Look at your personal finances. Calculate your recurring and projected expenses, and measure those against your guaranteed and projected income. The relationship between these items is your cashflow, and is something that can be optimized to save you money.
Many homeowners calculate their budget on a monthly basis, and generally sum up their income and expenses to a bottom line to determine their net income. This seems to make sense, but it disregards the differences in time between your income and expenses. At certain points in the month, your net income may vary drastically, being much higher or lower than the end of month calculation.
By routing your income and expenses through your 1st Lien HELOC, you can take advantage of the reduced principal balance (due to your periods of positive cashflow), which ends up saving you money on interest.
Seems simple doesn’t it? Is that really all there is to it? No magic tool? No prize behind a walled garden? As anti-climatic as it may seem, this is the truth. By routing your cashflow with your 1st Lien HELOC as the central hub for your income and expenses, you pay down your principal balance much faster, and therefore, reduce your calculated interest liability exponentially.
It’s been brought to our attention that there are other 1st Lien HELOC enthusiasts who try to sell courses, memberships, or some how make you pay for strategic information about how to use a 1st Lien HELOC to your advantage. Here at FirstLienHELOC.com, we aim to empower your financial life with free information, and gladly work with our community to showcase why 1st Lien HELOCs are quickly becoming America’s all-in-one home financing tool.
1st Lien HELOC’s calculate interest based on the average daily balance. When you factor for monthly cashflow considerations, as long as you are cashflow positive more than you are cashflow negative, you can save money as less interest will accumulate.
Well first, this strategy is relatively new. Not a lot of people know about this because the Banks aren’t incentivized to promote this. Banks want one thing. . . to make money, but the strategy we are promoting makes them less money than a traditional mortgage.
Banks aim to make as much money as possible, as quickly as possible, and for as long as possible. Traditional mortgages successfully accomplish these things for the bank, along with many government subsidized programs existing for mortgages.
But HELOCs have been growing in popularity and some banks are exploring markets for a first lien HELOC. Once you explore the math of a first lien HELOC, you realize just how powerful it is in saving on interest and paying down your debt faster.
Sign up on FirstLienHeloc.com to get connected with a licensed lender who can deliver an all-in-one 1st Lien HELOC. They’ll walk you through the application process and help outline your budget, your numbers, and exactly how much you can save by replacing your mortgage.