Mortgage Reduction

1
Speed Equity Software System

• Mortgage Reduction
• Equity Accelerator
• Software Program
• Using a HELOC

PowerPoint Presentation
2
The Speed Equity Program

• NOT a Concept or Theory
• NO changes in Monthly Budget
• NO changes in Daily Lifestyle
• NO need to Re-Finance Mortgage
• NO Credit Report
• NO Monthly Fees
• NO Confidential Information

3
Speed EquityHow it Works with a HELOC( Home
Equity Line of Credit )

• In a previous video, Harj Gill talked about
  having the HELOC built-in with the 1st mortgage.
  Thats what the Australian mortgage products do.
• Only a few lenders in the United States have
  been offering this mortgage product to their
  customers. It should grow in popularity.
• For a list - see LENDERS on this web site.
• The 2nd position HELOC is what most lenders
• in the United States offer today.

4
3 Components of the Speed Equity System

• 1. 1st Mortgage ( Closed-End Loan)
• Requires, at minimum, a full
  scheduled payment
• Allows payments in - but no
  withdrawals out
• 2. Home Equity Line of Credit (HELOC)
• (Open-End Loan - 2nd Mortgage)
• the HELOC amount should be
  about 2 times the monthly net income
• Open-End Loan - The Bank will apply money
  to this
• type of loan when received and adjust
  principal balance
• multiple times per month. Allows for
  withdrawals to
• maintain the liquidity of your money.
• Views average daily balance to assess
  interest charges.
• 3. Speed Equity Program web based software

5
Loan ProfileThe Mortgage Loan Component 1

• 200,000 1st Mortgage principal balance
• 2. 6 annual interest rate
• 3. 30 year amortization term
• 4. 1,200 monthly PI payment

6
User HELOC ProfileThe HELOC Component 2

• User
• 5,000 - monthly net household income
• 3,200 - monthly household expenses
• ( food, clothing,
  car payment, Etc.)
• 1,200 - monthly mortgage payment
• 600 - monthly household discretionary income
• HELOC
• 10,000 - HELOC line of credit
• 8.5 - HELOC annual interest rate
• 3,500 - Initial injection from HELOC into
  principal
• 2,000 - Recurring injection amounts from HELOC

7
Understanding a HELOC

• It stands beside the 1st mortgage Not a part of
  it !
• Its NOT a savings account
• Positive money does not accumulate
• Balance CANNOT drop below 0
• To receive a 5,000 income deposit, the balance
  owing must be at least 5,000
• Must have specific features which enables the
  program to function efficiently
• The next slide shows those special features !
  Ask your lender to provide those features
  to you !

8
A copy of this form can be printed out on
this website.
9
HELOC Home Equity Line of Credit Component 2

• The HELOC used in the following example is
  for 10,000. It could be for 50,000 but,
  the mortgage will not pay down any faster !

1st Mortgage
200,000
HELOC Functionality
HELOC 2nd Mortgage
1. Becomes Primary Checking Account 2. Deposit
all Income into HELOC 3. Pay all of the Bills
from the HELOC 4. Pay 1st Mortgage
Principal Injections 5. Keeps money liquid for
an emergency
Balance
10,000
Credit Limit 8.5 Interest
10
Speed Equity System Injections from HELOC to
Reduce Mortgage Principal

• An Initial Injection is made when the program
  starts and HELOC is opened.
• As you pay the HELOC balance down and its almost
  zeroed out, the software will prompt you to do an
  injection into the PI loan.
• This is called a recurring injection and it
  occurs about every 2 to 6 months. You determine
  the minimum amount of each injection.

11
Speed Equity SoftwareComponent 3

• As A Tool
• The software is the tool that allows
• each user to make follow their Plan.
• Their specific information is collected on the
  Input Worksheet and entered line for line into
  the software.
• The program is very user friendly. Its easy to
  make changes or to update the information as
  necessary.
• A Complete Software Tutorial is on this web site
  !
• The results are Unique for the User only!

12
Your Plan Must Be - S.M.A.R.T.

• S - Specific to You
• M - Measurable with Feedback
• A - Achievable for You
• R - Results Need to be Obtained
• Within a Certain Time Frame
• T - Tools to Get You There
• The Speed Equity Program gives the User
• all of these. We dont want you to fail !

13
Collect Information Enter Line for Line
A printable copy of this form is on this website.
14
Speed Equity Software

• Does NOT control or move money
  Does not ever
  ask for a Social Security Number or any other
  Account Numbers
• Does NOT pay bills takes NO action - it only
  prompts the User, who must then take all
  the Action.
• Provides a True Cost Forecast
• Functions as an online account register
• How much money is coming in
• How much money is going out
• Tracks your monthly budget
• Financial Dashboard and GPS

15
Lets Start the Program

• Its Time To Make The 1st Payment !

16
1st Month
-0- Starting Balance
6,500
2,100
7,100
10,000 Available Credit _at_8.5
-3,500 Pay 1st Injection Amount To
Reduce Mortgage Principal
7,080
-4,400 Pay All Living Expenses ( Mortgage
Payment, Car Payment, Food, Clothing, Etc. )
5,000 Deposit Net Income
HELOC

The Equity Is In The Walls
-2,860 Average Daily Balance The Bank can
Only Charge Interest on This Amount
20.26
The 1st Injection Reduced the Original Mortgage
Term by 17 Months
HELOC Interest
16,860 of Future Mortgage Interest Payments Were
Saved as a Result of the 1st Injection
17
-ALOC

• Month 1 Summary
• -2,860 HELOC average daily balance
• Lender was looking for 20.26 in finance charge
• The homeowner never made a monthly payment
• of 20.26
• The income they deposited covered the monthly
  payment in other words . . .
• they made a payment of 5,000 to the HELOC
• New average daily balance with finance charge
• -2,920.26

18
Month 1 Summary - cont.

• -7,900 Money borrowed from HELOC
• -2,860 Interest assessable balance of
  HELOC
• There is -5,040 that had NO Interest paid on
  it !
• You paid NO interest on the 4,400 you used
• to pay your living expenses !
• You paid NO interest on 640 of the
  money you used
• to pay down the mortgage !
• Your HELOC becomes an Interest Saving Account !
• Watch for this to happen Month after Month !
• Tax deductible?

19
2nd Month
2,680
7,663
-2,920 Starting Balance
7,680
7,080 Available Credit Balance
-4,400 Pay All Living Expenses ( Mortgage
Payment, Car Payment, Food, Clothing, Etc. )
5,000 Deposit Net Income
-2,365 Average Daily Balance
HELOC

16.75
Interest
20
3rd Month
3,263
-2,337 Starting Balance
8,263
8,251
7,663 Available Credit Balance
-4,400 Pay All Living Expenses ( Mortgage
Payment, Car Payment, Food, Clothing, Etc. )
5,000 Deposit Net Income
-1,714 Average Daily Balance
HELOC

12.14
Interest
21
4th Month
3,851
-1,749 Starting Balance
8,851
8,843
8,251 Available Credit Balance
-4,400 Pay All Living Expenses ( Mortgage
Payment, Car Payment, Food, Clothing, Etc. )
5,000 Deposit Net Income
-1,172 Average Daily Balance
HELOC

8.30
Interest
22
5th Month
-1,157 Starting Balance
4,443
9,443
9,439
-4,400 Pay All Living Expenses ( Mortgage
Payment, Car Payment, Food, Clothing, Etc. )
8,843 Available Credit Balance
5,000 Deposit Net Income
- 568 Average Daily Balance
HELOC

4.02
Interest
23
6th Month
5,039
- 561 Starting Balance
10,039
9,439 Available Credit Balance
-4,400 Pay All Living Expenses ( Mortgage
Payment, Car Payment, Food, Clothing, Etc. )
5,000 Deposit Net Income
- -0- Average Daily Balance
HELOC

-0-
Interest
24
7th Month
39 Starting Balance
5,639
10,639
8,600
8,590
-4,400 Pay All Living Expenses
10,039 Available Credit Balance
5,000 Deposit Net Income
-2,039 Speed Equity prompts a 2nd Injection
To Pay Down The Principal !
-1,467 Average Daily Balance
HELOC

After 7 Months The Total Reduction Off the
Original Mortgage Term is 26 Months
After 7 Months The Total of Future Mortgage
Interest Saved is 25,465
7 month total 71.86
10.39
Interest
25
8rd Month
-1,410 Starting Balance
4,190
9,190
9,184
-4,400 Pay All Living Expenses ( Mortgage
Payment, Car Payment, Food, Clothing, Etc. )
8,590 Available Credit Balance
5,000 Deposit Net Income
-1,294 Average Daily Balance
HELOC

5.93
Interest
26
9th Month
- 816 Starting Balance
4,784
9,784
9,782
-4,400 Pay All Living Expenses ( Mortgage
Payment, Car Payment, Food, Clothing, Etc. )
9,184 Available Credit Balance
5,000 Deposit Net Income
- 260 Average Daily Balance
HELOC

1.84
Interest
27
10th Month
- 218 Starting Balance
5,382
10,382
-4,400 Pay All Living Expenses ( Mortgage
Payment, Car Payment, Food, Clothing, Etc. )
9,782 Available Credit Balance
5,000 Deposit Net Income
- -0- Average Daily Balance
HELOC

-0-
Interest
28
11th Month
382 Starting Balance
5,982
10,982
8,600
8,589
-4,400 Pay All Living Expenses
10,382 Available Credit Balance
5,000 Deposit Net Income
-2,382 Speed Equity prompts a 3rd Injection
To Pay Down The Principal !
-1,605 Average Daily Balance
HELOC

After 11 Months The Total Reduction Off the
Original Mortgage Term is 36 Months
After 11 Months The Total of Future Mortgage
Interest Saved is 35,300
11 month total 91.00
11.37
Interest
29
After Just 11 Months . . .
Look At The Results!
To Save 35,300 in Future Mortgage
Interest Payments !
Thats 36 Monthly Payments that will NEVER be
made to the Bank !
The Original Mortgage Term was Reduced by a
Total of 36 Months
The user traded the payment of 91.00 in HELOC
interest
30
If Speed Equity is used for the life of
this loan, the user will trade the payment
of 968 in HELOC Interest to save
128,844 in future Mortgage Interest
Payments.
31
Thats 128,844 that will NEVER BE PAID to
the bank ! Money in the your pockets !
32
AND . . . THAT'S THE MAGIC OF SPEED EQUITY
! For Only 49.95