Home Mortgage Accelerator Strategies

When you first moved into your home it seemed like the best financial move.

What better investment in your family than home ownership.

But as you earn your paycheck each month, you quickly realize that sometimes approximately 40% of your monthly hard earned paycheck goes towards paying off your mortgage and it feels worse as most of that is just for the mortgage interest payments.

Thats perfectly acceptable but

A big chunk of your payments goes towards paying off interest rather than your mortgage principal, especially in the early years of your mortgage.

And it could take almost thirty years, and if you refinance along the way over 40 years to pay off that mortgage.

And lets assume you are approaching retirement.

Just imagine your mortgage outlasting you in retirement. When you pass on the home on to your kids they think they have a home but may be saddled with mortgage debt as well.

You may think you are donating the home but the sad reality is that you are donating over mortgage debt.

You have worked hard your entire life and been conservative and responsible with your money.

Is there anything else you could do to get rid of the mortgage burden before retirement or send your kids to college without changing your current lifestyle?

Well I am excited to show you a new approach to this below.

By this point you may only have one large debt

Your mortgage.

You now can eliminate the significant amount of the interest payable on the mortgage debt.

The home mortgage accelerator system will help you save thousands and get rid of your mortgage debt at least 13 years faster, even if you chose not to change your lifestyle or spend more.

Government Statistics (by mortgage insider) show that over 80% of Americans live in debt.

And now most retirees have to postpone their impending retirement or take on a part time job in retirement and you know why? They have to pay for the mortgage bill each month which is competing with the medical and other retirement costs.

To retire without the burden of debt the easiest step is to pay off your mortgage first.

By applying the methods of the home mortgage accelerator, this is the easiest way pay off your mortgage.

By definition, the home mortgage accelerator sometimes referred to as the home mortgage accelerator system is a term given to the practice of paying off a mortgage loan faster than required by terms of the mortgage agreement.

By making additional payments towards your mortgage in the early years, you could pay off principal at a rapid pace and end up paying off your mortgage earlier.

But most homeowners dont have extra money to pay towards their mortgage in the earlier years. So by using the home mortgage accelerator it automatically allocates extra principal to your mortgage without you even realizing this.

It allocates your monthly repayment more towards principal and less towards interest costs.

And the biggest benefits of all, your mortgage could be paid off in less than 10 years. Imagine saving thousands.

This is the most important benefit of the home mortgage accelerator.

With this extra cash, you would be able to put your kids/grandkids through college, or purchase a second property for investment purposes or just have the extra cash to enjoy during retirement.

Here is where I would start:

Have you sat down and calculated how much of extra interest you are to pay every month on your mortgage?

You are going to find out why you should be asking this question.

Your payment for your mortgage is structured in favor of your bank. This is considered acceptable banking practice. But if you ever found out the true cost of your mortgage, you probably want to change this so that you can keep more for yourself.

The following examples will give you more insight to how you can use the mortgage acceleration system for your situation.

Situation 1: You Are in Your 20s and Have at least 40 Years to Retirement

You bought your first home for $300,000. Based on your credit and earnings, you qualified for a 6% interest rate for your first home. Your total repayments over a 30 year period, for interest only, will be approximately $347,514.

More than what you have borrowed on the mortgage.

With the home mortgage accelerator system you could slash at least 13 years of your mortgage saving over $67,000.

Instead of being in your 50's when your home is paid off, you will only be around 40.

You can use the equity in your existing home to fund the down payment on an investment condo.

You may even consider retiring from your corporate job at that point.

Imagine how you life would change when you dont have any major financial burdens.

Remember we do this without changing our current lifestyle or having to make any sacrifices in the way we live.

What If You Are Already In Your 40s?

The biggest goal at this point would be to send your kids to college. Most of my clients dream of giving their kids a debt free college experience.

Imagine your kids stuck in a corporate job spending 10 -15 years of their life paying off college debts. That financial legacy will continue to perpetuate itself to their kids and so on.

Using the debt payoff accelerator system, you can build equity in your home and use this equity to pay for college fees. You dont have to worry whether they may qualify for loans or your investments will be enough to cover the student tuition.

Think about how your kids will thank you for this when they receive their first paycheck and get to keep the money for themselves rather than pay off their college debt.

Since you used the equity to pay for your kids college education you now have to pay this back before retirement. Wait, you can still use the home mortgage accelerator system to fully pay off these college costs before retirement. And yes, you can still do that without changing your lifestyle.

You never know when an unexpected medical emergency may arise. With the additional equity in your home you could use as an alternative means of paying for those unforeseen challenges.

Lets Assume That Retirement Is Rapidly Closing In

Do you know what is the biggest threat to your retirement? Its actually paying off debt with your retirement savings.

Lets take a look at the last year. The stock market fell. And as a result this has caused some pressure on your retirement investments.

If you nest egg has dropped significantly and you have outstanding debt, then it is going to be a real challenge to retire on time as your retirement savings will now only be enough to service debt and you may have to delay your retirement.

This in turn may result in you working longer in retirement instead of enjoying your retirement with your kids and grandkids.

Even though you may be financially stable at this point, you would still benefit from the home mortgage acceleratorby simply knowing that you are protecting your future by eliminating one of your biggest debt before retirement.

Depending on how close or far away from you are from retirement, you could use the home mortgage accelerator in different ways to compliment your investment goals. Be sure to examine your options closely. Accelerate your mortgage as fast as financially possible.

What is Required For The Home Mortgage Accelerator Program In Order To Get Started?

Your Property needs to be in your personal name

Have an existing Home Equity Line of Credit or you can qualify for a Home Equity Line of Credit

Your bills do not exceed your income for the month

A home mortgage accelerator program consist of a line of credit (HELOC) tied to an account with direct deposit that works like a checking account to pay out regular living expenses as well as pay down the balance of the house cost.

The average daily balance allows you to pay off the home loan much faster than a traditional mortgage. This reduces the principal balance on your mortgage at a rapid rate. You also benefit if you have any extra cash that can be applied daily to the principal on the loan.

Is The Home Mortgage Accelerator Only For A Fixed Rate Mortgage?

A home mortgage accelerator method can be applied to an interest only mortgage, an adjustable rate mortgage, and a biweekly mortgage payment as well.

And if you have an adjustable rate mortgage (ARM) the benefits are amazing. What you dont realize when you take out an ARM is that you mortgage term is longer than 30 years. So a 5 year ARM will take you 35 years to pay off. Why? Because once the adjustment period expires, the mortgage resets and you begin with a whole new 30 year mortgage all over again. And with a home mortgage accelerator you could end up paying off your mortgage in 20 years or less rather than the 35 years you are scheduled to pay off your mortgage.

Also, the same method applies to an interest only loan. You could pay off your interest only loan in half the time without making extra payments. Imagine that.

And if you run out of money in retirement, you could end up taking out a reverse mortgage to finance your retirement. But here is the catch to qualify for a reverse mortgage. You need to have equity in your home. A home mortgage accelerator program gives you the advantage to build equity so you have the option of taking out a reverse mortgage in the event you ever need the extra finances.

Financial planning and check writing features are now being incorporated into many home mortgage accelerator loan programs thus eliminating the need for a separate cost of a financial advisor. As you now have more insight on the benefits of a home mortgage accelerator program, the key is to get started immediately.

How Do You Get Started With A Mortgage Accelerator?

STEP 1: Where to Begin

The best way is to start with a personal plan. You can create one on your own or get help with this. Then plan what steps you need to take to pay off your mortgage and how fast you can eliminate this debt in the shortest period of time.

A home mortgage accelerator plan is a great tool to make sure that you never fail to eliminate your mortgage no matter the situation. If life happens and you get off target a good mortgage acceleration plan can automatically help you get on track again.

Step 2: Decide On A Date You Want To Be Mortgage Free:

Decide on a date that you want to be mortgage free, (10, 15, 20 years). Next, decide how much extra you can afford to apply to your mortgage in order to accelerate it. And using the home mortgage accelerator tool with the extra cash you can quickly figure out when you want your mortgage fully paid off, if you wanted this accelerated even faster.

One way to accelerate the pay off of your mortgage is to use the mortgage acceleration system. Other methods are also available but require you to pay extra towards your mortgage to have this fully paid off.

Different Ways To Pay Off Your Mortgage

1. Biweekly Mortgage Payoff System

A Biweekly mortgage payoff plan has been around for over 13 years and is a widely accepted method of paying of making mortgage payments bi-weekly instead of monthly. In this way you end up with one extra mortgage payment each year.

NOTE: Sometimes a mortgage holder or private lien holder will not accept partial payments. Instead, put your half payments in a separate account. Make your monthly payment as usual out of this account. Then, either every 6 months, when you have the half payment available, send it to your mortgage company or wait until the end of the year when you will have a full payment to send in. Keep in mind, with a bi-weekly mortgage program instead of having interest reduced on a daily basis, unlike the home mortgage accelerator system; you will be making 1 extra payment a year.

Pay More of Your Monthly Paycheck Towards Your Mortgage

The fastest and easiest way to pay off your mortgage in rapid time is to pay extra each month towards mortgage principal. Any extra payments early in the life of the mortgage will significantly reduce the interest costs and will allow you mortgage to be paid off early. When making extra payment towards your mortgage principal, make sure you write on the face of the check that this payment must be applied towards principal only. At times, the banks will gladly accept the extra payment and apply a portion of this towards interest if not clearly specified that it must be applied to principal.

Different Home Mortgage Accelerator Systems

The choices of home mortgage accelerator programs can sometimes be very confusing. The may be described in various names such as accelerator, acceleration, equity, equity genie, mma, and other similar names.

One common trend across various mortgage acceleration programs is the use of software to help you navigate your finances and help with the goal of an early mortgage payoff. The starting point of these programs is for you to enter your information and the software takes care of the rest. The software is one part of the overall mortgage acceleration process. The key of any mortgage acceleration system lies in the set-up. If you set up the program for your situation ineffectively, you may not achieve the goal of slashing your mortgage early. The software is only as good as the initial set-up.

There are some home mortgage accelerator software programs that take care of this for you without any of the detailed entry and input. You dont need to enter a lot of data each month. Acceleration calculators can also give you a detail of how much money can be saved by pointing out what areas you can curb spending in. If used on a yearly basis, home mortgage accelerator programs and/or software tools, will enable you to achieve a financial freedom you might not otherwise attain with a traditional way of paying your mortgage.

Does This Sound Too Good To Be True

If you ever had that though then that is a valid concern. You see this method has been used extensively in Australia and New Zealand. Since it is now in the U.S most banks have been reluctant to show this method to their clients with good reason. They are bound to make less money if you pay off your mortgage early.

The best way to validate whether this may work for your situation or not, is to enter your numbers in a home mortgage accelerator calculator. Take a moment, use the home mortgage accelerator calculator that can be found on line, input your particular information, and you will see how this will benefit you in the long run. By saving on your interest payments and applying more money to the principal, you will be affectively accelerating your mortgage.

If we enter the following information in a calculator, where you have a $200,000 mortgage at a 6% interest rate and lets assume you earn $4000 and spend $3900 a month. It will not be uncommon for you to save over $45,000 in interest. If you invest $397 in a home mortgage acceleratorprogram you would get back over 22% return on your investment and I am being extremely conservative. And imagine the impact to your family where you can retire early or send your kids to school if your mortgage is paid off faster.

The Following Example Examine Home Mortgage Accelerator In More Detail

Assume you plan to move in the first 5 years. As you know than in the first years, your mortgage company charges you almost five times more in mortgage principal rather than interest. So if you decide to move in 5 years or refinance very little progress is made toward your mortgage balance.

Lets take a specific example to explain the situation above. Do you know if you have a $200,000 mortgage at 6% interest rate, you would end up spending almost 5 times more on interest than principal in the first 5 years? In this case you would spend $58,054 in mortgage interest and $13,892 in mortgage principal.

And now that you refinance or move the entire process repeats itself again. So a 30 year mortgage now becomes 35 years because after the first 5 years you start all over again. In 10 years you end up spending $166,000 in interest and $28,000 in mortgage principal. Almost no progress is made and now you are really working for your bank spending all your hard earned money on interest.

You dont have to let the banks take advantage of your situation and you can stop this vicious cycle

The banks expect you to pay mortgage interest and stack high interest payments upfront. One way to reverse this situation is to use the mortgage acceleration system. Enter your numbers directly in a calculator and see for yourself how you can pay the least amount of interest and slash your mortgage even though you plan to move or refinance.

What About The Home Equity Line of Credit (HELOC)

The HELOC is the most powerful financial tool for a homeowner. It functions as a checking account and enables you to pay off your mortgage faster without changing your lifestyle.

Lets examine some of the advantages of using a HELOC

Only pay interest when you actually use funds from HELOC. No interest charged to set up the facility

Unlike a line of credit a HELOC can be available for 10-15 years and easily converted into a new HELOC account

Additional costs may also apply to your line of credit, in addition to the interest and principal. These funds may be charged each time a transaction is placed or yearly. Also, beware of introductory offers and the time frame. Make sure you chose a HELOC with no additional costs. Most banks allow you to do this. As stated above, please research carefully

Lines of credit offer an advantage to you in that you dont have to borrow (and pay interest on) money you wont actually need if expenses are lower than previously anticipated.

HELOCs interest rates are generally lower than most lines of credit and depending on your Equity, have higher credit limits

HELOCs are tax deductible

A HELOC can also be used as an emergency fund. This is where you can reserve your extra cash for day to day spending or for emergencies, as state briefly above

What Are The Hidden Catches In the home mortgage acceleratorPrograms

1.Your Heloc May Be Frozen

The first thing to do is to find out why this happened. Banks sometimes slash the appraised value of your home using an automated valuation computer program and may freeze your HELOC. One way to overcome this is to have your home reappraised in order to prove exactly what your home is still worth. Asking for the funds to be unfrozen is an option but you may have to ask for a lower line of credit. If the bank still disapproves, as long as you have at least 20% in equity, there are many other institutions that will approve you. As an alternative you could use your credit card in place of your HELOC to pay off your mortgage.

2.Your mortgage broker may tell you, you have to refinance your mortgage

You need to once again, understand all your options completely. No matter what you choose to do, become as knowledgeable as you can in calculating your monthly expenses and what you need for the home mortgage accelerator system. Lenders are experts, and will try to tell you how much you qualify for. Many get excited that they are approved for $25,000 on your HELOC when in reality you only need $7,000 for the home mortgage acceleratorprogram. You should be the ultimate decision maker in making sure you only take whats required to make the program work for your situation. After all, your mortgage is one of your most important investments and in order to protect that investment, please keep yourself ahead of the game so you can avoid any pitfalls.

Other Ways You Can Use Home Mortgage Accelerator To Pay off Debt other than Your Mortgage

Once you experience the potential of a home mortgage accelerator program, you can then apply the same principles to any other debt, if that is your choice.

1. Pay Off Automobile Loans

Assume you have a car payment for 7 years. Instead of paying off the minimum each month you can use the HELOC and the mortgage acceleration system to pay off your car in about 4 years without changing your lifestyle and saving thousands. The home mortgage accelerator system works the same way you are scheduled to pay off your mortgage and only substitutes your mortgage for your car payment. Imagine having a freehold car with no payment.

Credit Cards

To eliminate your credit card, the best way is to borrow against your HELOC and pay off your high credit card balances. The mortgage acceleration system can help you to rapidly pay down the HELOC and completely eliminate the credit card debt.

The home mortgage accelerator system can be applied in various ways to help pay off your mortgage early and completely eliminate debts in other areas of your finances. Once you understand this system you will be able to apply this in multiple ways to completely live and enjoy a debt free lifestyle.

Imagine for a moment living free and clear from having a mortgage payment and retiring on your terms no matter your age. And the best part is that all your retirement funds are used to live your life to the fullest and not used to pay for debt. For me, this is my retirement dream. What is yours?