30 YEARS or 5.2 YEARS? 🏠 This client is purchasing a $500,000 home and is choosing to look beyond the traditional 30-year mortgage. Our first-lien HELOC analysis projects: 🏠 5.2-year payoff 💰 $428,807 in projected interest savings 📆 62 payments vs. 360 The HELOC itself isn't what creates these results. Positive cash flow + disciplined spending + the way that cash flow is applied against the balance are what make the strategy work. Stop automatically assuming the mortgage you've always been taught to use is the only option. Run the numbers first. DM me “PURCHASE” if you're buying a home and want us to analyze what a first-lien HELOC could look like for you. #FirstLienHELOC #HELOC #HomeBuying #creatorsearchinsights #homeowner

Why would you ever choose a 30 year fixed mortgage over using a first lane HELOC to purchase a new home? This client's ahead of the game. Most fur clients that reach out to us already own a property, but this guy is one step ahead of you. He's using a first lane HELOC to look at financing his new purchase. And when we ran his numbers, we projected a 5.2 year payoff with his mortgage, instead of taking a 30 year fixed at 6%. The first lane HELOC is a crazy strategy that most people think it's too good to be true, why are more people doing it, and they doubt it. But it's a very simple idea. You use a line of credit to purchase your home simply because you use the HELOC as your checking account. Every deposit you make into this account reduces your principal balance dollar for dollar. It's a simple interest mortgage and you have access to the line of credit for 30 years. This is exactly how his loan will break down. It's a $500,000 purchase, he'll put 10% down, so the $450,000 will be the HELOC that we're financing the property with. Instead of taking a 30 year fixed mortgage at 6%, we're going to use the HELOC as the financing instrument here. So this is where a lot of you get confused because you hear a HELOC and you ignore the fact that I said a first lane HELOC you automatically assume it's a second mortgage, and then you ask, well, how can you get a HELOC with no equity? The HELOC is the only mortgage on your house. That $450,000 balance that would have been a traditional mortgage is now your HELOC. That is it. This guy makes good money between him and his wife. They're taking home about 12,000 a month. They've got $8,000 in their checking account that they're going to reallocate into this HELOC. And after they pay all the bills and expenses and we're actually paying off a vehicle at the same time, they project to have about $6,000 left over after everything is accounted for investments, groceries, food, entertainment, you name it. So instead of taking this 30 year fixed mortgage at 6% because this is what the banks want you to do, we can pay off a home at $450,000 balance in 62 months. It'll save him $428,000 in interest. And as much as a lot of you complain about the interest rate being higher, it has no bearing on this client because in order for his HELOC to equate to the same interest cost as the 30 year fixed mortgage, his HELOC would have to average 19%. So if you're smart with your money and your discipline, the HELOC could be an amazing tool to help you get out of debt faster without changing your lifestyle. Stop signing up for 30 year fixed mortgages because that's what your mom, that's what your realtor and all your friends are telling you to do. That'll keep you in debt longer. The HELOC will allow you to be the quarterback to your mortgage, pay your home off faster without changing your lifestyle and start using your line of credit to make you rich. You can buy more real estate, you can put more money into investments, you can buy a business, you can do all the things that you have dreams and aspirations to do sooner and stay in debt for 30 years.