So what's the difference between using our HELOC Strategy (Accelerated Banking Strategy) Versus just making Extra Principal Payments against the Mortgage? Well... there's a MASSIVE difference. Don't get us wrong here... You CAN save money and time by making extra payments to the mortgage but this has serious drawbacks to our modernday financial changes... So here it is... HELOC vs Extra Payments... ENJOY!

How to Pay Off Your Mortgage in 57 Years (on Average):    • How to pay off a 30 year home mortgag...  

If you watched our video on how to use a HELOC to pay off your mortgage, well... this is for you... ALL of YOU HATERS! JK... :)

But in all seriousness, I want to address this because this seems to be the #1 objection against our Accelerated Banking Strategy. Now, this strategy has many names depending on who is teaching it... Some call it the Velocity Banking, Mortgage Acceleration, Replace Your Mortgage, Pill Method, Debt Free Acceleration, Sweep Strategy, HELOC Strategy, etc...

So here's why I believe that the HELOC is a FAR superior method to paying off your mortgage than just making extra payments into the mortgage.

1. Liquidity Lockup

Whenever you make an extra payment into the mortgage as principal payment, yes... you are saving money and time by reducing the principal balance in the backend rather than the front end. BUT! when you do this, you lose liquidity. Liquidity basically means access to cash and free access to money. So in the future, if you absolutely need to use this extra money, you can't get the money back out from a mortgage unless you refinance. Now, some of you guys are saying that you have 6 months of savings... So that leads my rebuttal to....

2. Savings Vs. HELOC
My argument against 6 months of savings would be... Why not take the savings you have and dump it into the HELOC to reduce the daily balance WHILE still being able to access the cash when you need it. But while the cash is parked in your HELOC, you're essentially saving money and time... Think about it... You're probably earning 12% APY on your savings account... Which is VERY little... If you dump the same amount of money into the HELOC, you can potentially save 47% in interest that you're not having to pay because you're reducing the daily balance.

3. Access to Future Funds For Investments

With the HELOC, you now have accessible cash for future investment opportunities such as investment properties. My rule of thumb with debt is... Use it when you know with certainty that you could earn money. Especially an asset that creates a consistent flow of income every month. I do NOT condone using debt to buy a new boat or a vacation house that doesn't contribute to adding more income back into your life.

4. Double Income Utilization!

Double Income Utilization is a simple concept where you can use the entire amount of your income to reduce the balance of your HELOC... all the while you can access the same income to cover your expenses down the road!

Be sure to download our FREE HELOC Calculator to see for yourself... How much money you can potentially save using this strategy!
https://bit.ly/2WZUPpm


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The Kwak Brothers are millennial real estate investors who have acquired over 82 Units of Rental Units and have raised over $20,000,000 of capital for their real estate deals. They are based out of the Chicagoland area and they are dedicated to helping hardworking people become financially free real estate investor! They specialize in owner financing acquisition and raising capital. They are the creator of the FORCE Strategy (Find the deal, Owner Finance It, Raise the Capital, Cashflow It, and Expand your Financial Freedom)

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DISCLAIMER The suggestions, advice, and/or opinions that are given by Sam Kwak (The Kwak Brothers) are simply opinions. There are no guarantees of set outcomes. Listeners, guests, and attendees are advised to always consult with attorneys, accountants, and other licensed professionals when doing a real estate investment transaction. Listeners, guests, and attendees are to hold Sam Kwak, Novo Elite, Inc. and the Kwak Brothers brand harmless from any liabilities and claims. Not all deals will guarantee any profit or benefits. Listeners, guests, and attendees are to view and listen to all materials and contents furnished by the Kwak Brothers as a perspective based upon experience.