1. Let’s identify the problem
Interest in mortgage are calculated daily.
Only have one chance paying it monthly.
Unless it is a bi-weekly that saves you 7 years.
What happens is you are forced to pay once a
month.
The banks are charging daily interest and
compiled it for 30 days before you can make
the payments.
The interest you’re making are front loaded
which means you are paying mostly interest in
the beginning of your mortgage.
2. The mortgage account is a close end loan
meaning that once you make a payment, you
can not take it out.
The graph looks like this:
We want to change the way it is being done.
3. We will use the banks system against them.
It is legal to do and it only requires a complex
calculations that will examine every aspect of
your finances.
Everybody can do it. It’s really easy and I’ll
show you how’s its done.
And of course, depending on your unique
financial situation, your graph can look like this
4. If you continue to use that monthly mortgage
for this long, based on my example on the
website, you can save up to ______ by the
30th year comes.
Now, you do not only own a house with a
mortgage, but you could also have a house
that can fuel your retirement account.
That’s why they call it Real Estate because it is
a real asset building tool.
You just need to change the way you look at
money.
5. The Solution
We are going to use a very simple money
principles:
Savings
Checking
Mortgage
Credit Cards
6. Savings
Discretionary income are saved here for emergency
or unexpected expenses.
Discretionary income are what is left at the end of
the month from your income after you have paid all
your bills and expenses.
Checking
Direct deposit your income here.
Used to pay bills and expenses.
Credit Cards
Used to pay daily expenses.
Used to buy miscellaneous items.
Mortgage
This is your house loan.
You pay a set amount every month to the bank.
7. Once you received your paycheck, it goes
directly to your checking account as direct
deposit.
And for some of you, it stays there for a couple
of days.
8. Then you start paying your bills from your
checking account.
If there is anything left, we call it discretionary
income, we put it to our savings account.
9. We save the discretionary income so it is
available to pay for unexpected expenses,
emergencies, or for the large screen TV that
you’ve always wanted.
But we all hope that the money we put into the
savings account will be used for retirement.
But does it ever happens?
Now, how are we going to use the banks
system to our advantage?
We’ve already identified the tools that we need
Savings
Checking
Credit Cards
Mortgage
10. I want to add a very powerful tool.
It’s called a
Facilitating account or
Home Equity Line of Credit or
Financial Forecast Report account or
Any Savings account that can act like a Facilitating
account.
This account is the hybrid of all the other
accounts.
It is a combination of
Savings
Checking
Credit Cards
Mortgage
11. This account started in other countries like
Australia and Europe and just now slowly
coming in to America.
I’ve heard this program in 2006 and still, a lot
of people has not heard of this programs.
It is because the banks don’t want you to know
this!
If this sounds interesting to you, well
This is the time to pay more attention.
Because the next segment will be the
explanation on how it works.
12. The Technique
So, now you know that there is a hybrid
account that combines all the tools we’ve
identified
Let’s change the picture of your old graph
FROM
To this
13. You will need a Facilitating account which will
be your Hybrid account.
This could be a
Savings account
HELOC
PLOC
Any LOC
14. The best one to use is the HELOC
This HELOC will combine the power of your:
Checking
Savings
Mortgage
Credit Cards
Used to pay for daily expenses and or other bills like:
Insurance
Utilities
Telephone
Miscellaneous
Grace period of up to 28 days.
If you pay off the balance before the grace period
ends, there will be no interest charges made.
15. Ok, this is how it works.
This is your mortgage, you have all the money
owed waiting for you to release them/pay them
But the banks only give you one chance to pay
every month.
16. So let’s say that you made the complex
calculations and you’ve come up with a specific
amount of money to be used as a Floating
money.
In this case $5,000.
If you are using a HELOC, you don’t have to
come up with your own money. Use the banks
money to cancel interest on your first
mortgage.
See, this is the beauty of this Hybrid account
because you can open one up using your home
equity.
Remember, your house is called Real Estate.
Meaning that it has a real value and not an
imaginary value.
17. You can use that value to get money from the
bank and use it against them.
It’s not your money but it’s your real property
used as a collateral.
Now, what we have to do is fight the bank in
our own arena or our own capabilities.
Our own arena/capabilities is your $5,000
HELOC account and your income.
If you can get a higher HELOC the better.
But we don’t have to use anything above
$5,000 with this example regardless of how
much credit you acquire.
You can just leave it there for emergency. Use
it so you don’t have to keep a huge savings on
the side.
18. So, we are going to take money from the big
mortgage and put them into the HELOC.
MORTGAGE
HELOC
19. So, we are going to take money from the big
mortgage and put them into the HELOC.
MORTGAGE
HELOC
20. Once the small amount of mortgage is in our
arena/HELOC
We are going to start attacking that mortgage
with full power.
You see, our money is small compare to the
banks. BANKS
OURS
21. That’s why we have to break it down to smaller portions
so we can effectively attack them.
By doing this system, we are utilizing all our
tools very effectively.
If your HELOC has $5,000 credit limit, the system has to
try and maintain that available credit as high as possible.
HELOC
Thus, depositing our income and leaving our
discretionary income into the HELOC.
Now, we can cancel 6% of mortgage interest on the
amount that we have in there and still have the ability to
take some money out when we need it.
Remember, we are only going to use $5,000. No more,
maybe less.
22. Ok, now its time to pay some bills.
This process requires a sophisticated software
that will examine all your debts and all your
expenses versus your income to tailor a plan
that will best reduce the amount of interest
you will be paying.
It will strategically transfer a specific amount of
money from your cash account or Facilitating
account and pay off a specific debt that is
costing you the most.
HELOC
23. Once this process is accomplished, it will then
fuel the Facilitating account until the balance is
low enough that it will not cause the interest
being charge on the Facilitating account to be
counter productive in paying the interest that
is costing you the most.
HELOC
24. After this process, it will select and pay off the
next specific debt that is costing you the most.
HELOC
This will go over and over and pay one debt at
a time so you can use that payment from the
old debt to pay the next debt like a snowball
effect.
25. The more debt you can pay off, the bigger
snowball you can use to pay for the next debt
and the faster you’ll pay everything off.
26. You can do it yourself. The only problem is, it
requires a complex calculations on how much
you can pay on a specific debt. This ensures
that the money from the Facilitating account
that you are going to use to pay your debts will
not charge you more on interest than the debts
you are trying to pay off.
27. This system will not only pay off your
mortgage in 1/3 of the time, but all your debts
will be paid off one by one in a records time.
Let’s use our example from the webpage.
HELOC
$5,000
CREDIT
$4,700
LIMIT
HELOC with a credit balance of $5,000.
Currently, you’ve used $4,700.
28. As soon as you received your income from
Job
Rental income
From Savings
we are going to deposit that income towards
the Facilitating account.
29. This is what it looks like:
Started from
$4,700
1. Deposit $2,000 from Savings to Facilitating
account.
2. Facilitating account will have a new balance of
$2,700.
30. This process will occur until the balance is zero.
Full Credit
Limit of $5,000
Then the remaining balance will be available in
your checking or cash account.
31. Of course, we have to pay bills. So let’s see
how are we going to pay them.
Utility bill of $400.
Since we have money available on our
checking account, we will utilize it first.
We don’t have to pay interest on this account.
32. We are going to continue paying all our bills
until we exhausted our cash/checking account.
Then, we will borrow again from our
Facilitating account to pay the difference.
33.
34. More to teach:
Show when the car will be paid off.
Then show the 5 year balance on mortgage
Show the payment date of the mortgage.
Start talking about investments
Not so much of the interest.
Just talk about 5% interest.
Maybe a cash value life insurance while paying off the
mortgage so when something happens to you, your family
can just pay off all the debts that you will leave behind and
leave them with some inheritance.
Start a legacy for your family. If you don’t do it, no one
will. And your family will be known as renters or mortgage
owners.
I want to be called a mortgage free homeowner / Landlord.
Talk about dreams. Take them to the next level.