Accelerated mortgage calculator free#

That said, having more equity will allow you to get a larger line of credit, which can help to accelerate the progress. You don’t need a huge amount of equity in your home, but you need enough to be able to qualify for the HELOC (which is essentially a credit line that you take out using your home as collateral). Positive cashflow (meaning your income exceeds your expenses each month).A credit card for your normal living expenses.In order to leverage velocity banking, you need: There are a number of moving parts, and there certain requirements that mean the strategy isn’t an option for everyone.

Velocity banking is somewhat complicated, which is one of its drawbacks. It facilitates this by allowing you to pay down the mortgage principal balance in large chunks instead of bit-by-bit as you normally would. The concept is called “velocity banking” because it can help to increase the velocity (or speed) of your mortgage debt payoff.

What’s Not To Like About Velocity Banking?.

Question #7: What are your other sources of emergency funds?.

Question #6: Would you save more by refinancing?.

Question #5: What are the additional costs associated with your HELOC?.

Question #3: What is the interest rate of the HELOC?.

Question #2: Is paying off your mortgage ahead of schedule your best long-term financial move?.

Question #1: How much positive cash flow do you have?.

Still, we wanted to take a deeper dive into this increasingly popular strategy to see whether it’s a responsible and effective way to save money. That means you’re using debt to pay down debt, which is usually a cardinal sin in personal finances. Velocity banking involves using a home equity line of credit (HELOC) to pay off your mortgage faster than you otherwise would. One of the methods that’s getting attention these days is an approach known as velocity banking, which is sometimes said to allow you to pay off a 30-year mortgage in as little as five to seven years.

Accelerated mortgage calculator free#

And for many of us, eliminating mortgage debt and owning our home free and clear is one of our most significant long-term financial goals.īut despite the fact that millions of people are searching for ways to pay off their mortgage ahead of schedule and get out from under that debt, there are relatively few legit options or solutions, aside from simply paying more than the monthly minimum. No one likes making a mortgage payment every month, or owing hundreds of thousands of dollars on a home. May earn money when you make a purchase or sign-upĪfter clicking. Some of the links on our website are sponsored, and we