Michael Lush

How Brad in Ohio Got a HELOC (Plus $8,000 for Home Improvements) Before His First Mortgage Payment Came Due

What was your mortgage situation prior to starting with Replace Your Mortgage?

We were midway through a Lease with Option to Purchase.

I was able to buy the townhome for $195,000, BUT the appraisal came in at over $280,000... with an immediate $95,000 increase in our equity.

What is the current status of your HELOC and how many months did it take you to achieve it?

There were numerous obstacles, delays, etc because I had to first get a traditional mortgage (due to my lease option structure). I went with a local Savings & Loan and got a "REFI" loan of 3.5% with NO closing cost... and a very favorable $280,000+ appraisal.

Upon closing that loan, I then started working with two banks for the first position HELOC. Closed on the first-position HELOC (funded at $195,000) before my first mortgage was even invoiced.

We borrowed about another $8,000 (increased our HELOC to $203,000) to make some improvements (hardwood floors on the entire first level, paint, etc).

I just received our first invoice and was pleasantly surprised that our current HELOC balance is $186,400 (paid off additional $16,600).

What was your biggest concern when deciding to join RYM?

Spending money on a maybe. But, after doing my due diligence... and making some calls to some banking friends... and praying not to make a "foolish" investment... and speaking numerous times with Randy... I made the payment.

The very act of doing that put me into "GO" mode, so I could implement the RYM strategy.

How has using the RYM strategy changed your life?

The RYM program made a huge difference by forcing me to check out numerous banks and credit unions to get the best offer.

We are now very laser-focused on paying down the first-position HELOC within 3 to 5 years... but there is NO pressure because I now understand how it works... and THAT IT DOES WORK…

And, if we need some additional funds, we know that we have the flexibility to make that happen. Just made us aware of a "hack" that I never knew about... and it is accurate and does work.

What advice would you give to a homeowner considering trying the RYM strategy?

Sometimes and, really, quite often, I've learned that what we've been taught in school and life is often WRONG.

The financial institutions count on us being like sheep to go for a 30-year first mortgage. And then a 10-year second mortgage. And then, in about 5 to 7 years, refinance those loans into a new 30-year first mortgage and start the whole process again.

After I ran the numbers on my own, I could not disagree with the math. What a wakeup call.

Michael Lush

Disclaimer: Replace Your Mortgage does not offer mortgages, Helocs, or loans of any kind. Replace Your Mortgage is not a bank, and does not provide credit offers. Replace Your Mortgage is strictly for educational and informational purposes only.
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