HELOC: SECRET To 0% Interest To Pay Off Mortgage!

How about this after I open a HELOC and put all my paychecks directly into my mortgage. I pay everything with a credit card. I get paid. I pay off credit card at end of month. Remaining balance goes into mortgage. Rinse and repeat. See? I didn't touch HELOC. Its there just in case as a lower interest rate tool than a credit card. Scam unless the APR on the HELOC is similar to your mortgage. No more than 2% delta for this to work or have massive savings to dump into it.

This sounds nice when its a 100k mortage balance. Most people have a higher balence than this.

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I don't get it if you only have 7k of income each month how are you spending 14k each month out of the helock

so what he said is very similar to ..

1. you save $7000 and put that chunk into the principal
2. save until $7000 and put that chunk into the principal
3. you don't pay any interest
and you will pay off your mortgage fast..

his method is just paying 7000 up front and reduce the balance of the heloc to 0 before you do it again (instead of you wait until save 7000)

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What about bank fees

This mad confusing lmao - just bouncing debt around different places

My life is already too complicated! Let’s just make it 10 times more confusing! That’s way too much work Man! I can definitely see someone getting in trouble with this method!

The first position is faster and does not require a credit card or the intricate timing.

My opinion, this is crazy. South Africa offers access bond/mortgage account this is so easy and simple to understand and definitely will help you free your home instead of adding another lender like the HELOC with higher interest rates, plus a credit card and if you slip up on managing these accounts then wow you will regret it. USA banks need to offer mortgage access accounts and stop complicating peoples lives!

just pay extra to your principal and ignore this HELOC garbage ! on a 30 year mortgage pay 1/2 your payment (more) per month and reduce the term by half ... pay double your payment and reduce the term by 2/3

We opened a Heloc and we want to begin paying off some dept and directly depositing our income into our Heloc account.
We are being told that the Heloc cannot accept direct deposits from my employer and we’d have to use a separate checking account that is set up to auto pay the interest. Our direct deposit can go into the linked checking account. Is there any truth to this? We want to make automatic weekly payments to the HELOC account without it being a weekly chore to do so with another checking account. Any help would be greatly appreciated

Or, you could pay the mortgage directly from your paycheck, and then pay off the credit card with your next month's paycheck and have the exact same effect because you're not using the heloc at all

This guy is funny!

Ok. Bad news. I have studied your system here pretty deeply. Perhaps I am missing something. BUT; if you take your "$7000 income", use it to pay off your credit card, and put the rest into your mortgage as extra principal - You have accomplished the exact same thing without ever getting the Heloc!!!. You pay down your existing mortgage and you pay no interest on your card or Heloc (which you dont even need.) The only thing you can say here is you might want the Heloc in case you need extra money in an emergency (which the mortgage loan cant do for you). Otherwise, I think Im right. Thoughts?

Interesting concept, poorly explained

Why can’t you just transfer all 7k( once) from checking to mortgage and then use credit card to pay expenses , why would you need a heloc then? even if you paid 7k your mortgage payment still applies , where does that come from as you cant take that out of a credit card?

Talk about "Juggling Chainsaws". Making just the slightest mistake could be fatal.

Sketchy AF

what am I missing? if you repeat this cycle every month, your HELOC balance will increase by the amount of your expenses, will it not?

Why isn’t one of the Kwak brothers addressing the “missing” $3K that I came to write about as did so many others?? After the first month, you’re only left with $3K after expenses…

I am soon to be a military retiree and curious about getting my retirement deposited into a HELOC vs Navy Fed. To request assistance, which link do I use?

let me rephrase this... pay an entire month's wages to your mortgage to reduce the principle by a lot.. thus lowering next month's interest payment... then pay bills with the credit cards and pay them down with whatever income you get next (none if you already put down your month's wages) and the rest with the heloc. then for future months, put all your wages to pay down the heloc as fast as you can, and pay the regular mortgage payment from wages/heloc. repeat the process. i just opened a heloc to use for emergency, so I'll try it out for a couple of months and see if it makes a difference (reducing my home interest payments and keeping my heloc interest low). it sounds nice in theory, but in practice I don't know how much of a difference it will make.

Credit Card gets paid 1 day before income comes in

My head just exploded. And I have questions.

I didn’t get what’s happens between 25-30 days when the HELOC will show some Balance? What’s the average APR on a HELOC? Is it 24% like credit cards?

Can I use my Rental LLC account to pay back my HELOC ?

Am I missing something? You’d be compounding a $4k/month balance against either the HELOC or credit card by doing this.

I'm confused as to why you would need 50k heloc if you're only using around 7k each time? Wouldn't it be the same if you just had 7k sitting in the bank and made lump sum payments with that and replaced it with your paycheck? Maybe I'm missig the point 🤔

This method is unnecessary. All you are really doing is taking the extra $3,000 of extra income ($7k income minus $4k expense) and applying it to the mortgage. You can do that directly each month by simply paying an extra $3k to your mortgage. The rest of that nonsense is unnecessary.

Great Info.

Hello, thanks for this video. In my case I have no mortgage, how do I achieve 0% balance for my Heloc with my income and credit card? Thanks.

but what about the mortgage payment though? you have $4000 of credit card debt, but we also have a $3500 mortgage lol.. putting 7k directly into the principal wont remove that mortgage payment, right?

Only issue I see with this is, people are paid biweekly, not at the 1st of the month.

Damn, I am impressed.

I'm not going to say this strategy won't save you money, but it's not as magical as it sounds. Essentially all you end up doing in this example is floating 7k in debt between 3 lines of credit until you pay off the HELOC or your mortgage. That's a lot of juggling for 5, 10, or 15 years. I suppose the other benefit is that you are tricking yourself into making a double mortgage payment, but you don't need a HELOC to do that (in this example anyway).

It is not that so simple - if you bowered $7000 from Heloc and them paid off by depositing your income which is again $7000, where you get the $4000 to pay off your credit card debt? that being said, you might be need $11000 income or you may get use revolving Heloc credit and pay $7000 over time which you must pay interest ( can be 4 to 5 % correctly).

This plan sounds messy. What happens when 🤔 next months bill come. Do you throw 7000 or do you throw 3000. Because you transfer $4000 dollar to your heloc.

So question that I can find the answer too. When the interest rate is variable is the monthly payment also variable ?? Or with the monthly stay the same and the amount that goes to principle vary??

Did you miss count 7k to 3k to principal ?

Am I missing something? This would in theory only get you "ahead" by a single month wouldn't it? The 2nd months earnings would be to pay off the debt and recontinue the cycle? So 7k to mortgage first month, 2nd month would be $4k to HELOC and 3k to mortgage so 10k to mortgage and 4k to debt of a total 14k income. The last month of the cycle would have you paying off the 4k debt and 4k expenses cancelling out any benefit? How would it be any faster then not using the cc or HELOC in the long term? Or is the purpose just to extend the debt by a week or so until the next payday avoiding interest?

I'm confused. Why do you need the ELOC in the first place? Why not cut out the middle man, and just save $4000 to pay off the credit card and pay the rest towards the mortgage principal? After the first month, if you're trying to keep the ELOC at 0 as much as possible, you can't put all your income into the mortgage. You have to use your income to pay off the ELOC, right? Am I missing something?

Month 1
First Day: $7000 from income > Mortgage Principal
Last Day: $4000 from ELOC > Credit Card Payment
Credit card is paid off, Mortgage principal is reduced by $7000, ELOC principal is at $4000, until...

Month 2, 3, 4, etc.
First Day: $7000 from income
- $4000 > ELOC
- $3000 > Mortgage Principal
Last Day:$4000 from ELOC > Credit Card Payment
Credit card is paid off, Mortgage principal reduced by $3000, ELOC is at $4000... (you pay it off the next day)

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I have a mortgage free home. My question is I would like to buy a new car
Since this will be expensive

Hello! Thank you for your videos!

Which institution are your top 2 or 3 for applying for a Heloc?

Hello All, I know this works, But what is the best company to get the HELOC from?