6. RULE OF 72 Difference between 3% and 6% = 3%. Difference between $4,000 and $16,000 = 400%
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9. Canceling out 6% of interest is the same as making 6% $ 200,000 6% INTEREST $ 200,000 6 % INTEREST $ 1,199 A Month $ 190,000 Loan 6 % INTEREST $ 1,139 A Month Cancels $ 60 What If … … instead of giving your money to the bank to float, you floated your own money for yourself?
10. Not a New Concept – Australia and England Australians pay $100,000 - $150,000 less in interest on their mortgages than do we Americans.
17. Closed Ended Loan (1 st Mortgage) Equity Line Closed Ended Loan (1 st Mortgage) $ 40,000 Equity Line Closed Ended Loan (1 st Mortgage) $ 200,000 $195,000 $195,000 $ 40,000 $ 40,000 $5,000 $0 $0 A Better Way… $5,000 Income Transfer Funds
18. Income Average daily balance works in your favor; when you combine income and expenses and use your Open Ended Equity Line as your checking account. Keeping income in an open ended account cancels out the amount of interest that can be charged to you. Consider all the cash flow that you give away every month. SIMPLE STRATEGY: Your Equity Line Becomes Your Checking Account How It Works…
22. Monthly Payment And “Float” Payments are due on the 1 st , late on the 16 th , and applied on the 30 th Bi-Weekly programs can not avoid this “contractual” agreement. What happens to the money? (Interest, Principle?) 1 st Due 15th 30th One Way Banks Make Money: Float
23. Escrow Money Mortgage Payment Rental Income Float Stagnant money Daily balance in Checking, Savings accounts, CD’s Income Tax Withholdings WHERE DOES THE MONEY COME FROM? Learn the Power of the Money Merge Account Debt Merge Credit cards, Auto loans, Second mortgages, Student loans
33. $200,000 $60,000 Mortgage Open a Home Equity Line of Credit (HELOC) = HELOC HELOC Closed End loan Open End loan
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41. $20.83 Interest $12.50 Interest Jones Family $200,000 Loan @ 6% = $1,199.10 $15,000 Equity Line @ 10% $5,000 Monthly income -$4,000 Living expense (mortgage, car payment etc.) $1,000 Discretionary income Month 1 $3,500 MMA investment $4,000 Living Expenses $7,500 On your equity line $5,000 Income $2,500 Monthly balance Month 2 $2,500 Starting Balance $4,000 Living Expenses $6,500 On your equity line $5,000 Income $1,500 Monthly balance
49. 7.5% Increase In Net Worth Total Interest Savings of $167,219.00 MMA Program Conventional Program Starting Balance $200,000 $200,000 Year End Balance $184,811 $197,543 Repayment Time 10.4 Years 30 Years Total Interest Paid $70,422 $231,677
66. Mortgage ALOC Here’s how it works. We use $ from the ALOC. And yes, the balance on the ALOC goes up. And yes we slam down the mortgage! The software prompts an equity transfer !
73. Mortgage ALOC Now the ALOC balance is low again, the software prompts another equity transfer .
74. Mortgage ALOC Here we go again. We use $ from the ALOC. The balance on the ALOC goes up. And yes, we slam down the mortgage! SLAM! Balance increased.
80. Mortgage ALOC Here we go again. The software prompts an equity transfer !
81. Mortgage ALOC Here we go again. We use $ from the ALOC. And yes, the balance on the ALOC goes up. And yes we slam down the mortgage! SLAM! Balance increased.
