Does Velocity Banking work????

232 Replies

Hey everyone ive been hearing about and researching VELOCITY BANKING alot lately. Seems too good to be true. Any of you experts have experience in this field and can confirm or deny? Thanks everyone!


Yes, it works......but simply paying extra toward your mtg out of your pocket does also...which is what you’re doing with a heloc. There is nothing magic about it. 

Yes its instead of having a cash balance in checking youre constantly pushing it to the loan then moving around between the debt. Cash in savings would be dead weight because its not actively paid against 1 of the loans. 

@NIcholas Hamel

Ive studied it some. Ive not found a bank where you can use it as conveniently to use as a debit card instead of a credit card.

My holdup is that any cash in any account is lost traction.

Im sure it or snowball by balance or snowball by interest rate all work if you stick too it.

Truthfully any extra principle helps.

@Blake Garcia . I have a HELOC for 75k. I'm thinking about doing it. Can u get a debit card to use for all your everyday expenses do I have to use the checks only to access the money?

@NIcholas Hamel

All the youtubers sound like they do it directly. I have never had 1 that accessible. I figured id have to keep a grand or a week of expenses in checking or just use credit card and pay the balance monthly when its due before any interest accrues.

@NIcholas Hamel An amortized mtg IS still simple interest, just like a heloc.....the interest due that particular month is simply your balance times the annual interest rate, divided by 12.  There is absolutely No difference in the interest charged. 

The Only reason either method pays your mtg down faster is because you are making Extra payments toward the mtg.....with the heloc you are just borrowing that money and have to pay it back, with interest.