What was your mortgage situation prior to starting with Replace Your Mortgage?
We had a 30-year mortgage with a starting balance of $374,000.
Our remaining balance after paying our traditional mortgage for nearly 4 years was $350,000.
What is the current status of your HELOC and how many months did it take you to achieve it?
Our HELOC's starting balance was $360,000. We paid off consumer debt and put a down payment on a second home to be built (the total was around $40,000).
Our current HELOC balance is now at $370,000 after 6 months, but we project to be back at $360,000 in two more months.
We have been our own bank. Our home will be paid off in 8 years instead of 30, and our second home should only take 3-4 years to pay off after we pay off our HELOC.
What was your biggest concern when deciding to join RYM?
I was concerned about rising rates but learned that the math works.
Our home will take us around 8 years to pay off, even with the purchase of another home.
That home (after the HELOC is paid) should be paid off in less than 3 years, even if rates rise an average of .5% from prime rate today every year. It’s mind-boggling.
How has using the RYM strategy changed your life?
Freedom. Freedom from loans, consumer debt and the ability to purchase another home (for rental income). This will give us a way to “save” for college, weddings and retirement in a much more aggressive way.
What advice would you give to a homeowner considering trying the RYM strategy?
Don’t wait. RYM is life changing. Logistically, be sure to set a realistic budget that you can stick to, so you can maximize the benefits of the HELOC (especially on the intro period).