One thing I'm asked pretty regularly is if Velocity Banking will work for a specific circumstances, I always ask if they know their Four Major Numbers and from there we can get into the pros and cons.

Pros to Velocity Banking

Pay less interest: Because the velocity banking strategy requires free cash flow, the length of the mortgage is significantly shortened. Because you are paying more up font you have less compound interest on the principal amount owed.

Pay off your debt early: Velocity Banking is one type of debt repayment strategy that will work to help you pay off your debt more quickly. (Example in the video below)

Free up equity: Mortgages don’t allow you to tap into your equity, a home equity line of credit (HELOC) combined with velocity banking lets you use money that you wouldn’t ordinarily have access to.

Cons to Velocity Banking

HELOC adjustable rates: You may not be able to find a bank that offers fixed rate HELOCs. This may put uncertainty on the amount of interest...