When you become a homeowner, chances are you will constantly hear about the velocity banking strategy. For some it is only a scam while others view it as the perfect opportunity to pay off their mortgage in 5-7 years. Either way, it is on your best interest that you have a good understanding of what goes into velocity bank before deciding on anything.
If you’ve been having doubts in your mind all this while, then there is nothing to worry about since you are at the right place. In this article, we will take you through some of the things you ought to know about velocity banking. Keep reading to find out more.
What is Velocity Banking?
Before going any further, it is essential that you get an insight into what velocity banking is all about. To give you a tip of the iceberg, this is basically a strategy where you get to use a line of credit as your primary account. It is then that you can use lump sums to pay off a loan, mostly a mortgage.
The real idea behind velocity bank is that when you use a line of credit, it will definitely help you use your cash flow and extra money to cover your expenses. Of course, this is as you go toward paying off your mortgage.
How Does Velocity Banking Work?
Now that you already know what velocity banking entails, it is also important that you understand how it works. Before you take advantage of this strategy, you need to know your four major numbers i.e., income, expenses, debt, and cash flow. Once you have this information, you need to look for an effective cash flow. Through this action, you won’t have to worry about anything once you get started.
The Bottom Line
These are just but some of the things you need to know about velocity banking. It is highly recommended that you do your research and get answers to all your questions before deciding on anything. Hopefully, this post can serve as a good starting point before you leverage velocity bank.
Stella Tennant has helped several global brands, which get heard across the digital space, through result driven content & social media marketing efforts. Studying blockchains and cryptocurrencies makes her hopeful of a free and decentralized future.