5 Benefits of Velocity Banking– Part 2
Apparently, velocity banking looks like an easy way out from the entire mortgage scenario. But there are certain rules that you need to follow in order for things to make sense.
Over the course of time, the concept of velocity banking has been tried and tested. And it is being used by many people to pay off their mortgages. Let’s look at the pros and cons of velocity banking.
Benefits of Velocity Banking
The benefits of velocity banking are evident. Read on to see what’s in store for you.
1. Helps in an early mortgage pay off
The best thing about velocity banking is that it really helps pay off mortgages faster. Other than that, it is also a great repayment strategy you can adopt. Utilizing this strategy allows you to make large repayments which help in getting away with mortgage faster.
2. Helps Free Equity
With the combination of HELOC and velocity banking, you will be able to use money that is normally not involved in the mortgage process. This strategy allows you to streamline the mortgage payment process.
3. Helps Lower the Interest
Since free cash is utilized in velocity banking, the length of the mortgage is shortened. This shortening of time decreases the compound interest on the initial amount owed. Because velocity banking is all about making things faster and smoother, the overall time for the mortgage will be reduced.
4. Helps With Quick Cash Access
Keeping your money with the HELOC allows you to gain access to funds they usually won’t have. Since life is not a bed of roses and there are times when sudden payments are to be made, having access to cash is always helpful. From sudden car repairs to paying your bills, HELOC has got you covered.
5. Helps in Making You Financially Independent
Once you are on the course of decreasing your debts, you start becoming financially independent. This means that you have overcome that main debt that haunts certain people throughout their life. Paying off one’s mortgage is known to be a tiresome task. Therefore, defeating debt is the first thing financially independent people learn.
Follow Protocols
Since the benefits of velocity banking are numerous, one can’t stay away from looking into it. Remember, there are certain things you need to follows in order to be able to make full use of the velocity banking concept. Therefore, it is advised that you make sure that every technical detail is taken care of. Discussing with experienced people is also helpful if you are new to the whole concept.