Are you looking for ways to pay off your house fast? Is velocity banking the first strategy that comes to your mind? If so, there is nothing to worry about since you’re not alone. Actually, many people are motivated to pay off their house as quickly as possible and it is completely normal.
However, this decision could end up leaving you vulnerable to some pretty big unintended consequences. This is mainly the case when you happen to be emotionally motivated. After all, everyone wants to save time and interest. Either way, this does not always have to be the case since you can get through it provided you understand how to handle everything.
You might be wondering what velocity bank is all about. In a nutshell, it is a strategy that allows individuals to use their line of credit as their primary account and use lumps to pay off a loan, usually a mortgage. This is made possible since you get to use your cash flow and extra money to cover your expenses while still going towards paying off your mortgage.
In most cases, the velocity banking strategy makes use of a Home Equity Line of Credit (HELOC). But why is this even so in the first place? Well, HELOC serves as your primary expense account rather than a checking account. This, in turn, eliminates the need for a savings account since all your free cash flow goes towards the mortgage via the HELOC.
Although this strategy works perfectly on paper, there are so many factors that are likely to change your actual results along the way. No wonder you should never rush into using this strategy without having a clear insight into what you are signing up for. The good news is you can leverage the internet and access every piece of information you may need to know regarding velocity bank without going through a lot.
It is then that you stand a chance of reaping the numerous benefits it offers. So, what are you waiting for before you get started!