How to pay off a 30 year home mortgage in 5-7 years



SUMMARY:
In the above video I reveal a powerful strategy that is practically available to all, but is known and fully understood by a very few. If one takes the time to learn and implement this method of eliminating debt, one may find themselves pleasantly surprised of how quickly their home mortgage, auto loans, student loans or business loans can be completely paid off.

In the video I will demonstrate how a banking strategy can be used to pay off a 30 year home mortgage in just 5-7 years without sending double payments to the bank or changing one’s current level of income.

RECAP OF THE VIDEO:
I start off by creating a scenario of a financial situation by taking an average household net income in the United States combined with some of the basic monthly expenses: home mortgage, minimum payment on a credit card, car payment and living expenses which include groceries, utilities, gym membership…

Once all expenses are identified and subtracted from the net monthly income it is important to understand the impact of cash flow, the difference between a loan and a line of credit, how the interest of a loan and a line of credit is calculated, and how monthly payments on a mortgage are dispersed between interest and principal paydown. To help demonstrate these differences I create tables and an amortization graph. As I go on to unveil the main differences I also identify the biggest reason why nowadays most homeowners are unable to payoff their home mortgages due to the unstrategic use of home refinancing.

By this point having had identified the difference between a loan and a line of credit I can reveal the benefits of utilizing a line of credit to pay off a home mortgage in 5-7 years. This is where I get into the banking strategy which incorporates an unaccustomed method of moving one’s entire monthly paycheck into a line of credit instead of the accustomed checkings and savings accounts. By adopting this method one can leverage a line of credit to free up cash flow, gain cash back rewards, build credit history and improve credit score, but the greatest leverage created is the thousands if not hundreds of thousands of dollars in interest savings.

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DISCLAIMER: I (Laura Pitkute) am not a financial advisor, real estate broker, a licensed mortgage broker, not a certified financial planner, not a licensed attorney, and not a certified public accountant, therefore please consult with a competent professional prior to engaging in any financial strategies. Not everyone will experience 100% success rate by using this strategy as it requires a commitment to keep applying this strategy over time until the desired result is achieved. I (Laura Pitkute) do not promise or guarantee any specific outcomes and/or results from the use of this strategy.

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24 Responses

  1. KRUNAL DOSHI says:

    I had worked for credit card companies before and I know what I am saying. You are absolutely correct about the cash advance. But do you know that cash advance is incurring interest on a daily basis and it is immediately from the day of transaction. And it is higher interest than a regular retail purchase. Moreover, on a credit card when you make a payment, the payment is always put towards the balance with the lowest rate of interest, and then the balance with a higher rate of interest is paid. And this is the exact reason why people get in credit card debts as when you make a minimum or higher than minimum payment the balance with a lower rate of interest is paid first and then the one with a higher rate of interest. Leading to snowballing the balance and then people getting into greater and greater debt. This can happen to people with retail purchase balance as well if they don't pay off the balance in full. But it is not as bad as a cash advance. You can get in a CC debt faster with Cash Advance than a retail purchase. And if you have a combination of both cash advance and retail purchase the CC companies always pay off the retail balance first as it incurs interest monthly where as the cash advance incurs interest daily and they can make more money on a cash advance balance than on retail purchase balance. This is the fact. Which either you are unaware of or just negligent. Here is an article explaining that
    https://www.investopedia.com/ask/answers/111414/how-does-interest-work-cash-advance-my-credit-card.asp

    Also after reading this article I found out that now it has changed and the balance with higher interest is paid first. But you still need to read the fine print. As it may still be not true for some credit cards. Even if it is true, still I the other video which you had made the with the excel sheet i saw that video and still I am not sure did you consider the loan interest + the CC interest and fees put together or just the CC interest?

    I am not discouraging what you said. As I myself had used a credit card balance transfer for my first ever loan, which was a car loan. I had used credit card to bring down my car loans working rate of interest from 18.25% to 5%. But I had a background experience in credit cards and I knew what I was doing. Moreover it takes a lot of discipline and finance management. I was a MBA student back then. Still, I had spent several hours in budgeting, forecasting all expenses and emergencies also had to consider buffer amount. I also was willing to take a risk. If anything beyond my calculations would occur then I had a back up plan so I would not get in greater debt. All this financial planning and financial discipline is needed. Can you imagine just for a $12,000 car. I had to do all this. And, You are asking a common person to follow your program without any knowledge of CC or financial background. This could lead to greater debt. The best advice was not to refinance after 4years.

  2. EJAY says:

    WOW your one smart cookie!!!

  3. Honolulu Window Cleaning says:

    Does this scenario only work when the line of credit is the same lender as your mortgage holder in other words your bank

  4. Alice Young says:

    Laura, although your information about how to pay a 30 year mortgage in 5 to 7 years sound interesting, your VISUAL written format is NOT is very poor. Humans absorb information better VISUALLY, therefore is my suggestion that you find a much better way of displaying information, perhaps a large blackboard for larger written information, the lighting on your site if not effective, also your written is so small is difficult to see. I am interested in watching and listening to the information, the writing is NOT visible. Please, find a BETTER way. Thank you!

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  6. kelvin scott says:

    versatile credit patchup boosted my credit score within a short period of time and removed student loan late payment off my credit report and finally I got $5,000 in paypal thru paypal flip they are incredible,you'll need to go visit their website they are the best team to solve any financial crisis you going thru right now all you have to do is type versatile credit patchup on google to contact them thru their website

  7. Richard Arsenault says:

    I'm glad you shared this with us thank you always wanted a break down strategy how to do something like this

  8. Hector Amador says:

    What about taxes of the 60k

  9. ronilo maganis says:

    At first I watch you, your very pretty then I listen to you. Wow! Great info.

  10. Jorge Mora says:

    Im a little confused, if i used 12k credit card to pay principal, now i would have a credit card to pay down and my regular bills

  11. KRUNAL DOSHI says:

    Worst math ever. First of all, you forgot about taxes. Second, credit card does not charge simple interest. It’s compound interest whereas home loan is simple interest. Moreover you cannot make car payments and home loan payments using credit card. Please straighten your knowledge about credit cards. You are leading people to get in debt and die in debt. This formula has a big flaw. I do agree with you about the vicious refinance cycle. But except that the entire formula is a disaster.

  12. Michael Matty says:

    BEST whiteboard penmanship EVER!!!

  13. Nar “Crypto Talkie Talk.” rator says:

    she look like a sweet girl but i see alpha in her eyes … this girl will jam you up .. ps your english is very good …. i buy with cash im past loans .. i skipped that part of finance ..

  14. ruff life says:

    So while u paying back the credit card, u stop paying for for mortgage?? Or u pay for mortgage AND credit card debt?

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  16. devon g says:

    Thank you so much I was just about to refinance your the best

  17. Hooman T says:

    200K average price is an old story, try 300K average home price now, Monthly mortgage : 2000 while wages the same , lets see how you calculate that .. good luck.

  18. Marie Fabelina says:

    Will this work on a loan that has a prepayment penalty clause? Or are all loans ok to prepay early? Do I need to speak to a lender to see if they have a prepayment penalty clause?
    I really like your video thanks.

  19. Kirri Verch says:

    I rang our bank and they do not accept a payment directly off the principle

  20. Sarah Graf says:

    I didn’t see anything coming out for taxes. Did I miss that?

  21. Carbonara Ranch says:

    Paying Bi-monthly is a no brainer that saves thousands. Not buying in 100% on borrowing on a line of credit to pay down principle. Thanks. Real estate 33 years..

  22. valous2 says:

    I wish i made 60 k per year, im at about half that and it the average for my state, we poor here in oklahoma

  23. Zorana Bunjicevic says:

    Wow, so simple and yet the whole time I was told to do opposite of that, even from non bank financial advisers

  24. Laura Pitko says:

    If you are wondering how to –
    1. Pay for your mortgage/student loan/car loan using a credit card?
    2. What happened to the credit card interest? Or
    3. Why not apply the $2K in cash directly towards the principal of the mortgage? Then watch my Q&A video for the answers: https://youtu.be/vwxaVwjxyZg

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