"Mortgage Reduction Accelerator" - Why You Can Now Afford To Spoil Yourself A Little More And Still Become Debt Free

Can you remember when you moved into your first home? How did that feel?

A home is the best gift and investment any family can have.

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.

There is nothing wrong with that except

Most of your payments go towards paying off mortgage interest rather than paying off principal.

If you decide to refinance or move to another home your 30 year mortgage automatically now becomes a 40 year mortgage. For most of us it could take up to four decades to pay off the mortgage.

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.

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

You have managed your debt so that expenses will be minimal at retirement.

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

Your mortgage.

You dont have to pay all the interest that is due on the mortgage.

The mortgage reduction 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.

A leading financial magazine has conducted a survey on debt. It shows that almost 83% of American homeowners are in debt with the mortgage their biggest debt.

And when they approach retirement 35% of them still have over 20 years left in mortgage repayments.

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

Mortgage Acceleration is the quickest way to eliminate mortgage debt without you changing your lifestyle.

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

The fastest way to pay off your mortgage early and reverse the payment of interest is to apply extra payments each month to your mortgage.

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 biggest benefit of the mortgage acceleration system.

With this extra cash it is not uncommon for you to buy a second property and earn a second stream of residual income for life. And just imagine not only do you eliminate debt but now have more money in retirement.

Here is where I would start:

Have you seriously thought about the amount of interest you pay on an average mortgage?

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

Everyone knows that interest is the bulk of your monthly payment the first few years, which is in favor of the lien holder. And no one disputes it. It is considered normal business procedure. But if you have crunched the numbers on the average mortgage, you would be amazed, and probably quite upset.

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

Lets Assume You Are In Your 20s and Have 30 Years To Retirement:

Lets assume you have a 30 year fixed rate mortgage. The value of your mortgage is $300,000. If your interest rate is 6%, you will end up spending at least $347,514 over the entire life of your mortgage in interest payments alone.

More than what you have borrowed on the mortgage.

By using the mortgage reduction accelerator , this same mortgage can be paid off in half the time saving you $60,000 in interest.

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

One of your goals may be to pay for your kids college education

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

By using the mortgage reduction accelerator system, you can pay for their education using the equity in your home to supplement their college education fees.

This eliminates the need for the kids to apply for student loans, which forces them in debt after graduation.

Now that you may have taken on more debt to fund your kids college education you could use the mortgage acceleration system to repay this debt. The double benefit is that you can still retire with no mortgage payment.

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.

What if You are In Retirement Or Close To Retiring

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

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.

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.

And the result is painful. You get to spend less time with your family and more time with your finances.

You may be in a position where you dont have to worry about making the debt payments. But imagine what you could do if you did not have the debt going into retirement. You could change someones life and help out your family.

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

So How Does This Work And What Is The True Cost Of The mortgage reduction accelerator ?

Your home must be in your name and you are the owner

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

Your total expenses for the months is less than or not more than your monthly income

A mortgage reduction 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 mortgage reduction accelerator Only For A Fixed Rate Mortgage?

A mortgage reduction accelerator system is not only for fixed rate mortgages. If you have an adjustable rate, in many cases, you could pay off your mortgage faster with the mortgage reduction accelerator program. And when your rate adjusts, you have more equity in your home at that point.

We all know that a fixed rate mortgage adjusts after a period of time. So lets assume you have a seven year adjustment on your ARM. Now lets say you refinance to a 30 year mortgage. So it will take you 37 years to pay off your mortgage assuming you dont move or apply for a new ARM. With the mortgage acceleration program you could end up paying off that mortgage in 15 years instead of 37 years. Imagine the saving for yourself.

And the benefits are the same for an interest only mortgage. Imagine the ability to pay off an interest only loan in under 30 years.

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 reduction 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 reduction accelerator and you get the benefit of using a fairly simple system, eliminating the need for consultations.

How Do You Get Started With A Mortgage Reduction Accelerator ?

STEP 1: Starting Point

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.

Having a plan is also one of the best ways to know you are on track to eliminate your mortgage debt, and if you ever fall off track you can always get back on target easily.

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

The best way to eliminate your mortgage is to first set a date you want your mortgage fully paid off. Once you have this in mind, enter your information in a mortgage reduction accelerator calculator and a mortgage acceleration plan will automatically be calculated for you. In this way you can decide whether the plan meets your goals or you want to use other means to accelerate the payoff of your mortgage.

An ongoing commitment to a mortgage reduction accelerator program is extremely important. While the mortgage reduction accelerator system itself can help you pay off your mortgage faster without spending more of your own funds or changing your lifestyle, there are other ways you could consider to accelerate the pay down of your mortgage.

Ways To Eliminate Your Mortgage Early

1. Biweekly Mortgage Payoff System

A bi-weekly program is a common way to pay off your mortgage faster. With this unique program you make 26 bi-weekly payments a year. This results in you making 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 mortgage reduction accelerator system; you will be making 1 extra payment a year.

12. Pay Extra Towards Your Mortgage Each Month

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 Reduction Accelerator Systems

Keep in mind when looking into mortgage reduction accelerator programs; they may be referred by different names. For example, Mortgage reduction, interest reduction, equity accelerator, mortgage checking account, money merge account and debt reduction just to name a few.

When evaluating the various choices of mortgage acceleration programs for your situation, you will come across various pieces of technology to help you with the mortgage acceleration system. I would caution you at this point to consider any mortgage acceleration program based purely on the software to help you pay off your mortgage early. Software is a critical component, but if your HELOC is not set up correctly and you chose the wrong HELOC account balance for your situation, then you may have a challenging time paying off your mortgage on time. The set-up is more critical than the software itself.

There are some mortgage reduction 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, mortgage reduction 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.

Did You Ever Think That This System Sounds 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.

One way to get comfortable with this technique is calculate the numbers yourself. Enter your information into a mortgage acceleration calculator and you will find out whether this works for your situation.

For example, let's use the same example as above but this time you have a $200,000, 30 year mortgage, with a 6% interest rate. If you can afford the fee of $397 to set up the mortgage reduction accelerator program you can save over $64,000 in interest. You can get over a 460% return on your investment. Ask your financial advisor to run the numbers and you can judge for yourself whether this works or not. Who wouldn't like to accumulate money at this fast pace? And, you are not changing your current lifestyle, but are helping your kids or grandkids go to college and imagine what you can do with the additional savings.

The Following Example Examine Mortgage Acceleration 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.

What happens when you have a $200,000 mortgage at 6% and you decide to move to a new home at the end of 5 years or refinance? In the first 5 years, you spend $58,054 in interest and $13,892 in principal. So if you plan to move again then 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.

Its time to take back control with the mortgage acceleration system

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.

The Home Equity Line of Credit (HELOC) is the Key Step To Mortgage Acceleration

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

Certain HELOC have no closing costs and transaction fees associated with using these accounts

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

Interest paid on your HELOC is tax deductible

In the event of an emergency, you could borrow the funds directly from your HELOC at a very low interest rate

What You Must Know About The Mortgage Reduction Accelerator Program

1.Your Heloc May Be Frozen

Due to the credit problem in the market banks may automatically value your home and freeze your HELOC limit. This is automatically done by the banks computer system. If your HELOC is automatically frozen you get an appraiser to revalue your home and ask for a second valuation. In this way you can get your HELOC unfrozen. As an alternative you could use a credit card to pay off your mortgage faster.

2.Lenders will try to influence you to borrow more or change 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 mortgage reduction 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 mortgage reduction accelerator program. 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.

How Can You Apply The Mortgage Reduction Accelerator To Manage Your Finances Other Than Your Mortgage

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

1. Pay off Car Loans

Many times new vehicles are financed for 7 to 10 years. Just think, if you apply the same principle as the mortgage reduction 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

Using the mortgage reduction accelerator you could completely eliminate your credit card debt using the same methods to pay off your mortgage faster. This will put an end to high interest charges on your monthly credit card bills.

There are numerous ways in which the mortgage reduction accelerator can work for you. We have just listed a few ideas above and once you begin to apply the mortgage acceleration program you will begin to see how this system can be applied to other areas of debt management. Not only will it eliminate debt but save you thousands.

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?