hello and welcome back to my channel I am Christy van with fantastic finances and on this channel I teach velocity banking today we are going to be discussing how the banks are sucking the life out of your finances and how you can stop it you have a choice after you see this video today you have a choice you are choosing to throw your money out the window if you continue doing what I'm about to speak on in this video it's your choice we need to wake up and we need to take control of our money when we are sitting back letting stuff like this happen it's our fault if you are broke if you are living paycheck to paycheck maybe it's because you are in this situation right here this is a real life scenario I worked with a couple today that is in this exact scenario I want to share it with you because I want you to see how angering it is that you are not aware of the different tool tools that's available at the bank to help you come out of debt you instead have been trained to make payments you have been trained to believe mortgages are your way to buying your home I want to show you a different way I hope that you have ears to hear and that you will pay attention to how much money this couple is throwing out the window if they allow this to happen to them they currently have an income of 5200 $0000 a month they have $4,100 in expenses coming out every month this includes their home this includes their food their gas all their living expenses so after all of their expenses come out they are left with a cash flow of $1,100 per month now let's go over here they have purchased a home the purchase price was $150,000 they put down $115,000 which left them a balance of $135,000 then of of course they got a mortgage because that's what they tell us to do you want a home get a mortgage you can buy your home you can have little bitty baby payments for 30 years let's see where that's going to get them so they started their payments this month December 1st 2023 so the mortgage is a 30-year mortgage at 7. 75% guys if you're in these ridiculous interest rates I don't care if it was going on in the 80s or not it's going on right now if you didn't have the knowledge in the 1980s and you went ahead and you paid this ridiculous interest then I'm sorry it was only because you weren't taught the truth this video is going to teach you the truth about what that 7. 75 interest rate means to you I want everybody that has a mortgage to go get your contract documents right now I wait go to the closing document section look in your closing document section of the contract you're going to see where it says your interest rate I don't care if it's 2% or 8% then look in the small print below your interest rate it's going to say in capital letters this is not your interest rate now go down to the next line you're going to see another line that says this is your actual interest rate and if you're at 3% it's going to approximately 60% this 7.
75% that's not 7. 75% take that times 2 and then add a zero they're going to be paying over 150% in interest on this mortgage look at your mortgage papers and see if I'm telling the truth this couple is going to have a monthly payment of $967 20116 in month one they're going to pay $871 187 in interest alone how much actually goes towards the house they just bought $952 are you seeing where I'm going with this month two balance 13495 monthly payment 9676 interest $871 126 principal payment what actually went to the house that they're paying for $95 90 how long do you think it's going to take them to pay this home off paying these small little payments towards their actual principal amount 30 years right so I have Carl's mortgage calculator up and you're going to see it here this is going to show you that the actual interest that they're going to pay throughout this 30 years on this mortgage is going to be $213,700 let's teach you a way that you can beat that and be excited to pay for your home not paying for the bank's home first when you're paying this much interest in every single payment that you're making you might as well drive down the street roll your window down and throw $871 out the window going down the street you know what at least it will help some people on the street that need the money this is going to the banks this is just you making them richer how can you stop that what if you took a $10,000 chunk and put upon this mortgage and I know some of you naysayers out there are saying well who's got $10,000 well guess what there are things called lines of credit at the bank and you can use the lines of credit any way you want to most banks have them available most Credit Unions have them available check it out see if you can't find you a line of credit to do what you are getting ready to see here this is not magic this is just math so we talked about getting a $10,000 chunk and paying it onto this mortgage principal we also discussed that they have $1100 in cash flow every month so when they get the $110,000 line of credit you can use that to put all of your income in and pull all of your expenses out so this is how that will look you have a balance of $10,000 on the line of credit that you got from the bank or credit union your income goes in when the income goes into this line of credit it satisfied any payment that was due that month you can also pay your expenses straight out of this account so when the income goes in in month one the expenses come out the balance comes down to $8,900 now remember the expenses are the home and all of the eling expenses the food the Gas Utilities whatever it is that they have to pay every single month can come out of this line of credit now we have to figure in some interest here so I figured this line of credit at a high of 14 14% remember what this was 7.
