Hey what's going on this is Sam Kwak with one of the Kwak brothers and one thing that I've realized is when we released our
HELOC calculator for you guys for you to download for free
We missed out the instruction so what I'm gonna do is I'm gonna go ahead and break down on
How to best use this calculator for your situation to give you guys more
more clarity as to the instruction and I do also want to let you guys know that we do update
this calculator file from time to time so if you have an outside
outdated version of the calculator you guys can always go back and download and get the newer version of the calculator
so that you guys can get the most up-to-date and
accurate information
Using this calculator so here we are I went and opened up the calculator now if you don't have the calculator I haven't left
The download link down below in the link description below and before we move forward further on
I do ask that you guys subscribe to our YouTube channel and click like on this video to show some support
Also and continue to do our work to help you and serve you guys in terms of helping you pay off your debt so
when you first download the calculator you guys can see that there's a disclaimer and
a disclosure I do want to let you guys know that no calculator is ever going to be perfect, when it comes to
Giving you guys information 1 because you guys have all of you have unique situation and different
Bearing factors so I mean there's millions and millions of different factors that may change this scenario so
I've done my best as far as putting together a calculator that pretty much has a broad stroke on everybody
So here we go the first thing you're gonna crunch in is your original
Balance and the reason why the calculator needs this is because it needs to understand how much is your original
Interest and what does the amur ization look like for your your existing loan so the original balance is
When you first got the loan okay? Or when, was the last time you refinance if you have a mortgage okay so
go ahead and put in what was the original amount so if you bought a
$300,000 home and you had you know you started with a
$260,000 balance let's say go ahead and put that number in there you may have paid off
some of that original balance over time
the current balance that you're gonna have to go and put in what is the loan balance
Right now like go and look up your mortgage statement for this month or if you're looking at pseudo loan
or credit card go ahead and pull up your statement and you will see the current balance for your
given loan account that you're trying to pay off interest rate is pretty simple go and put in your interest rate if
it's an amortized loan go ahead and put a 30-year mmm er ties
term if it's a 15-year loan go and put the teen year if you're
Doing this on a car loan chances are you have a five six or seven year loan so you're gonna go ahead and put that
number there
payment amount should be
calculated for you as long as you got the original balance interest rate and the term
Amortization period correct okay this payment amount guys its principal and interest only if you guys are doing this on a mortgage
Taxes and insurance are not including that payment amount because taxes and insurance should not be affecting your balance at all those are just
Operating expenses taxes go right into your municipal government insurance goes to course insuring the liability of your home so
The payment amount of twelve 6671 for this example is only
principal and interest
Okay it should auto populate to what the start date
with the data is of today okay so
at the time of this recording it's March fourth
2019 by the time you open this calculator up it's gonna auto update to whatever date that you guys are using this calculator, okay?
monthly income so let's say in this example we're gonna put six thousand and
Then you're gonna put in your living Spence's that does not include
Your payment amount. Hey, I know some of you guys have been using this calculator and
You've bunched up the living expenses and the payment amount the loan payment amount you guys are gonna get a faulty lumber so make sure
you put them put
living spence's
minus your monthly loan payment so if you're working if you're working off paying off your
your mortgage you're going to deduct the mortgage amount from your living expenses and put them put that amount in that column right there
but be sure remember you got to add the
Taxes and insurance back onto the living spaces because technically you're you are still paying for that
The calculator may not tell you but make sure you put into taxes and insurance back into the living spaces
okay, the next thing is you're gonna go ahead and put your line of credit amount to use now the line of credit amount to
Use is not to be mistaken with the line and credit limit
You may have a hundred thousand dollar line of credit limit but you may choose to use only fifty thousand of that
Okay, or you may have a fifty thousand dollar line of credit limit but you may only choose to use forty thousand
does that make sense so go ahead and put the that amount however much you want to use now if you're looking to replace your
entire mortgage with a first position HELOC if you're using this for a mortgage you can go ahead and
take the current balance amount and just clone it right into the line and credit amount to use so if you haven't a
Current balance of twenty fifty or two hundred thousand dollars let's say
Go ahead and put two hundred thousand dollars right there in the line and credit amount to use
Okay, and of course your line of credit interest rate this
Made very I've seen a line of credit interest rate as low as five percent
I've seen as high as 12% again this may vary depending on
which line and credit prompt you use you might be using a home equity line of credit a
Personal line of credit a business not a credit
Whichever line of credit product you're using you're gonna see a varying interest rate so change that interest rate depending on
what you're trying to shop for okay and then down below you guys you guys are gonna see the result of
That all the number crunching crunching that you
did in this example if you have a six thousand dollar monthly income what the four thousand dollar living expenses not counting the
the payment amount
Okay, you are going to pay off the mortgage or whichever detonator you're paying off in ten point eight years
Saving you forty three thousand dollars of interests okay? The new interest that you're gonna have to pay is
59504 forty nine five and five hundred fifty and fifty nine dollars and sixty seven cents okay and
Here's a little chart visual chart to show you guys
more of a visual sense how this
Calculator is working so you can see here that the beginning you're gonna reduce the amount if ik Utley by
50,000 because we're using
$50,000 of the line of credit and then we got
$150,000 a that's that's slowly dropping because you're still making those monthly payments of
1,300 or 1,200 in this example right
So, we're gonna just round it up and say 1,300 and then once the line of credits paid off in 2024 it appears like
We're gonna use another $50,000 chunk to bring that down now obviously if you are replacing your entire mortgage
You're good you're gonna carry that balance over to that line and credit balance instead so you're gonna see a completely different scenario
so that's pretty much how you use a calculator to kind of determine what the result is going to be
some of you guys have been asking, well Sam can I see the step by step can we see the details
Then we actually have a premium version of this calculator which comes with our program our?
Debt free debt free accelerator program because they're interested in that
you guys should by the time you guys have downloaded this
Calculator we should have sent you an email about it how the program works and so on?
So guys that's pretty much it as far as using the calculator if you have any other questions
Please let me know so they can help you clarify on how to use this calculator to get the best result
Most errors come from not crunching the right numbers so
if there's anything I can help you guys
Clarify and making sure that you guys are using the calculator properly
do let me know alright guys thank you so much a nice I hope to see you guys in the next video take care of