# HOW TO PAY OFF YOUR MORTGAGE IN 5-7 YEARS (Build Wealth & Live Debt Free!)

so in the next five minutes I'm gonna show you how you can pay off your entire mortgage free and clear in under six years by now you've probably heard that if you make a half a mortgage payment every two weeks by the end of a year you'll have a thirteenth mortgage payment that's applied to your mortgage which will actually condense your mortgage by somewhere around six to seven years what if I told you that you could actually have your entire mortgage paid off in under six years how would that sound imagine what you could do with all that money that you're paying toward interest to your lender every single month I'm gonna walk you through exactly how the math works in today's training and I do want to reassure you that everybody who attended today is going to get their very own copy of the cash flow cruncher spreadsheet that I'm using to demonstrate today's example to get that simply visit cash flow cruncher dot-com and enjoy using that as a gift from us to you now in today's example we're going to be looking at a national average mortgage amount of roughly 180 thousand dollars with a conservatively realistic interest rate of 5% this is amortized over a full 30 years which is the most common term and we're going to start this loan in January of 2018 now before we get to the solution let's take a close look at the problem with 960 6.28 cent principle and interest payments over the course of that 30-year term you as a borrower will end up paying almost a hundred and seventy thousand dollars worth of interest costs now hopefully that's enough to make you nauseous and want to do something better so in today's example we're going to demonstrate the power of using debt weapons if you're unfamiliar with the term debt weapons make sure you tune in to all the videos here on our youtube channel we go into great detail and we show case study after case study of how these examples can actually serve you today's example is going to be using a liquid account we can use anything from home equity lines of credit to unsecured lines of credit to accomplish this very result and this is based off of a $24,000 lump sum estimate now a $24,000 lump sum estimate is typical for our current coaching members to apply and we know that over the course of 12 months with proper cash flow calculations and management we could have this $24,000 lump sum that we borrowed paid back to the source to the debt weapon in just 12 months time at which point we can use the same tool over again to apply an additional twenty four thousand dollar amount you can see here with just the very first lump sum calculation applied we've prevented just under sixty five thousand dollars of that total interest amount and we know that again because this twenty four thousand dollars is paid off and very close to one year that we're gonna pay a very small amount of interest on this tool versus the interest that we saved on this mortgage in fact this twenty four thousand dollars will end up totaling somewhere in the neighborhood of one thousand dollars in interest versus the sixty four thousand eight ninety seven that we've saved in one year we can follow the exact same process again the second twenty four thousand dollar contribution to this mortgage has a one hundred and one thousand dollar impact on future interest prevented and we're going to follow this exact same process through the entire life of this loan you could see here the last payment paying this balance down to just under $1700 is going to be applied by December 1st of 2022 which is just five short years later the $24,000 is then paycheck parked against which is another term that we discussed in detail on our YouTube channel with a bunch of free content that you can enjoy that twenty four thousand dollars now being paid back with the contribution of this nine hundred and sixty-six dollar principle and interest payment that you no longer have to pay for your mortgage means this twenty four thousand instead of being paid off in twelve months will be paid off and closer to eight so you can see that in just five years eight months almost one hundred and forty five thousand dollars worth of total interest and just under three hundred total payments have been prevented off of this mortgage alright guys so you can obviously see the mathematical potential in just a very short video of what these debt weapons can do for you in order to get more examples in order to understand exactly how to get access to the debt weapons in order to understand who's providing them how they should be used properly how to qualify for them and how they might serve your individual circumstances the best thing to do is make sure you subscribe to the channel and become part of the notification squad which makes you a cash-flow or join the cash flow er community we'd love to have you also be sure to check out all the videos those are going to be a far more clearer explanation and far more expanded detail we also provide one free coaching session which can be found in the description below so be sure to check that out until we speak to you on on the phone in person or we see on the next video make it a great day today and take care

Ok. I don't follow? How so you pay the 24k off in a year? Do you still pay the monthly mortgage?

From where should I bring those $24000??

Why would you want to do this? All you are doing is locking up your money in a house, where it earns NOTHING and does no work for you.

Maybe I'm missing something here. If I invested $24,000 every year for 5.75 years and compounded it @ 8%, I'd have $180,000.

My loan amount would be down to $162,000. I could pay off the house and have $18,000 left over !!!!

I kind of rather spend those 24000 a year traveling the world or doing something interesting instead of using 5 years of my life just to buy a house

Just pay extra on you monthy mortgage people. This is a scam to pay more intrest/fees to a bank or loan companies.

Ask people who took out these types of loans you ( unlock your equity ) borrow against your home on a variable % rate.

People lost their homes and the loan officers and bankers made millions selling these debt tools to the masses.

So I can get a house for 0% down with my VA loan. if I had 25,000 in savings, would it be better to use it as a down payment and take out a line of credit? or put 0% down and use the 25,000 as described above each year (with my income re-supplying that amount) instead of taking out a HELOC.

Skip the drama in the beginning just get to the point dude ðŸ˜‰

I didnâ€™t get the part part in 3:50 where he says you donâ€™t have to pay the monthly payment no more, can someone explain please thanks

Thank you, thank you, thank you. That calculator really showed me how I could pay off my mortage in 6 years. I'm in California so homes are super expensive. I am thinking about the best way to make myself debt free. I am also looking at possibly getting a rental property or two. This showed me how doable that is.

What happens when next year a crash occurs and the bank freezes your heloc?

Excellent presentation; quick question; how is the $24K paid back? Is it from discretionary income? Look forward to playing with your excel calculator…

Our variable rate mortgage is going up, up, up…. I'm determined to pay it off in 2023 (our 15 yr of mortgage), in Canada.

I don''t get it.

The difference between just overpaying 24K spread over 12 months)vs borrowing it and paying it a the beginning of the year means a negligible saving on interest FOR THAT YEAR.

You are calculating interest over the full term of the mortgage but I am looking at the actual benefit offered by paying your (borrowed) lump of 24k upfront instead of just making overpayments to total 24K at the end of the year. You make huge savings in interest by over paying – not by paying you lump at the start of the year.

The only way I see this being beneficial is if your line of credit is significantly cheaper than your mortgage interest rate.

In The UK mortgage rate is 1.8% and credit line is potentially 0% on an interest free CC but even so I'd only save around Â£500 PA which when compared with the additional risk of having more debt seems not sensible.

I'll be really happy if someone can explain it another way because I feel like I'm missing how this could work and I really want it to!!

..am 9yrs. into a 30 yr. fixed @ 4% with a 125k balance.This strategy worthwhile for me at this stage? Like to get it paid in 4 years. Possible?… Thanks

How could I get in contact with you I want to ask questions if you donâ€™t mind

I've got a little under 140,000 left on my mortgage. Would I need as much as 24,000?

That is powerful! Thank you for t.dhe visual.

Ready to learn..

Hello, I Hope you have time to answer this question. Your debt weapons sound so simple according to your short video. But I have a question. When you add $24000 to your mortgage for the 1st initial payment, How do you payoff that $24000 in around 13 months, in order to do the same thing over and over till your mortgage is paid off? I have a Heloc, and only have a positive cashflow amount of $600.00 every month after all the bills are paid off each month. I am concerned $600.00 each month will not be enough to start paying off the initial payment of $24,000 from the Heloc. If $600.00 will be enough, I totally get and understand your method and strategy. You just keep doing it again and again until mortgage is paid off. I will contact my bank and find out what the monthly payment amount will be if I charge $24,000 to my Heloc. Thanks So Much

Three problems:

First, you forgot to mention that you are paying an additional $2054.58/month (assuming 5% rate, 12 month term) to repay the line of credit you are using to pay off the mortgage early, so… you know… you have to be able to pay that too;

Second, you forgot to add in the interest that you pay for each of those $24000 "debt weapons"… which, when added up over the timeline, amounts to just under $4000, putting your net interest saved at about $139,700 instead (still great!, but…);

Third, if you just paid the $2000 (rounding here because this is internet math) extra monthly towards the mortgage, instead of to pay down the line of credit, you'd pay off the loan over a slightly longer term (71 months instead of 63) but you'd save $231 in interest, and avoid having to pay two separate bills each month (and not have to worry about increasing interest rates — or the increased risk exposure the line of credit brings with it).

In short, if you have the extra $2K sitting around, just pay your mortgage off early yourself. Restructuring debt still leaves you with debt.

I have a mortgage of $572k amortized for the next 29 years. My monthly payment is $2550 as the interest rate is 3.35%. This is a variable mortgage.

Although the amortization period is long, I donâ€™t intend to keep living in this house after the next 3/4 years. I will probably shift to a bigger house in the suburbs.

Following your method, does it make sense for me to access my line of credit and pay that money (30k) towards the principal? The LoC rate for me is 9% and thatâ€™s why I am not sure if your strategy will work if I plan on selling the house in the next 3/4 years.

Your analysis on my case will be highly appreciated.

How do you pay back the $24k loans and still pay the mortgage payment every month without making more money?

How much equity do you have to have to get a heloc….I have the same question as someone here but no one ever answered. New construction and paying that down/off. Does it work the same way? What are the steps to take to accomplish this?

I don t get this….sound to me like putting a hole by digging another one

This methodology just doesn't make any sense. Considering that you would have to pay back the bank the entire 24K + Interest in one year (roughly 2.2K a month, assuming 10% interest), you rather simply start adding $2,000 a month to your mortgage payment. In other words, instead of paying $2,966 ($966 mortgage + $2000 extra payment), he's recommending you pay $3,166 ($966 mortgage + $2000 extra payment + $200 interest). In summary, this methodology makes the entire mortgage $200 more expensive a month (assuming 10% interest) because of the interest you'll have to pay over the new debt… Also, be carefull about potencial penalties if you pay your mortgage earlier.

After discussing this with other people, borrowing from one loan to pay another loan down is not a smart thing to do!! This video doesn't take into affect the interest on the loan that you borrowed from. It would be so much better to use your extra cash from each month to pay down the principle each month instead of paying extra un-needed interest somewhere else. Sorry….but I don't agree with that point in this video.

I'm trying to get onto your website but it won't let me in.

Me and my wife are planning on vying 200k – 300k mortgage . Does this method works on any amount of loan .

If you have multiple mortgages how do you determine which one to Attacked first

I don't have a mortgage yet (I'm using the advice on this channel to become credit-worthy first) but I'm using the time in between to learn about how to go about qualifying for a home loan. I also have a plan to learn the various types of debt weapons as well as have multiple streams of income so this information will be added to my strategy of financial freedom. Thank you, Matt!

if it sounds to good too be true….. assumptions are what get us in trouble….in order to pay $24k every year and reuse it again…hmmm…that means we must give 100% of our income to the personal line of credit….if someone can pay 24K a year..why not skip the middle man(personal credit line)and just add that amount(24k) to the principal EVERY YEAR

This is so exciting! I've wasted a lot of time paying the bank, but Im ready to knock it out. Im just uncertain of which debt weapon is the best to use for mortgage payoff. Im on the calendar for February 27th. Long way out so if anyone can suggest one before that session, that would be great.

I'm learning so much and this is just what I needed to move further faster! Thank you Matthew for the awesome trainings.

Wow that transition into your computer screen was wild! Haha

Debra Mclane

Love the videos, using your advise, heloc, paycheck parking, lump sum payments

VIPFinancialEd, running the calculations, if I simply make an additional principle-only payment of $2000 per month (instead of $24K every 12 months), I get the same results — without using a HELOC or Unsecured Line of Credit (and the additional interest that comes with those). Am I wrong? Please tell me I'm missing something because I really want to pay off my mortgage quickly.

I've been watching several of your videos explaining how to do this. Trying to fully understand this before I present the idea to my husband and try to convince him that taking on a second debt is in our best interest. Keep the information coming!

I'm buying a brand new house (new construction) for $179, 900. I'm assuming that I won't be able to get a HELOC without having equity. Is that correct? How long should I pay on the home before applying for the HELOC?

Who can tell me where the best place is to apply for a HELOC?

Wait I'm confused, isn't the lender going to put in a Prepayment fee? And if you do this will it effect the payoff statement? Unless you have a way around this I can see how it works but wouldn't the lenders be wary of this? I've been enjoying your videos but seems to good to be true as bankers seem intent on locking you in a 15-30yr Mortgage. Would be helpful if you could clarify this, sorry for long message lol

Why donâ€™t you just put $ 2,000 a month to word the principal every month.

Draw that out of savings/ liquid account Paycheck park it it that savings. That way you donâ€™t have a loan against you.

Hi Matthew… I am a debt weapon fan and subscriber. Quick question… what are your thoughts on this new video of a popular guy suggesting quick mortgage payoff is not the best idea in his opinion (he provided examples). https://www.youtube.com/watch?v=AJSCT51Rfws

Say what. I'm intrigued. Tell me more…