What was your mortgage situation prior to starting with Replace Your Mortgage?
We sold our home in Texas that had a 20-year home-equity loan (recommended as a cash-out refinance after our remodel was finished) and moved to Utah.
When we found RYM we were renting, looking to invest the money we netted from our home sale. We had just learned about the line-of-credit chunk method from Renatus and began researching. We were also Dave Ramsey followers and had no debt, so we started looking to buy an investment home and pay it off using a HELOC.
A Renatus teacher said we should buy our own home first. Since we didn't have any mortgage, we thought doing a first lien with low closing costs would be cheaper. The cost of RYM Platinum was equivalent to mortgage closing costs, so we figured we had nothing to lose!
What is the current status of your HELOC and how many months did it take you to achieve it?
We have had a HELOC since the end of May 2018 for $486,000. Today, 4 months in, we owe $481,000, which is about equivalent to 7 months of payments on a 30-year amortized mortgage.
However, we owe about $5,000 on our offset credit cards. With waiting to the get auto-drafts set up, we haven't been able to do the paycheck parking strategy fully yet.
What was your biggest concern when deciding to join RYM?
We were worried about paying the membership and still having to get a mortgage with closing costs first.
Our bank ended up costing us about $4,000 with their delays and changing policies, so in the end RYM didn't save us money on closing costs.
However, the ongoing support working with banks to create better product servicing was unexpected.
We'll also certainly make our money back between our investment and primary homes over the years and enjoy convenient products that improve the savings.
How has using the RYM strategy changed your life?
We would not have been able to afford the payments for our current house on a 30-year mortgage, even using all of our seller net as a down payment.
Now, with paycheck parking, we put 10% down and easily afford the payment. We invested the rest of the money into life insurance and real estate. We feel like we're finally able to be serious investors, being out of the mortgage and 401(k) rat race.
What advice would you give to a homeowner considering trying the RYM strategy?
Just pay for it! It makes itself back many times over.
Most people we tell about RYM just want us to share the bank list, not understanding the other value of joining the group. Yet just saving the closing costs on one refinance are worth joining the group instead.
So far, they want to watch us first. They're still skittish, so we are sharing our statement summaries each month to show how it works despite the rocky slow start right now.
Elliot Hallum, a Williamson county realtor, used to be the guy slaving away to pay off his mortgage (like most people) with dreams to own some investment properties; now he has access to cash for those promising real estate deals.
No, he didn’t win the lottery or increase his income, he simply learned how to better use his current assets to FIGHT INTEREST and pay off his principle more quickly.
Let’s take a look at what changed for Elliot:
The Big “Death Pledge” Problem:
Elliot Hallum used to be an average guy with a standard 30-year mortgage, working himself to the bone to pay it off.
Unfortunately, this debt that hundreds of millions of Americans have to incur was keeping Elliot from pursuing his true passion:
Elliot always had a knack for finding killer real estate deals...trouble was, he never had the liquidity to capitalize on them HIMSELF. He always had to pass the opportunity along to “the guys with the big bucks.”
This really bothered Elliot. He studied the numbers and knew his income wasn’t the problem...it was his MORTGAGE:
The reason banks say these are “the norm” is because they make a TON of money from mortgages...that’s why they push them so hard.
Luckily, Elliot decided to investigate other options...and that’s when he learned about Home Equity Lines Of Credit (HELOCs for short)
A HELOC is a less-well known type of financial product that allows you to utilize the full amount of your assets to FIGHT INTEREST and pay off larger chunks of your home’s principle QUICKLY.
It’s what the wealthy have been using for YEARS and the tool Elliot used to shorten his payoff period from 27 years.
So why haven’t you heard of them?
Because banks don’t make money from them. Banks are in the business of making money so they sell the most profitable product...which results in you paying nearly twice the value of your home.
They neglect to mention the products that are best for YOU, and that’s why we created Replace Your Mortgage.
In fact, here is a video of Elliot talking about the transition and his succes story.
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Who We Are:
Hi there, I’m Michael Lush and I’m a recovering mortgage broker who spent 15 years pushing standard mortgages.
I say “recovering” because three years ago I stumbled across HELOCs and, after going through the process myself, started teaching others like Elliot how to use HELOCs to pay off their homes in 5-7 years.
Since then, my partner David and I have helped over 525 people navigate the HELOC process and accelerate their payoff period.
How We Can Help:
Most people are skeptical when first hearing about us because "it's not what everyone else is doing."
Elliot was the same way and that’s why we told him to start small: We told him to get a copy of our FREE ebook to learn more about how the process works.
Once he saw that what we talk about is MATH, NOT MAGIC, he decided to make the leap.
Now he can use all of the money that would have gone towards interest payments on a standard mortgage to doing the things he really wants...like investing in HIS OWN REAL ESTATE DEALS:
“Right now, I'm maintaining a sizable amount of liquidity in the HELOC so that when a great opportunity arises I can pay cash and close quickly.
I'm not limited to properties that can get financing. That gives me an advantage over other investors.”
So if you're serious about finding a way to acquire more real estate investment deals (and not lining a bank's pockets by paying interest on your mortgage), subscribe below to get your free copy of our ebook.
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Rates are looking good so you decide that you want to refinance your home. But do you refinance to a HELOC or a traditional mortgage? Let's talk about it.
Hey gang, Michael Lush. We recently got a question from a subscriber. "Should we refinance or get a Home Equity Line Of Credit?" Both. See, a lot of folks think that a Home Equity Line Of Credit again, is a second mortgage above and beyond your current mortgage.
What I would suggest you to do, is refinance your current mortgage into a Home Equity Line Of Credit. Instead of getting two loans, you're actually getting one. You're replacing your current mortgage for a Home Equity Line Of Credit.
That way, you've got the proper tool to put all of your money into each month, pull money out as you need it to pay for bills, and you're going to accelerate that and pay it off, on average, in five to seven years. Way easier than having a traditional mortgage. If you like this video, again, "like" below, and subscribe to our channel. Thank care. God Bless. Thanks for watching the video.
So you have done your research and found out the shocking truth that using a home equity line of credit (heloc) will allow you to pay off your home faster. Good for you. The problem is you just purchased a home so how long do you have to wait before you can get into a HELO? The answer really might surprise you.
Hey, gang. Michael Lush. We got a question of ... What was the question again?
Recently, got a question is how long does one have to wait in order to refinance into a home equity line of credit? There's actually 3 parts to that answer, or actually 3 answers. One is you can actually buy a home using a home equity line of credit, so you don't have to wait.
Quite frankly, on a traditional mortgage, I don't know if you realized this, but they have what's called a truth in lending disclosure that basically tells you that you're buying your house at the end of 30 years, but, by the way, we're going to buy the bank one as well. Thank you very much. Instead of using a traditional mortgage, you can actually purchase a home using a home equity line of credit.
A home equity line of credit is a bank product, it's not a government loan. Each bank and credit union has their own policies and terms and appetite for risk. Although some may allow you to purchase using a home equity line of credit, others may force you to wait 6 months to be in the home, and owner of record for 6 months before you actually refinance into a home equity line of credit. That's typically the worst case scenario.
Actually, I've talked to a couple of banks that don't have any seizing requirement, but they don't allow purchase. Now, what this means is you don't have to be owner of record on your home for any period of time in order to qualify for a home equity line of credit. One would think, "Okay. Well. That's great. Now, I can purchase a home using a home equity line of credit since the bank doesn't have any seizing requirements." Some banks actually have a policy that don't allow you to buy a home using a home equity line of credit.
I've asked this question to numerous bankers and underwriters, "What you're telling me is that I could buy a home using a traditional mortgage on Friday, and then turn around on Monday, refinance to a home equity line of credit?" The answer is yes, unfortunately.
Again, this philosophy and strategy that we teach just hasn't caught up to underwriters and bankers. We can still use it, but it just means you can't buy a home with their policy, but you can refinance it the next day. Doesn't make any sense, I know.