A better way to finance your home!
Call 949-383-7121 for a FREE Analysis
Call 949-383-7121 for a FREE Analysis
A better way to finance your home!
Call 949-383-7121 for a FREE Analysis
Please reach us at contact@themortgagefreedomplan.com if you cannot find an answer to your question. We typically respond within 24 hours.
Yes, if you have positive cash flow and follow the strategies we recommend. The timeline depends on your current loan balance, # of yrs remaining on that loan, interest rate, and available monthly cash flow (total income - total expenses) that gets consistently applied to principal. Our calculator shows most disciplined borrowers achieve payoff in 5-7 years.
We will run side by side amortization tables so you can see your actual numbers.
No, but better credit usually means a better rate on the HELOC. All borrowers must have at least a 680 score.
The First Lien HELOC does have a variable rate tied to the 1 yr treasury bill. However, the interest savings from this strategy often outweigh rate increases. When the strategy works and the household is successful, borrowers save more money with an 8% rate than they do by paying 4% on a traditional mortgage.
The First Lien HELOC has a 10 year draw period followed by a balloon payment or conversion to amortizing payments, typically over 20 years. Smart borrowers pay off the balance before this period or refinance into a new HELOC. With a refi, the lender will waive the lender closing costs.
As you make large payments into your HELOC in the early months and years, you are both paying down your principal balance AND building an ever growing emergency fund as the available cash in the HELOC continues to grow. So if a life change makes it difficult to follow the original strategy, you will be much better positioned to "weather the storm" than with your current mortgage. The First Lien HELOC comes with an Interest Only payment option which provides an extra safety cushion in the event you struggle to put as much as you intended into the loan. The further you get into the loan repayment, the interest only payment will be substantially lower than your fixed principal and interest payment from your 30 yr mortgage.
Absolutely not! It's actually not about the rate at all although the banks have us trained to think it is. It's about the total amount of interest you will pay over the term of the loan. As the side by side amortization tables will show, the Mortgage Freedom Plan strategy will almost always show dramatically lower total interest expense compared to your current low rate mortgage.
Cost factors that matter MORE than rate:
The quick answer is because we've all been brainwashed by the banks who offer 30 year mortgages that double or triple the TOTAL cost of the home over time!
The math is simple and the numbers don't lie.
Again, the side by side amortization tables will lay it out for you.
Traditional 30 yr mortgages are structured to maximize bank profits through:
First Lien HELOCs simply give you a fair shake by calculating interest on what you actually owe each day. With the Mortgage Freedom Plan strategy, the amount you owe is reducing faster
which has a big impact on the amount of interest you pay.
4. Not everyone qualifies
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