Utilizing a Home Equity Line of Credit, or HELOC, to pay a portage is a method known as “velocity banking.” Using the home equity line as a primary account and paying for your daily expenses, this strategy assists in paying down debt. It is also known as borrowing money to pay off another debt, to put it more simply. But did you know there is another, much more efficient method to utilize and make better decisions? A velocity banking calculator is a tool that can be used to pay off the mortgage’s principal after the primary account can be used to make the monthly payments.
Velocity Banking Strategy: What Is It?
To take advantage of velocity banking, a person must have the following:
- Possession of home equity
- Credit rating of at least 680
- A credit card used for daily costs
- Cash flow such that expenses are less than income
Even a small amount of equity in your home may be enough to qualify you for the application procedure. The more equity you have on the home line, the faster the process of paying off the mortgage will be.
Why use this and not the old-fashioned method?
Since it deals with financial concerns, the Velocity Banking Calculator may seem like a big word with many intricate steps. But in reality, it is merely a straightforward calculating procedure that can be used to comprehend the various facets of financial planning better. Accurate mathematical facts and numbers are crucial to the process. Several variables are at play, including how much of a home equity loan is appropriate, how to pay off the mortgage quickly, and how whole life insurance supports a long-term financial plan. All these and more can be done quickly using these calculators.
Which Velocity banking calculators are available?
The calculator’s only function is calculation, but it may also be used for many applications such as diversification, borrowing strategy, and financing illustration. Each has a distinct function and offers assistance in various ways. A few of them are listed below:
Diversification – Diversification will be helpful if there is a need to hunt for life insurance for a more extended period. This calculator assists in making recommendations on how to allocate the assets directly related to life insurance.
Borrowing Strategy – It would be both exhilarating and perplexing to imagine running your bank or being your banker. That is the advantage of using the banking calculator. You may design a borrowing or banking plan in this type of calculator, which aids in comprehending the long-term significance of life insurance.
Funding Illustrator – This calculator will make it easier to determine how much can be saved for emergencies and how much should go into the HELOC account to pay off your mortgage. It will also help provide information on the interest rate, remaining equity on the credit line, cash flow, and several other possibilities.
Remember to thoroughly examine the calculator’s features to utilize the program when you decide to purchase it. Many software options may also offer free trials; keep an eye out for them as they may be pretty helpful in getting to know the program before buying it.
The bottom line is if people wish to pay off their mortgages sooner than the actual duration and also want to look out for options to increase their cash flow, this software ought to be invested in. If you have an extra line of equity on your house with a good credit score, don’t wait–look out for the best software available.