Is Velocity Banking the Fastest Way to Pay Off Your House?

https://www.youtube.com/watch?v=YmwHe1SC70A Want to pay off your house fast?  Considering Velocity Banking? You’re not alone.  So many people are motivated, whether by culture, values, or something else, to pay off their house as quickly as possible.  This desire is completely normal.  But it can leave you vulnerable to some pretty big unintended consequences. When we’re emotionally driven to do something, we can be attracted like moths to a porchlight to anything that promises that thing. When it comes to paying your house off fast, one such “porchlight” is Velocity Banking. The widely promoted strategy of velocity banking to pay off a mortgage uses a HELOC to replace your mortgage and pay off your house, usually within 5 – 10 years, and save interest. The problem is that we can be misled when the messaging hits all of our hot buttons, even if it doesn’t entirely make sense to us.  Save time, save interest? Sounds good, let’s go, right? Unfortunately, math can be used to tell whatever story you want, depending on what information you skip over or leave out altogether. When the claims don’t add up, but we’d like them to be true, we reason that someone else already figured it out, so we can just trust them.  Unfortunately, The lie is easier to tell than the truth is to explain. Todd Langford But when something doesn’t add up, it’s time to dig in and ask questions.  Your questions are likely more valuable than the answers you find. When it comes to your money, you deserve real answers so that you can make informed decisions. That’s why we’re digging into a case study.  We’ll answer the question: What is the fastest way to pay off your house? So, if you want to have the most financial control while paying off your house, tune in now! Table of contentsWhere Paying Off Your House Fits into the Cash Flow SystemThe Case StudyA HELOC Is Riskier Than a Typical MortgageRisks of the HELOCVariable Interest RatesHigher Interest Rates Than MortgagesIncreased Payment Required During the Repayment PeriodThe Draw PeriodThe Repayment PeriodExactly what will this new payment be? How could you solve this problem of a rate increase? Why does the minimum payment matter if the point of Velocity Banking is to pay maximum payments? Velocity Banking vs. Extra Payments: Which Is Truly Faster?What Is the Safest Way to Pay Off Your House?How to Pay Off Your House Fast and Stay in ControlFind Out More Where Paying Off Your House Fits into the Cash Flow System Many people looking at velocity banking to pay off a mortgage are missing where this strategy fits (or doesn't) in the broader Cash Flow System. Owning a home requires paying for it. And paying for anything, no matter how you do so, affects how much of your money you keep. Making the best financing decisions gives you more to keep and put to work. But no matter how much money you keep, it’s just one small part in the bigger picture of building time and money freedom. That’s why we have created the 3-step Business Owner’s Cash Flow System, your roadmap to take you from just surviving, to a life of significance, purpose, and financial freedom. The first step is keeping more of what you make by fixing money leaks, becoming more efficient and profitable.  Then, you’ll protect your money with insurance, legal protection, and Privatized Banking.  Finally, you’ll put your money to work, increasing your income with cash-flowing assets. Paying off your house happens right here in The Money Finder step of your financial foundation. When you find, recover, and keep more of the money you’re making, you put more gas into your cash flow machine. However, being debt-free isn't the same as being in control of your financial future. The Case Study We’ll walk through Truth Concept’s report by Todd Langford and Elizabeth Hagenlocher, Are Accelerated Mortgage Programs Using A Home Equity Line of Credit Effective?