In this video, we go over the basic's of what we teach here at Replace Your Mortgage which is to pay off your mortgage faster and quicker with a home equity line of credit (HELOC) instead of getting a traditional mortgage loan from a bank.
Hey gang, Michael Lush. I'm a fourteen recovering mortgage banker. What I want to talk to you about today is the basics of what we teach, using a home equity line of credit to pay off your mortgage in five to seven years literally without changing your budget. What I want to explain to you guys today is a little concept that I came across about four years ago. I had a mentor of mine, a very wealthy individual, explain this to me. One this that he explained to me is that a checking and savings account is actually a liability. I always thought of it as asset which really surprised me.
I thought if you had a bunch of money in your checking and savings account, that's quite a bit of an asset. In fact I was completely wrong because today banks are giving you about a zero percent rate of return on your checking and savings account. However inflation is going up on average about one point six percent. Technically your money is moving backwards. What he explained to me is that money cannot remain stagnant, it's either got to north or south.
You're actually losing money every day by putting your money in a checking and savings account, thus your checking and savings becomes a liability. What we're going to do is we want to show you how to bypass that systemic problem and actually use a home equity line of credit as your checking account, because what's cool about a home equity line of credit is it's open ended. Money can move in and out freely, twenty four seven, three hundred and sixty five days a year.
Instead of using your checking account and allowing the bank to then turn around and give your own money back to you in the form of mortgages, credit card and car loans, we're actually going to use a home equity line of credit. You're going to deposit all of your money into a home equity line of credit just like it was your checking account and then you're going to pay your bills out of it just like you would as a checking account.
By doing that you're actually going to accelerate the payoff of your mortgage and cut your mortgage at least by one third. Hold up. I don't think that's right. You're cutting by two thirds actually. You're getting it paid off one third at a time. Instead of having thirty years to pay for a mortgage you're actually going to get a home equity line of credit using your existing cash flow and nothing more, not paying more, not paying less, just changing where your cash goes and you're going to get a home equity line of credit paid of in five to seven years.
Now this is the basic concept of what we teach. We actually go further in depth and we get in some extremely advanced strategies that can accelerate it even further. This is a great tool to build wealth and we get into those as well. Be sure to check out our other videos and subscribe to our channel here. Look forward to hearing from you. Take care gang, God bless.