author of the book, fire your boss and in this video I want to show you guys how

you can pay off your mortgage within five to seven years. Now, Before I go on

with the breakdown and the explanation of the strategy, I want to make sure you

guys get some disclaimer so that you guys are protected and then I am

protected as well so real quick I am NOT an attorney I am NOT a CPA nor am i a

financial planner so anything that I say or mentions of legal tax or financial

planning advice please don't take it as an advice but rather as a suggestion

based on my own experience and my own understanding of the strategy now this

is gonna be also a short 15 less than 15 minute video so make sure don't try this

alone okay if you guys have any questions if you guys any need any help

if you guys need some personal help I'm gonna leave a link down below at the end

of this video I'm gonna give you a link to go to to see further explanation and

I'm also gonna give you guys a little more breakdown in that in the link that

I'll send you to at the end this video so make sure you guys understand that I

get it there's other videos that will show you this strategy but remember it's

really crucial that you get some help a third party or a third pair of eyes sort

of speak to help you guys use the strategy so the purpose of this video is

just give you an overview an idea a possibility on how you can implement a

strategy in your own situation so that you don't have to pay you know a huge

sum of interest and spend all the time the world trying to pay off your

mortgage so let me go ahead and flip the camera around and I'm gonna show you

guys using a marker and piece of paper give you some illustrations and how

these how the strategy will actually work all right guys I'm gonna flip the

camera around so I'm gonna show you guys to break down and and these explanation

as far as how this strategy works now before I get to the actual strategy I

want to show you guys how and why mortgages work right and why I think

they are inefficient so I'm gonna break down the mortgages in a chart for you in

relation to interest versus principle now for those don't know what principal

is principal is the actual loan balance so if you have a hundred thousand dollar

loan you're bound your your principle

balances $100,000 get it interest is is the expense that you pay to use the

bank's money okay that's basically bank's profit so I'm going to draw the

chart for you here the x-coordinate it is time so we're

gonna label with zero months this is gonna be 30 years and right between is

15 years okay this is gonna be your monthly payment amount monthly payment

so let's say we're gonna give it a give a good example here a hundred thousand

dollar loan okay five percent interest

at 30 years a ssin it's gonna be just around about four or four hundred

dollars right and guys don't quote me here I don't have the amortization

calculator in front of me but based on my experience it's around four hundred

bucks for principal and an interest of all so with that four hundred dollars in

mind this curve here is gonna be your interest payment and this curve here is

going to be your principal balance so if you guys notice that first you know the

first half fifteen years bulk of your hundred payment is actually

interest payments right in the early months very little is gain taken out of

your actual hundred thousand dollar principal balance so in that four

hundred dollars most people think that if we make that four hundred payment our

loan is going back down to ninety nine thousand and six hundred bucks right

guys that is not the case in fact maybe like fifty hundred bucks if not even

less are gonna be the actual principal payment that's gonna go and lower the

the balance from a hundred thousand to you know the principal payment whatever

we're subtracting here so do you guys see how the first fifteen years you guys

are actually not making much progress as far as paying off your loan in fact the

first ten to fifteen years this is where the banks make money thanks

profit does that make sense guys so what's really interesting and for me

it's kind of entertaining most bankers will come to you and say hey you know

it's been about 10 years how would you like to refinance your mortgage for a

lower payment how would you like to pay $350 instead of $400 right most people

would say wow you know I'm saving $50 that's actually a pretty good thing but

what sucks is that and what they don't tell you is that we're basically

resetting our clock back to zero months and we're paying all of this interests

all over again kind of sucks isn't it right we're actually paying more

interest by refinancing by resetting a clock back to zero right because if we

did a refinance and continues and paid to 15 16 17 18 and so on we're actually

gonna be making more that principal payment and we're actually gonna be

doing much better in our progress as far as paying off our our principal balance

now what's really important is that this is something that you should know if you

guys are taking notes or if you guys have pen and paper in front of you the

lower the principal balance right as the principal balance gets lowered so will

be interest right I'm a huge Star Wars fan so I'm gonna make this reference if

you if you destroy the shield generator the Death Star is open to being a you

know vulnerable I know guys I'm a geek I'm in there I wanna that's the best

reference an analogy can give you so kill the principal and you'll also kill

the interests too so it's really important that we take the principal

balance down so that we're not paying interests does that make sense so that's

one of the pillars or I should say the core kind of supporting you know

methodology to making this strategy work okay now the other ins illustration on a

hundred thousand are alone at five percent interest

okay I know I can't spell here 30-year mortgage EMAS ation most people think

five percent interest is not bad okay but little do people know that actually

will amortize and will become compounded to actually be coming around 80,000 to

$100,000

on interest alone so on that hundred thousand dollar loan that's the

principal balance on a 30-year Bogey's 30-year amortization five percent

interest we're actually paying hundred thousand dollar interest alone plus our

original loan amount is gonna be around one hundred eighty thousand to two

hundred thousand dollars we paid to the bank now guys if we're gonna pay her

thousand dollar interest we just bought a bank another house right we got a

house and they got a house so you know you guys can see how mortgages kind of

suck doesn't it right we're paying a lot of interest

take so long 30 years that's like you know that's that feels like forever it

really does right I'm actually scared that some of these banks are coming out

with fifty realization for you know the pseudo pseudo loans that is crazy right

that is insane that's ludicrous this shouldn't be the case and that there has

to be a better way in paying off our property there has to be a better way to

buy houses without paying 100 percent interest to the bank there is there is a

methodology there is a strategy that I'm gonna show you and this is why you're

watching the video right to pay off your mortgage faster and you guys probably

already know this right this is all gonna be in what's called Truth in

Lending statement banks will give you this and though they won't tell you the

truth and how mortgages work now there's another debt instrument that

that I like to use to pay off your mortgage way quicker and with this

strategy we're gonna accomplish are these these are the objectives or I

should say the overall concept overall finished touches as far as how the

strategy work so this strategy is called velocity banking what we're doing is

we're we're accelerating how our debt is being paid and it is known that about

sixty six percent interest savings with this strategy we've got about sixty six

percent of time saving as well

and it's something some cases 5 to 7 years of total payment amount and we're

gonna keep the same amount of expenses alright we don't have to incur more more

loss we're not paying a penny more on the mortgage trust me

and same amount of income so I'm not gonna tell you to go get a better job

not gonna go tell you - you know skimp and save right save and save every

single penny right I'm not gonna tell you to go clip coupons guys what I'm

telling you here what this strategy will help you is still keep the expense the

same still keep the income the same same way but we're saving 66% an interest and

66% on time of of the payment period cool and some of you guys might be

saying this sounds way too good to be true this has to be some sort of scam

right or something guys may say this is too risky this is two different guys I'm

gonna show you the overall general concept as far as how this work and the

math behind it now this is the only gonna be a short video you're not gonna

get the full understanding I get it most of you guys want that's what I'm gonna

I'm gonna share a link at the end of this video on on a live example I'm

gonna actually show you a spreadsheet an Excel spreadsheet and give you guys the

actual breakdown as far as how the strategy will work in numbers but for

now I'm giving you guys the concept so I'm gonna introduce you guys a new debt

instrument a new way I knew I should say a revolution right but this has this

actually has been around for a little bit and most people don't know it's

called home equity line of credit

also known as a HELOC now the banks have been selling this product for about 15

17 years it's been around for a little bit but the reason why bankers don't

tell you about this instrument is because remember huh you remember our

illustration with this you know they want you to make you know all this crazy

they want you to actually pay right where to go

I'm trying to give you guys the illustration again they want you to pay

a hundred percent right they want you to pay this amount interest they don't want

you to save interest it's not that's not their interests right that that's funny

that's not their interest right there that's that's not what they're after

they want you guys to make ton of interest payment so they can make money

even though the interest rate is gonna be variable and and it's gonna be higher

than a mortgage why those two things aren't gonna matter as much and it's

actually gonna save you more money this way okay I want to show you I know it's

a little backwards and it could be confusing I'm gonna show you guys number

one the distinction between a mortgage versus a HELOC here we go so lowest

mortgage versus a HELOC first of all key locks are open are open-ended and your

mortgage your mortgage broker slash banker will know this open-ended and

this is gonna be closed ended what that means is let's say for example you make

a payment of thousand dollars to the banks I'm gonna draw the best bank as

possible there you go right that money cannot be on a mortgage situation you

can't use that again right you can't use it okay but on a HELOC you make the

thousand dollar you made a thousand dollars on the HELOC principle payment

you're gonna be able to use that thousand dollars again does that make

sense guys so it look it works just like a credit card credit card you have a

limit and a home the whole nine yards here in the mortgage you're not you're

kind of stuck right you pay the thousand dollars that's it it goes to the

principal and interest the end on the HELOC you use thousand dollars you pay

it off again you use five hundred dollars pay it off right just like a

credit card now the next thing the distinction is that he locks the the the

interest is calculated and applied on average daily balance and what that

means is that every day so Monday let's say you have a hundred dollar balance on

Tuesday you have $90 balance and on Thursday

let's say you have $50 balance right so each day you bring down the daily

balance so well your interest go down someone who's really quick show you guys

how the average daily balance works let's say you have a hundred dollars

just like the Monday's example all right it's gonna be multiplied by the interest

rate so point zero seven get it and it's gonna be divided by 360 days it's the

commercial lending year and whatever that is is gonna be the average daily

interest right and that's gonna get applied every single day as long as you

have hundred dollar balance so let's say from Wednesday through Friday you have

hundred dollar balance from Wednesday through Wednesday through Friday

whatever this amount is getting applied each day but let's say from Wednesday to

Wednesday you had 100 bucks balance on Thursday you have 90 dollar balance well

guess what guys the next day this is not gonna be hundred bucks this is gonna be

ninety dollars so on Monday or I'm sorry Wednesday you may have had let's say I'm

trying to calculate here let's say five dollar interest well the next day

because the balance is lower Thursday not Tuesday we're going backwards here

Thursday you may have more like a third for dollar interest so you see how the

balance on a HELOC every day it matters okay the longer you have lower balance

the longer you'll have smaller amount of interest going out okay so this is the