Mortgage Equity Accelerator, Discover How You Can Retire Mortgage Free

When you bought that first home it felt as if was a dream come true.

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...

Do you realize that your hard earned paycheck is applied towards mortgage interest making the bank rich?

And before you even realize it you are set up to pay for your mortgage for a lifetime. It could take anywhere from 30 to 40 years to repay the mortgage debt.

And lets assume you are approaching retirement.

Your mortgage could last longer than your retirement and then your kids get to inherit your home. But wait they will inherit the mortgage on your home and will be burdened with this as well.

Their much anticipated inheritance could well turn out to be debt.

So what if you have worked hard, saved and been extremely responsible with your finances?

Living debt free is the ultimate retirement dream. Is there a way to do this without changing your lifestyle or spending more of your cash?

There certainly is. This overview will reveal how to accomplish this.

By this point you may only have one large debt

Monthly repayments to your mortgage.

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

By applying and using a mortgage equity accelerator system, you will be able to slash your mortgage 10-12 years faster, reducing your interest burden without changing your lifestyle.

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

Less than 5% of Americans are able to actually retire financially independent.

One way to become financially independent is to eliminate your largest debt, your mortgage.

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

Mortgage acceleration is a term used to accelerate the pay down off your mortgage faster than that is shown in your mortgage amortization schedule.

As interest on mortgages is compounded, early payments slashes the years needed to pay off your mortgage, which in turn reduces the amount of interest.

You may not have extra payments each month as you may want to invest this or use this for personal spending. By applying the mortgage acceleration system it is a smart way of making more of your payments to principal and ends up paying your mortgage faster, all without paying more.

It takes your monthly payment and automatically applies more of this to principal rather than interest.

Your mortgage could be halved and you could end up with thousands of your own money back in your own hands.

This is the most important benefit of the mortgage equity 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.

Start by asking yourself:

Have you asked your broker or banker how much you are scheduled to repay on your mortgage over the entire 30 year term?

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.

By reviewing the following examples, you will get a better understanding of how mortgage acceleration could work for your situation.

Youre in Your Late 20s and Just Bought Your First Home:

Your mortgage is a 30 year mortgage with a pay off amount of $300,000. At 6% interest, you will be paying $347,514 in interest at the end of 30 years.

More than what you have borrowed on the mortgage.

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

Now, you can completely eliminate your mortgage before you reach 40.

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

Once your mortgage is paid off, that could represent financial independence and could be the starting point for an early retirement.

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

Heres the best part. You dont even have to change your existing standard of living at all.

Assume You Have a Family and You Are Currently in Your Early 40s

Lets assume you want your kids to have a debt free college experience and you planned on paying for your kids college fees.

Assume if you kids financed their way through college by taking out loans. Imagine what their life would be like once they finished college.

Using the equity acceleration system you can finance their education using the equity in your home.

Imagine the gift of a debt free college experience at graduation.

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 mortgage acceleration 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

If you are already close to or at retirement age, the silent threat to your retirement is making a mortgage payment while you are in retirement. Imagine using your retirement funds to pay for debt.

If you had all your funds invested in the stock market last year, you would see that your retirement nest egg slashed by almost half.

And if your nest egg is worth less than a year ago and you are drawing less funds in retirement, and still have a mortgage to pay, you may then have to take on a second job and worse, sell your existing place and move to a more affordable home.

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

And though you may have your finances in order and have enough saved away, still eliminating mortgage debt is one of the smartest moves you can make. And remember you can do this without changing your lifestyle.

You can accomplish your individual goals as fast as you like with a mortgage acceleration program. You are not are not restricted as to how long or quick you can eliminate your mortgage debt.

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

Real Estate has to be in your own name

Ability to qualify for a Home Equity Line with ease or have an existing line in place which you can use to transfer your paycheck and make payments

You have to have a more income to debt or dont spend more than you earn each month.

The key behind the mortgage equity accelerator is the HELOC. The HELOC is used as a means to do your monthly banking. Your income is transferred to the HELOC and all your bill payments are made directly from the HELOC. This is one way your mortgage payoff is accelerated.

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.

Would I Only Be Able To Accelerate My Fixed Rate Mortgage?

A mortgage acceleration program can work for most types of mortgages for example ARM and an interest only mortgage.

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 mortgage equity 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.

Assume you have an interest only mortgage and scheduled to make minimum payments. Do you know that an interest only mortgage takes 40 years before it is fully paid off? Heres why. The first 10 years are interest payments only. Once your interest only mortgage resets then you may take out a 30 year mortgage. It takes 40 years to pay it off. A mortgage equity accelerator can help you slash off this interest only mortgage by 20 years without changing your lifestyle.

And heres what could happen when your mortgage is fully paid off in retirement. You could borrow from your home equity in the case of retirement emergencies and the worst case, you end taking on a reverse mortgage. The reverse mortgage will give you the option tap into additional cash if ever you run out of retirement funds.

When using the mortgage equity accelerator program there is no need to pay excessive fees for financial advisors to explain this to you. Most of the check and bill payment features are included in the mortgage equity accelerator and you get the benefit of using a fairly simple system, eliminating the need for consultations.

What is The Best Starting Point For The Mortgage Acceleration Program?

STEP 1 Getting Started

The first thing is to create a quick financial plan based on your unique numbers. This may very well be the biggest obstacle in applying a mortgage equity accelerator to your mortgage. You may think it will take forever to develop a plan but it won't. You can keep it simple, yet accurate. A mortgage equity accelerator plan usually takes into account your income, bills and mortgage and comes up with the ideal way to pay off your mortgage in 10 years.

A mortgage equity 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 The End Goal " When You Want to Be Mortgage Free

The date is the starting point behind how fast you want to pay off your mortgage. You could then readjust the plan based on whether you have extra cash available at the end of each month or that you are comfortable with the mortgage acceleration plan without you spending more money.

mortgage equity accelerator is just one way to pay off your mortgage faster without spending more of your own funds. Other methods are also available to help you with early mortgage payoff.

Alternative Methods To A mortgage equity accelerator

1. Biweekly Mortgage Payoff System

This is the most common way to pay off your mortgage faster. This is a simple plan because, instead of making one monthly payment, you will make half of your mortgage payment every 2 weeks. As there are 52 weeks in the year, this enables you to pay 26 bi-weekly payments. This calculates out to one extra payment a year. Doing it this way, you don't realize you have spent any extra cash.

Tip: Depending on your financial institution, your bank may not be able to accept bi-weekly payments. The best way to overcome this is to transfer bi-weekly payments to a savings account and pay the mortgage bill at the end of each month. At year end you will end up with one extra payment in your savings account which you should designate to mortgage principal.

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 Mortgage Equity Accelerator Systems

Mortgage acceleration can sometimes seem confusing and can be referred to by different names. Some names that are used are Equity Excelerator programs, fast equity, money merge account, fast mortgage reduction.

Most companies will sell software program and methods in order for you to control your mortgage and/or finances. Be aware that the mortgage equity accelerator is more than just a software program. What is extremely important is the way you set up the program before you use any software. Within the various software programs, are options available that are able to keep you on the budget you choose by keeping track of the exact amount of cash in and cash out. These programs can tell you down to the penny where your money is or where it went. The only problem with maintaining the software yourself is you would have to input all information yourself. Another way discipline comes in handy. The software will do you no good if you don't enter the information.

The software choices are quite different for mortgage acceleration based from excel spreadsheet to sophisticated tracking and analysis. When choosing software, the ones that have the least or almost no data entry will be the most effective type for your situation in the long run. The less data you have to capture on the software and the less work the more chances you have to take action and succeed.

Does This Sound Too Good To Be True

Have you ever been the slight bit skeptical on whether mortgage acceleration actually works? If it is possible to pay off your mortgage without changing your lifestyle or spending more then why isnt everyone doing it. Well this concept has been around for over ten years and thousands have been using this in Australia and New Zealand. Just recently this has caught on in the U.S.

To eliminate any hesitation you may have, the best method is to enter your numbers into a mortgage equity accelerator calculator. Once you enter your numbers you can see the math at work first hand for your situation.

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 mortgage equity accelerator program 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.

Lets Take A look at The Following Situation In More Detail

Lets assume you are planning to move and you want to refinance on your home or your adjustable rate mortgage is about to reset. You are actually paying more in interest than you think. That's because the bulk of interest that you pay is more at the beginning of your mortgage than at the end. Since it is the banks first priority to make a profit first on the money they lend you. So if you refinance or move on your home every 5 years almost all your money goes towards mortgage interest.

Lets assume you had a $200,000 mortgage. At the end of the first 5 years, you would pay close to $58,054 in interest payment, and $13,892 towards mortgage principal. Almost 5 times more in interest payments than principal. Now lets say you refinance, your adjustable rate mortgage is due or you decide to move to a new home. What happens?

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

Banks have created the mortgage amortization schedule to work in their favor. They front end load interest payments that gives them the highest return on their investment. Using a mortgage equity accelerator calculator you can input your numbers and see first-hand how to plan to take back control.

Lets Turn Our Attention To The HELOC

The main reason why you can pay off your mortgage faster without spending more is due to the HELOC. The HELOC now becomes your new checking account and turns the entire method into a system which enables you to pay off your mortgage earlier.

A HELOC has many benefits more than just used for the purposes of accelerating the payoff of your mortgage.

You can set the limit on your HELOC. Usually only a small balance is required for mortgage acceleration and interest is calculated on a daily balance

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 generally allow you to have a larger borrowing limits and lower cost of interest

Interest paid on your HELOC is tax deductible

A HELOC can be set up as an emergency fund. And the best part is you pay no interest on this except when you draw on the funds in an emergency

What Are The Hidden Catches In the Mortgage Equity Accelerator Programs

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 may be requested by your bank or lender to borrow more than your need for the mortgage acceleration program. Though this may serve your lender interest it is not in your best interest. The best is to make sure you only use the HELOC solely for the purposes of paying off your mortgage, not to fund other purchases.

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

There are different uses for the mortgage acceleration program. Here are some of them:

1. Payoff Motor Vehicle Loan

Many times new vehicles are financed for 7 to 10 years. Just think, if you apply the same principle as the mortgage equity accelerator program, you could conceivably pay your vehicle off in 3 years. Now, consider a step further. Your vehicle will still be in very good condition when you pay it off early. But, assume you pay off your vehicle off early and then apply the same payment to your mortgage. Not only will you pay your mortgage faster. It will disappear in record time. This flexible income could be used for other expenses as well or be allocated to purchase another vehicle when needed. The extra cash plus your trade in will make a substantial down payment, which in turn, will create a smaller monthly payment. And....the difference can once again, be applied towards accelerating the pay down of your mortgage.

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.

As you can see, the possibilities could be endless with the mortgage equity accelerator. Once you begin to visualize the various ways in which you can apply this to your situation, you will begin to understand the true power of this system. Just a few ideas and suggestions have been listed here for your review and benefit. Once you decide to reorganize your mindset around the mortgage equity accelerator, every extra $1 added to your HELOC is applied to accelerating your mortgage debt.

The mortgage equity accelerator is the ultimate retirement planner. You can set your retirement date and use this system to figure out when you would like to retire debt free or without a mortgage. You are in control. Your retirement can be set for any age and you dont have to work for the rest of your life to pay for that huge mortgage debt.