1. The Line Of Credit Method
Bank Account
W2 Income
$5,000
LOC Credit
Line of $50,000
1st Mortgage
$300,000
STEP 2
Take monthly income of $4,000
and put in LOC.
STEP 1
Move $5,000 from LOC to 1st Mortgage
RESULTS
1st Mortgage balance is now $295,000
LOC balance due is $5,000
Monthly Bills
STEP 3
Pay monthly Bills of $3,500.
$500 left over for discretionary income.
Overall Results: The Magic takes place in the environment of the LOC. The Starting Balance for the month is $5,000. Because you put your monthly income in the HELOC and keep it there for as long as possible, the balance for the month in the LOC changes from $5,000 to $2,000. Thus you only pay interest for the month on the $2,000. The overall average daily balance in the LOC is kept down.
Real interest rate: 9%. EFFECTIVE INTEREST RATE: 2%
Overall Results: The Magic takes place in the environment of the LOC. The Starting Balance for the month is $5,000. Because you put your monthly income in the LOC and keep it there for as long as possible, the Balance for the month in the LOC changes from $5,000 to $2,000. Thus you only pay interest for the month on the $2,000. The overall average daily balance in the LOC is kept down.
Real interest rate: 9%. EFFECTIVE INTEREST RATE: 2%

2. The Line Of Credit Method
Daily Calculated Interest
It really does matter where your money is sitting on a daily basis. We have been taught to put our money into our checking account but this does not address the issue of daily calculated interest. Once you put your money is in your bank account it STOPS WORKING for you!
This banking technique is used by FORTUNE 500 companies. They understand this principle and they save HUNDREDS of THOUSANDS of dollars a year in interest.
Example of what this
software can do for you
Total Debt: $495,128
Interest Rate: 5.25%
Years Left: 28
Monthly Income: $14,167
Expenses: 9,398
Debt Free in: yrs. 10 mos.
Time Savings: 21 yrs. 2 mos.
Interest Savings $248,242
Real Interest Rate
Loan: $200,000
Rate: %
Paid For: 30 Years
Total Interest Paid: $255,088
You Paid: 6.5% Interest
Effective Interest Rate
Loan: $200,000
Rate: 6.5%
Paid Off Early: 10 Years
Total Interest Paid: $72,000
You Paid: % Interest