…and Gets Away With It!

I took on the bank and got away with it. I'm a law-abiding, speed-limit driving former high-school teacher. Maybe being a teacher accounts for looking at money in a different way. It's limited. At least it was the years I taught school.

So I gasped when I looked at the $484,834.38 that Wells Fargo Mortgage was going to get for lending me $200,000 to buy a home,. You've heard the advice, "Don't get mad, get even"? That’s what I would do. Even better than getting even is getting ahead!

About a year into the loan, I heard someone talk about using equity to pay off your house. It really isn’t complicated. Some high-priced revolving equity lenders would like you to think it is, so they can dip their hands more deeply into your pockets. Using equity to pay off your house is simply using the paid-for portion of your house to pay down the unpaid-for portion.

After two years of diligently using this system, I had real numbers to support the theory. Looking at what I still owed on the house, and adding back all my payments, I saw how much difference the equity infusions made. I had it in black and white I’d cut $70,000 off the proposed pay-back on my loan.

That $70,000 was a blend of principal and interest. Reducing the principal by $20,000 from my home’s equity eliminated $50,000 of the interest I was scheduled to pay.

To see the exact steps I followed, get the manual I wrote recording my and several of my friends' experience with this technique and others.