Using Your Home Equity as a Bank

— Slide 2: Using Your BLOC to Paydown Mortgage —
Paying Down Your Mortgage FAST!

Now Let's Get Serious

How about over the next year, go ahead and make $5,000 mortgage payments every time your BLOC balance falls below $1,000

Now let's see how much you can save if you managed your BLOC as follows:

BLOC Account
Starting Credit Line Balance: $60,000

Month
BLOC Activity
Advances from BLOC

Payments to BLOC

Balance Owned
Sep Beginning Balance     $2,794
Sep Total Activity $4000 $5362 $1,432
Oct Total w/ Mortgage Pay $9000 $5362 $5,070
Nov Total Activity $4000 $5362 $3,708
Dec Total Activity $4000 $5362 $2,346
Jan Total Activity $4000 $5362 $984
Feb Total w/ Mortgage Pay $9000 $5362 $4,622
Mar Total Activity $4000 $5362 $3,260
Apr Total Activity $4000 $5362 $1,898
May Total Activity $4000 $5362 $536
Jun Total w/ Mortgage Pay $9000 $5362 $4,174
Jul Total Activity $4000 $5362 $2,812
Aug Total Activity $4000 $5362 $1,450
Year Activity $63,000 $64,344 $1,450
So What Do You Have

By making the four $5,000 consecutive payments on your mortgage balance, and using yousr discretionary income to keep your BLOC balance low, you would see the approximate numbers:

Please Note: these numbers are assumptions based on discretionary income remaining fixed. A true life example may show more or less discretionary income. The numbers may be different depending on your individual circumstance.

Mortgage Loan Rate Term
$300,000 6.00% 360 Months
Monthly Payment (no lump-sum payments): $1,798.65
Total Interest to be Paid after 360 months: $347,514
Mortgage Paid Off: 30 years
Interest Paid after making lump-sum payments: $284,814
Interest Savings (approximately): $62,700
Mortgage Paid Off: 26 years
Annual BLOC Interest Charges
(assuming $3500 avg. daily balance at 8%):
$280
Download this spreadsheet to run your own numbers.

FREE Download (MS Excel Worksheet)

If you have MS Excel - or other type program - use this amortization schedule to analyze your own payment and payoff numbers.

final review notes in the next slide

 

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Paydown mortgage