What was your mortgage situation prior to starting with Replace Your Mortgage?
We had a 30-year mortgage with a balance of $375,600 for our home that is appraised at $480,000.
We bought our current home in May 2016 so we were less than 2 years into the mortgage.
What is the current status of your HELOC and how many months did it take you to achieve it?
As of October 8, 2018, our HELOC balance is $308,900. In 8 months, we have reduced our principal balance by $66,700!
We closed on a first-lien HELOC on February 10, 2018 with Bank of America. The process was mostly smooth. We submitted our application a few days before Christmas 2017, so there was an initial slowdown during Christmas and the New Year’s holidays.
We have been using direct deposit from our paychecks to a checking account. Then, the money is moved immediately to the HELOC and most of our bills are paid through the HELOC. We also put the money in our savings account into the HELOC.
What was your biggest concern when deciding to join RYM?
The variable interest rate. My engineer husband was convinced it would not be in our favor to have a variable interest.
He wanted to prove this to me, so he ran the calculations and came to a surprising conclusion: the HELOC is a more favorable product than the mortgage.
How has using the RYM strategy changed your life?
RYM has given me hope of freedom and also provides financial peace of mind. I am free from the ball and chain of the mortgage (death agreement), and I have peace of mind that I can access the cash I put in the HELOC in the event of an emergency.
Also, as I put money into the HELOC, I have enjoyed watching the reduction of the monthly required balance due.
In a previous mortgage, I paid extra principal to bring down the balance, but I could only put in money that I would not need to access. And then I had to wait to sell the home to get access to that money.
Being part of RYM has been one of the highlights of 2018 for us! Thank you and God bless you guys!
What advice would you give to a homeowner considering trying the RYM strategy?
Go for it!