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What Is A First Position Home Equity Line Of Credit? | What Is An All In One Mortgage? - YouTube
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so what is an all-in mortgage or a first
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position HELOC we're gonna talk about
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that and break it down really quick for
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you in today's training hey everyone
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it's Mike Adams and on this channel we
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empower individuals to achieve freedom
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through improved financial literacy if
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it's your first time here make sure to
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click subscribe and click the bell so
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that way you get notified on any of any
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and all of our future trainings so in
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this video guys we're just gonna answer
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a fast question here about what is an
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all-in mortgage or what's also referred
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to as a first position home equity line
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of credit and really what that is okay
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and you know and really what most people
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are used to is a traditional 30-year
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mortgage which is a loan okay and again
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what we know about loans
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is that you have what's called a fixed
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payment where every single month part of
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that payment is principal part of that
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payment is interest right and over the
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life of that loan you're gonna and
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you're gonna make those payments over
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typically 30 years okay and now you're
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gonna pay a bunch of money in interest
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to the banks okay good so I'm if you I
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have not learned about loans and how
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amortized repayment schedules work and
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it's the same on auto loans student
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loans mortgage loans okay and the other
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your personal loans that you might have
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out there if they are and if they have
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an amortized repayment schedule you're
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gonna paying a lot of money and interest
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so definitely click the links below this
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video I'll link to some videos either in
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the cards or at the end or below this
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video with some more information make
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sure you know all about loans and really
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the difference between lines of credit
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and loans but you see the way a first
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position HELOC or what again what is
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called an all-in-one mortgage how that
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works is that's actually not alone okay
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what it is is it is a revolving line of
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credit
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okay so again a home equity line of
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credit is a line of credit and what we
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like about lines of credit is they are
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revolving okay one of the key
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differences between liens and loans is
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that with a loan
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it is one way okay so you can send money
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into your loan but you can never take
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money back out okay so you can send an
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extra principal payments if you want to
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on a loan but you can never go ahead and
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reuse the loan okay they give you the
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lump sum at the beginning and you can
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just send payments in that's it with a
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line of credit you can put money into it
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you can make payments into a line of
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credit but then you can reuse the line
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of credit so it is revolving it gives us
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always gives us access to our capital
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and access to our principal whenever we
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want to send an extra principal payments
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it allows us to maintain access to that
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so the cool thing about these all-in-one
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mortgages or first position he locks is
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that it does actually allow you to get
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all of your money working for you if
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you're familiar with the velocity
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banking strategy and again if you're not
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make sure to click the links but we'll
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put some links below this video or up
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here in the cards so that way you can
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get up to speed on velocity banking but
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it's a powerful powerful technique where
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you are maximizing all of your cash flow
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and instead of using the bank savings
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account which truly is a liability again
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we talked about that in other videos on
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this channel as well bank savings
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accounts okay so when you're using a
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first position HELOC or an all-in-one
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mortgage the idea is to use that key
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lock as your new checking account or all
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of your money every single month every
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dime of your income is gonna go into
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okay that all in one mortgage because
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again you always have access to it so if
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your income is $5,000 sort of net income
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every month you can pay that down in
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that immediately creates okay available
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credit on that HELOC okay on my first
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position he lager on that all-in-one
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mortgage so you can feel comfortable
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putting all of your money in there
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knowing that if something happens you
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can always write a check off that first
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position key lock or off that all-in-one
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mortgage okay in order to gain access to
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your capital okay and so it's very
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powerful way to rapidly pay down your
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debt and it's much faster way I'm
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utilizing the first position he log
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versus a traditional loan okay
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traditional loan you know it's gonna
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take 30 years to pay off a mortgage
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okay in this mortgage here at 200,000 at
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6% you know it seems you're gonna pay
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almost two hundred thirty one thousand
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dollars worth of total interest over the
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life of this law and it's even again
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taking thirty years to pay it off if you
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were to convert this if you were to
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refinance this mortgage into an
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all-in-one mortgage or a first position
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home equity line of credit okay and then
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again apply the velocity baking strategy
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where all of your money is going in okay
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and all of our expenses hit the line all
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your money's going in and you have
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positive cash flow
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okay don't even consider this strategy
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if you don't have positive cash flow but
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if you have positive cash flow in an
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hour normal illustration we use a two
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thousand dollar cash flow number every
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month the balance on the line of credit
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will go down right by your positive cash
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flow number okay every single month and
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so through utilizing a first position
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HELOC instead of a traditional mortgage
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you could go from this where you're
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gonna pay two hundred thirty one grand
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worth of interest to the bank in order
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to pay off the debt on your house you
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could go from that to this to this right
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here we're on a six percent HELOC here
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with all of your capital going into that
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line of credit you're now able to
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eliminate this thirty-year mortgage the
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same two hundred thousand dollar debt
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okay by leveraging this vehicle instead
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of a 30-year loan we were able to pay
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off this debt in about seventy six
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months okay you're able to save yourself
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almost a hundred and ninety thousand
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dollars worth of interest that would
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normally just go to the big banks and if
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we're talking about 190 grand that's a
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hundred ninety grand that you're putting
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back in your pocket into your retirement
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or into your business so first position
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he locks and all-in-one mortgages are
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definitely something that we like if you
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are interested in the fastest ways to
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rapidly pay down the debt if you're
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interested in saying you know look I
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want to apply my income and apply my
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cash flow to eliminate my debt here with
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this new mortgage a first position HELOC
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or an all-in-one mortgage might be a
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great
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lucien to allow you to rapidly pay off
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your debt but yet still give you the
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security of having access to the
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leverage one of the cool things about
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this is you know let's say five years
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down the line you know you've been
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putting in all of your income but then
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something big happens and you have some
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kind of emergency you have access to all
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of the extra all of the extra principle
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that you put into this all-day store
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cash flow that you put into this you
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have access to it in the form of
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leverage in that line so if something
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ever did happen you could always write
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yourself a check or draw up the line and
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re access your money so a very cool
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awesome way and a fantastic tool that
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allows you to pay down your debt much
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much quicker and save a boatload of
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money and interest so there you go guys
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that's what a first position HELOC is or
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what is commonly referred to as an
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all-in-one mortgage definitely something
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that we'd like and definitely a great
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tool for you to use if you're interested
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in rapidly paying off your mortgage
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if you found value in training guys make
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sure to give it a comment give it a like
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below I will see you in the next video
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[Music]
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