How to Pay Off your Mortgage in 5 Years

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  • Published on:  Wednesday, September 13, 2017

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    Ever wonder how you may be able to pay off your #mortgage within 5-7 years (depending on your situation) without adding a single penny to your payment and not #refinancing? Sam Kwak is going to show you a strategy in how you can use a different method/instrument to pay off your mortgage quicker! This strategy is called the "Debt Free Acceleration" Strategy. This strategy has many other names such as "Velocity Banking", "Mortgage Acceleration", "Accelerated Debt Reduction", "HELOC Strategy", and more!

    We first need to understand how mortgages work. In this strategy, we are using a Home Equity Line of Credit (HELOC) as a leverage to pay off the mortgage quicker and still maintaining our income and expenses as how they are. You can also use other instruments such as Business Line of Credit, Personal Line of Credit, or Credit Cards for the purpose of this strategy. The beautiful thing about this strategy is that it allows us to take an inefficient debt and convert it over to a much efficient debt.

    The emphasis on this strategy is mainly on cash flow and principal balance reduction. The adage strategy of taking your hard earned money you earn and paying extra toward the principle is an old school strategy. While it works, the Debt Free Accelerator Strategy is a much more efficient way of paying off an amortized debt. This strategy will also work on Student loans, car loans, personal loans and so forth! Don't let the banks trick you with their amortized products!!!

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    #heloc #mortgagepayoff #helocstrategy

    DISCLAIMER: Sam Kwak is not a licensed mortgage broker, not real estate agent, not a Certified Financial Planner, not a licensed attorney, and not a Certified Public Accountant. Viewers will consult with their professionals prior to engaging in any financial strategies. Not everyone will experience 100% success rate with using this strategy. This strategy does require equity, a good standing with your current mortgage and the patience to use the strategy. The result of paying off your mortgage within 5-7 years is atypical but it represents a likely possible outcome for individuals who use this strategy. We (Novo Elite and DBA The Kwak Brothers) does not warrant a promise or a guarantee any specific outcomes and/or results from the use of this strategy.
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  • The Kwak Brothers

    The Kwak Brothers

     4 months ago +34


  • Lorena carlson

    Lorena carlson

     14 hours ago +1

    Horrible explanation, it doesn't make sense what you are saying...... Sorry.

  • Maria Mendez

    Maria Mendez

     yesterday +2

    This is incredibly confusing...

  • lisa scott

    lisa scott

     yesterday +1

    If you just throw a additional four hundred dollars a month towards principal only you will pay your mortgage off quickly! I throw all my spending money on my principal! Before I buy something, I usually choose to throw my spending my towards principal! 20, 30, or even 50 dollars a month brings your principal down! I paid my mortgage off in four years by not purchasing stupid items that I do not need! Be smart! Extra cash just throw on principal and that total will come down fast! Believe me!

  • Snoop Catt

    Snoop Catt

     2 days ago +3

    I'm trying to follow along with your logic here but it's extremely flawed... If the person has a $5,000 income and they put 100% of that towards their HELOC, then NO, their mortgage isn't just "automatically paid". You do not address that whatsoever in this video and it seems like you're a snake oil salesman... I don't think you are, I just think when you are assuming that $2-3000 dollars for a mortgage payment comes OUT OF THIN AIR when the person ALREADY USED ALL of their income to their HELOC.. That's BEYOND DISINGENUOUS. Please clarify. 🤔🤷🏾‍♂️

  • J NO

    J NO

     2 days ago

    Its a cool idea.
    Simply reducing the amount time money is exposed to interest.
    The most complex part is the fact that the Heloc is likely double the interest of the fixed rate mortgage.
    The player will need to craft an income and expense schedule to minimize time exposure enough to offset the increase in yearly APR. Many lenders now offer payment date adjustment to assist.
    If done incorrectly though, the player pays more interest.
    Done right, the player pays less interest.
    There are similar game strategies with 0% credit cards

    Money is a game. One of many things parents need to teach their children.

  • Pong Bunnalai

    Pong Bunnalai

     4 days ago

    Higher risk higher return. This will work if you can stick with paying higher monthly payment (mortgage+heloc) and do not factoring in lose of income risk.

  • Chris Fraijo

    Chris Fraijo

     7 days ago

    Velocity of money and debt roll up is a more effective way of paying off your mortgage. Having a HELOC is adding more debt and the variable interest rate could mean a substantial increase in payment. The idea is to roll over debt into a cash account earning interest and using that investment as a way of paying off your mortgage, all a while, continuing to make the same payments into the new investment account. Nice concept guys, but very impractical and not suitable for many individuals.

  • Ellenor Bovay

    Ellenor Bovay

     7 days ago +2

    Thats not going to work. You borrowed 25K at a higher rate, to pay off a debt at a lower rate. Then you magically pulled 5K out of the air and reduced the 25K debt to 20K debt. Then you BS'd us about the kids and the groceries, which has nothing to do with any of this, and Viola! You came up with a bunch of BS. If you just put as much as you can into your mortgage, the interest drops accordingly and the principle paid goes up. Plus the mortgage is tax deductible. I don't think a HELOC is tax deductible.

  • Stephen P

    Stephen P

     7 days ago +1

    HELOC is a form of DEBT, it is not a bank account or asset. Like they said, it is like a CREDIT CARD, i.e. a BAD IDEA. What’s going to happen? They will charge you interest, of course! (and don’t be fooled by the glowing talk of “average daily balance,” yes, of course you can tweak with the cash flow and balance a bit, but small potatoes, do the math yourself: $97,500 with a good portion of it at 7% interest (and the rest at, say, 4%), is way worse than 4% interest on the whole $100,000. What else could happen? Your lender could foreclose on the HELOC early, or jack up the interest rate (say inflation rises like it did in the 80s, would 20% interest on $97,500 sound attractive)? Just pay the frickin mortgage like normal. You’ll pay it off faster (since you can’t make lower payments like you can with a HELOC or credit card, leading to more debt problems and interest than otherwise would be the case with disciplined payback), and with WAY less risk to you and your family. Unlike these quacks, I actually have a 4-year finance degree and have been a licensed independent advisor, and am intimately familiar with how these things work. You can’t borrow your way out of debt; the only people who think you can are running for congress. Run!

  • Molly Mpshe

    Molly Mpshe

     7 days ago

    What happens if you decide not to spend any money from your Heloc Account. For example, if you just decide to leave the $25k on your Heloc without using it to pay for any necessities?

  • Dick. C. Head

    Dick. C. Head

     7 days ago +1

    As im sure ur aware that the word MORTGAGE is derived from the french and translates as DEATH CONTRACT. What do this tell you? Rich/San Jose

  • Doyle Fam

    Doyle Fam

     7 days ago +2

    Hey guys any small YouTubers wanna help each other out lmk 🎃🙂

  • †ANGÉ|†


     7 days ago +1

    15:14 "...two ways to skin a cat here..." bro, hahaha. funny guy, Thanks for the quick info!

  • Larry Leung

    Larry Leung

     7 days ago

    How do you qualify for a HELOC if hypothetically you want to buy a $500,000.00 property with say $100,000.00 down? Typically a buyer would apply for a mortgage for $400,000.00.

  • NotYour YesMan

    NotYour YesMan

     7 days ago +1

    So basically begin to use your HELOC like a prepaid credit card per se!! This is really smart as hell!! Honestly, a mortgage is the bulk of your bills👍🏽

  • Jennifer scarlata

    Jennifer scarlata

     14 days ago +4

    This is a very funny idea that you can make money by making more debt. I'm a bit confuse about your strategy I will just continue with credit streamers mortgage plan I have just a few months remaining.

  • Zawya Werkey

    Zawya Werkey

     14 days ago +1

    I would have liked to hear the comparison between the two rather than telling me your preference. Because, I don't know the agenda behind your video.

  • ptooti


     14 days ago +1

    small detail how do you get home equity when you have zero equity in your home ? looks like a clowns juggling act to me just hammer the principal down each side of the mortgage renewal date.

  • Leta Dean

    Leta Dean

     14 days ago +13

    This is a joke, right???? Taking on a second mortgage at a higher interest rate increases your debt. Didn't you know that a home equity line of credit is a credit card the size of your house!! Very Dumb. Just make bigger payments each month towards your mortgage and you will whittle away the life of your loan sooner. Swallow your pride and drive an ugly old car instead of having car payments. Whatever you have to do. This will free up extra money towards the principal on your house. Get a side job twice a week and put all of that income towards getting out of debt. Put all your tax refund into an extra payment. Lots of ways to do this. But never ever take on more debt to pay off your house.