How to Pay Off your Mortgage in 5 Years

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  • Published on:  Wednesday, September 13, 2017
  • THIS IS OUR OLD VERSION...WATCH THE NEW VERSION HERE: out the SEQUEL Video on how to use this strategy to CREATE Passive Income: for more helpful real estate related videos! 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!!!WATCH THE NEW VERSION HERE: sure to subscribe to our YouTube channel for more Real Estate Investing tips and tricks!FOLLOW #heloc #mortgagepayoff #helocstrategyDISCLAIMER: 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

     2 months ago +20


  • nico3641


     a years ago +26

    The video starts at @15:20 .   You're welcome

  • Ronald Coleman

    Ronald Coleman

     15 hours ago

    This works but takes a lot of discipline. I think it’s just better to pay more than your mortgage payment and do it bi weekly so that you accrue less interest
    This method is also called paycheck parking.

  • Jesus Zamora

    Jesus Zamora

     a years ago +8


  • MrBeard17


     a years ago +6

    People are brainwashed that bad by the banks to think its a scam? Go find a mortgage payment calculator and see how much interest you flush down the toilet, into the banks pocket. Then input higher payments and compare how much interest you wont give away to the bank... you'll see who the scammers really are.

  • Dennis Croak

    Dennis Croak

     a years ago +2

    WOW! You both are an inspiration...continuing to help others

  • Cyph18


     28 days ago +4

    I get it, only because I've always been fascinated by paying things off early mathematically to beat the interest

  • DIYerGirl


     1 months ago +4

    WOW! I'd been hearing about this method for the past year or so, and it came together with your description. I had an Aha! moment! Thank you!

  • Persisch.1


     3 months ago +14

    Daniel O'Brien nailed it a year ago. 1. This is not for everybody and you have to have a solid job and little cushion (Couple of months of reserve) in case of an emergency 2. You can't live paycheck to paycheck 3. You have to be able to make regular payments to your first loan / 30 Yrs fixed, because payments made to the first loan out of / from the HELOC Acct. won't reduce your monthly payments on the fist loan. 4. You have to have a decent monthly income coming in and deposited into your HELOC Account and push all of your fixed payments back to the due dates. 5. You have to have decent amount of equity in the house and you have to be able to afford the payments * You have to be super disciplined, have a monthly budget and have a solid plan to pay down and payoff what you are pulling out of that HELOC account to payoff the balance on the first mortgage otherwise you end up paying more interest like some folks have mentioned. You are basically using the same method banks use to maximize the interest they can charge you on the money borrowed (Daily Interest On the balance owed) against them by depositing your incoming $$ into HELOC account and reduced the balance owed therefore paying less interest for the time that your monthly incoming $$ hits the HELOC account till you pay off your monthly fixed expenses *

  • snotnosedlilkid


     5 days ago +3

    So your advising not to remortgage?

  • Trevor Schneider

    Trevor Schneider

     21 days ago +8

    You need to take this video down. The math and advice are WAY off. Its wrong. NEVER take credit loan out to pay your mortgage. make extra monthly payments.

  • Roberto Chupin

    Roberto Chupin

     a years ago +3

    NERD !!!!! but good advice :)

  • good4damoney


     3 months ago +4

    Watch the whole video! Without interruptions

  • WaxDat8800


     a years ago +6

    This works people. It’s simple math. It’s a cash flow strategy. It works as long as you are cash flow positive. Remember a mortgage is amortized interest. A HELOC is simple interest. Huge difference!

  • K D

    K D

     28 days ago +5

    It’s all fun and games until the bank calls your loans.

  • Nicolas Haney

    Nicolas Haney

     a years ago +1

    I get it. Thanks for the detailed info on your site. Your the man.

  • trace garretson

    trace garretson

     a years ago +2

    I have really appreciated the material you have provided. I would say I understand 95% of this strategy. However, I along with everybody I have talked this material over with agree that a visual comparison of the HELOC strategy vs making extra payments would be helpful. The amortized loan visual is an example of something we find extremely helpful for example. Providing us with a "HELOC" visual on an amortized loan next to an "Extra Payment" visual on the same mortgage would make this all so much more simple.

  • Michael M

    Michael M

     a years ago +1

    Thank you for your video very helpful in going over the idea.

  • Letty Perez

    Letty Perez

     2 months ago +2

    Thanks for the video! I totally get it!

  • James Norris

    James Norris

     3 months ago +13

    The way a mortgage works is that the first thing that comes out of a payment is the interest and then what ever is left comes off of the principal. However, any dollars that you pay beyond the payment is applied directly to principle. If you double your payment you will pay any loan off in approximately 8 years.