All Forum Posts by: Brian Cardwell

Ask those who say it is magic or scam or fairy dust. I never said it was the best way or the only way. I said it was a tool.  I just explained it the way I did it. 

One question for you. Does this method accomplish the goal of paying off ones mortgage?

You would and you may in fact pay your mortgage off sooner. 

Nope not saying that at all. The results would be very similar. What I am saying is that I still have easy access to my extra money if I need it for something.

Here is almost what I did. It worked. Call it what ever you want.

Basic facts :

Primary mortgage. Equals 200k

Salary equals 5k.

Total monthly expenses equals 3k

HELOC equals 20k in second position

So lets start this off.

First let's pull 10k out of the HELOC and put it on the principle of the 1st mortgage.

First mortgage = 190k

Heloc= 10k balance

Month 1

Then let's put your entire paycheck in the HELOC acct. This accomplishes paying the minimum payment on the HELOC.

HELOC= 5k balance

Now let's pay your expenses from your HELOC.

HELOC = 8k balance 5k(balance)+3k(expenses)

Month 1 balance

Primary mortgage 190k owed

HELOC 8k owed

Total debt 198k owed

Month 2

Put the entire paycheck in the HELOC

HELOC balance 3k owed (8k-5k)

Pay expenses of 3k

Mortgage Balance 190k

HELOC balance of 6k owed (3k+3k)

Total debt is 196k

Month 3

Pay expenses 3k

HELOC =9k

Put entire check in the HELOC

HELOC = 4k

Mortgage Balance owed 190k

HELOC = 4k

Total owed 194k

Rinse and repeat......

In month 5 your heloc balance owed will be 0.

Month 6

I would not expect you to think your comments were slinging mud. Being in the lands of tooth fairys would explain why you feel like  that. (See what I am doing here ... slinging mud) passive aggressive.

It's ok if you think it's appropriate. Now I know and will follow your example. 

Love ya bro.

 My heloc was prime -.50. My mortgage was 5%.

I didn't have the 10k to put on my mortgage when I started. So where did it come from? It came from the bank who use my home to collateralize it. Call it my money or the banks money, it is still my heloc. The HELOC didn't facilitate it. I agree. What it did, was allow me to still have access to my access money while allowing me to pay chunks down on my mortgage.

There is no magic to it. It is still paying the principle down early. I just used the HELOC to give me access to the extra money I was paying to the bank

I would hope that BP would have moderators who would have enough self censorship than to criticize something they disagree with without slinging mud. I would hope that is community could have a conversation and disagree with one another without slinging mud. Maybe I am wrong.

So Mr. Felice, I walked the walk for almost 7 years. My mortgage was paid off by making large payments to my priciple. The difference is I still had easy access to the chunk money I was paying out, by using the HELOC. If I had paid straight out of my checking acct. I would not have had easy access to that extra money. Why is that so hard to understand? Why is that bad? I just moved money around in a different way than most.

 At the end of the day I saved 10s of thousands of dollars over paying my mortgage out for the 30 years. I have no mortgage and I was comfortable while levering the banks money to pay my mortgage.

 I am not saying this is the only way or the best way. But it is a good way that nets results. I did it. If I hadn't done it I wouldn't be discussing it with you. I am discussing  facts not theory.

@JD Martin

This "RACKET" is not for the financially irresponsible. How would you handle your car breaking down now? What would you do if you lost your job now? Those are irrelevant questions. Nothing is different in your daily life except how you move your money. It is more than psychological benefit. This method is far from a "racket". 

With all due respect, Mr. Martin I wouldn't expect a moderator here to sling mud at a technique he doesn't agree with.

@Victor S. 

With a credit card, there is inherently more risk. The money used to pay the mortgage would be a cash advance which likely wouldn't fall in to the zero percent rate. The banks are more likely to freeze the balance or even change the terms mid cycle. I am sure there maybe other reasons but this is what I can think of at the moment. 

So before you say the banks can do that with a heloc, I will address that to. The bank is less likely to do any of the above because the HELOC is secured by the home. Your terms will not change in the middle of the contract with a heloc.

@Ben Zimmerman, 

I never said it was because of the HELOC that the mortgage was paid off earlier. I think we all are in agreement that we are putting more money towards the principle. The question is how are you going to do it. There are many ways to skin a cat. If you are going to quote me please be accurate. Seems as though you didn't read the thread. I totally understand that if you didn't.

  So here is the problem with these post. These post are not as detailed as they should be if this were a "how to" on velocity mortgage technique. It isnt. 

Also so that you and others understand, I have used this tool and it worked as described. Some of the details that you and others seem to want to point out, would take a book to write about it all. Those that have read these post should know how to start and if they need more details should also know how to get the details. I won't go into all those ways. I also am not an expert on this technique. I just feel inclined to correct those that come to this forum and bash something that I know works and have done. If I hadn't used this to eliminate my mortgage, you would never hear from me. Those that say it doesn't work, either have never used the tool, don't understand the tool, or just want to be a negative nanny. 

If one paid cash for their home, we wouldn't be have a discussion about mortgages, would we? Again I didn't say I saved 90k. Reread my post above. If you are going to pick apart my post, please be accurate.