's adding/subtracting the HELOC figures is throwing me off a bit but I can see the value in the strategy