Have you considered taking advantage of what the velocity banking strategy can do to your mortgage payment. Maybe you deem it as the most viable way to get out off debt without pushing yourself to the limit? Fret not since many people are already using it for their mortgage or debt payment.
You might wonder what makes it worth following, yet there are many other remarkable ways to go about it hassle-free. By following the velocity banking strategy, you stand the chance of improving cashflow while reducing amortized interest. When you take out a line of credit, you have more monthly cash available to pay down your interest payments.
It doesn’t stop at that since velocity banking allows for smaller interest payments. As long as your choice of HELOCE uses simple interest and it is less than your mortgage, be rest assured you’ll have smaller interest payments to pay back each month. But if the interest on your HELOC exceeds that on your mortgage, it defeats the object of the process.
We can never conclude without mentioning the fact that variable interest rate risk is good. Some might argue that a variable interest rate risk on the line of credit you take out, or on your mortgage is a bad thing. But such people are merely guided by the base rate when setting fixed rates.
If you are more than willing to take the risk that interest rates may move up, you can probably find some remarkable deals on variable-rate line of credit and/or debt. Bear in mind you should never allow rate moves to catch you out in your cash flow calculations since it might prove costly in the long run.
What we are trying to imply is that one needs to be extra cautious for the velocity banking strategy to deliver the promised fruits. With everything followed to the letter, you will get out of debt and create a new level of peace and happiness in your life. Not to mention the sheer thought of attaining financial independence more quickly than anticipated.
