What was your mortgage situation prior to starting with Replace Your Mortgage?
We were first-time home owners who got into a 30-year mortgage with a starting balance of $400,900, paying Private Mortgage Insurance.
When we joined RYM, we had $398,000 in remaining principal balance after paying our monthly payment for a year.
What is the current status of your HELOC and how many months did it take you to achieve it?
After only 3 months utilizing the HELOC, we have reduced our principal balance to $376,000.
What was your biggest concern when deciding to join RYM?
We were worried about the variable rate, but after listening to the videos and the Facebook sessions with Michael, that was cleared up.
The rate (plus time) is the most important aspect. With the HELOC strategy, you reduce your time so significantly that the variable rate doesn't affect you as much as if you were in a variable-rate mortgage for 30 years.
How has using the RYM strategy changed your life?
The RYM strategy has opened the doors for future investing -- and, really, obtaining financial freedom before I am old and getting ready to retire.
We are very excited to move forward with achieving our financial goals. We’re hoping to utilize this strategy to build our own real estate portfolio that brings in passive income to allow for us to retire early.
What advice would you give to a homeowner considering trying the RYM strategy?
Figure out how to live below what you take home by establishing a zero-sum budget. Understanding how you spend your money with a solid budget will help you gain the discipline to implement the RYM strategy.