How Your Mortgage Debt is a 'Ticking Time Bomb' 💣🧨

Well, if you have access to a large amount of capital, you can make a large, in theory, lump sum deposit on the principal balance of that loan right before the renewal date. Now, you're affecting the total balance at renewal. And even though the rate is higher, the volume of money is lower, and so you might be able to create payment equalization, some stabilization on the total monthly payment. So that's a way that you can exercise a measure of control over your financial circumstances by building a capital pool that's external to the current banking system that you operate in. And now you're doing that on a more regular basis. Some people may do it on a more ad hoc, or maybe yearly or cent, or maybe once every couple of year basis so that they have a little bit more liquidity in place.