Many people want to quickly pay off their house to avoid paying excess interest decades down the line. One technique to achieve this rapid payoff is through Velocity Banking, where a home equity line of credit replaces a traditional mortgage, and can be paid off in under a decade. While this strategy has worked for some, it is also riskier due to variable interest rates and increased monthly payments. It’s best to do your research before diving into these burdensome financial endeavors.
- Velocity banking swaps a mortgage for a HELOC, which has higher and more variable interest rates.
- Hurrying to pay off your mortgage is a mistake because debt freedom shouldn’t be your main objective.
- It’s best not to store cash in home equity, but in specially designed whole life insurance.
“When it comes to your money, you deserve real answers so that you can make informed decisions.”