Method Of Repaying Mortgage Loans Within Five Years

My wife and I; buyers “; living in our current place of residence for at least 7 years. Please note that I mean” house “. Buyers”; “Not a house”; “owner”; the common misconception is that when you get a mortgage, you will have a house. Owner

Suppose you get a mortgage for 30 years. The reality is that you will only buy a house in 30 years. The bank is the real owner of real estate. If you don’t believe me, just pay less mortgage and see what happens.

Three months ago, we paid off our 30-year mortgage(7 years in advance, or 23 years in advance). Now we are the real home; owner: “In this article, we will show you how we do this step by step. Use existing earnings without increasing liabilities.

Capital fund

Let’s talk about “; shares”; stock or appreciation is the difference between the value of your house and the money you owe the bank. So if you owe 100000 daughters, your house is worth 300000 daughters, and your house has 200000 daughters’ equity.

My family has about $250000 in shares. We owe the bank $115000 and our house is worth $367000.

This $250000 is dormant. It looks good, but it doesn’t help us.

Home equity credit line(HELOC)

So the first thing we did was “use” the stock. We went to the bank to draw a $50000 home equity credit line.

What is the equity credit line? Also known as HELOC, the credit line of household assets is a liquidity line, which can be withdrawn at any time for any purpose. It’s like a huge credit card.

HELOC has a limit of $50000, but we owe $0 when we withdraw money. Because, like credit cards, you don’t owe anything until you actually use them.

Mortgage loan from HELOC

Upon receipt of HELOC, we immediately withdrew US $20000 for mortgage(additional principal payment).

Therefore, at this point, we have a HELOC of $20000 due, but our mortgage has been repaid of $20000($115000 to $95000).

HELOC is used as. New “; checking Account

Before continuing, I will mention that after the mortgage loan is repaid with 20000 dollars, there is the same debt of 115000 dollars(HELOC’s 20000 dollars and the mortgage loan’s 95000 dollars).

Therefore, in order to pay HELOC, we just use it as our new checking account. When we get the salary, we get 100% salary, which is applicable to HELOC.

Now you can think. “; we spent all our money in HELOC. How did we pay?” “Remember HELOC is an integral part. Liquid”; therefore, at the end of each month, we draw a sum of money from HELOC to pay our bills(including mortgage loans).

100% Cash Flow

For us, our total monthly salary is about 6000 dollars. Our bill includes mortgage, and all living expenses(gasoline, groceries, etc.) are about 3500 dollars. Therefore, by applying 100% of our monthly checks to HELOC, and then using HELOC to pay bills, we can use 100% of our cash flow to pay HELOC of $20000 per month.

Therefore, the cash flow is estimated at $2500($6000 minus $3500), and $20000 will be completed within 8 months.

Repeat the process.

This process is repeated until the remaining $95000(approximately 2 years) is settled.

What can I do for you, please?

1. Cash Flow – Your family budget must have the right cash flow

2. Credit score – good credit score(above 650)

3. Fairness – Your family’s fairness.

What are you doing?

Very important: HELOC should be used to repay the mortgage. It is not used to support vacations, car purchases or boating.

Equally important, HELOC is not a Residential Entitlement Loan(HEL). Residential secured loans are treated equally as the second type of secured loans.