Mortgage Free For Life Accelerator Payoff: The Benefits Banks Don't Want You TO Know About
When you bought that first home it felt as if was a dream come true.
A home is the best gift and investment any family can have.
The only challenge with owning a home is the huge monthly mortgage bill. On average we spend 35% to 40 % of our paycheck towards the monthly mortgage bill.
That’s perfectly acceptable but…
…Do you realize that your hard earned paycheck is applied towards mortgage interest making the bank rich?
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 what if your are extremely close to retiring.
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.
You have managed your debt so that expenses will be minimal at retirement.
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?
There is a smart way out. And I will reveal this to you in this article.
We will make an assumption that your largest monthly bill is…
Monthly repayments to your mortgage.
You now can eliminate the significant amount of the interest payable on the mortgage debt.
Using the method of mortgage free for life acceleratorn , you could save thousands in interest and pay off your mortgage at least 13 earlier, without spending more or refinancing.
Recent Survey conducted by a personal finance magazine shows that 80% of homeowners have their mortgage as one of their largest 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.
One way to become financially independent is to eliminate your largest debt, 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.
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.
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 reverses your monthly payment to your mortgage. Instead of your money being applied to interest, the banks automatically apply more towards your principal whilst keeping the payment the same.
By using the mortgage free for life accelerator , a typical mortgage can be paid off at least 13 years sooner, thus saving the homeowner tens of thousands of dollars and not having to change their way of life.
This is how mortgage acceleration can be applied to your situation and change your financial life.
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 a question I would consider when starting off:
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.
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 20’s and Have at least 40 Years to Retirement:
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.
Isn’t it interesting you have to pay back more than you initially qualified for on your mortgage.
Now, you can completely eliminate your mortgage before you reach 40.
You can now apply for a second mortgage, and buy a home which you can rent out and earn a steady stream of income each month.
Just imagine, with no mortgage you could think of opening your own business and on your way to an early retirement.
The thought of enjoying the benefit of everything you worked long and hard for, in your later years will make you healthier in the long run by being stress free.
Remember we do this without changing our current lifestyle or having to make any sacrifices in the way we live.
Assume You Have a Family and You Are Currently in Your Early 40’s.
Let’s assume you want your kids to have a debt free college experience and you planned on paying for your kids’ college fees.
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.
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.
Let’s Assume That Retirement Is Rapidly Closing In
Do you know what is the biggest threat to your retirement? It’s 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.
Now if your retirement savings are worth less, then you need more money in retirement to pay debt and live off your retirement savings.
And you can not completely rely on social security. You may need to cut back spending time with the family and figure out ways to supplement your retirement income.
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.
Depending on how close or far away from you are from retirement, you could use the mortgage free for life 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 Are The Options Behind The mortgage free for life accelerator and How Does This Work?
What’s Required For mortgage free for life accelerator Program
- Your Property needs to be in your personal name
- Ability to qualify for a Home Equity Line of Credit (HELOC)
- You have to have a more income to debt or don’t spend more than you earn each month.
A mortgage acceleration program works with a Home Equity Line Of Credit (HELOC). Your paycheck is deposited into the HELOC and typically all your bill payments are made from the HELOC. This HELOC acts as a new checking account to accelerate the payoff of your mortgage.
The Home Equity Line of Credit is the driving force behind the rapid pay down of the mortgage. The HELOC is a means of helping you save mortgage interest and in turn use this mortgage interest saving to rapidly pay down mortgage principal, all with you changing your spending habits and the need to refinance.
Will The Mortgage Acceleration System Only Work With A 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 don’t 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 free for life 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 mortgage free for life 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 mortgage free for life 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 mortgage free for life accelerator program , the key is to get started immediately.
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 free for life 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 free for life 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.
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 The End Goal – When 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 free for life 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 free for life accelerator program is extremely important. While the mortgage free for life 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.
Different Ways To Pay Off Your Mortgage
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.
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.
2. Contribute More To Mortgage Principal Each Month
Deciding on a surplus or second income can be a way to pay off your mortgage rapidly. By deciding on using the money from overtime, bonus or a second job is a viable alternative to paying off your mortgage faster. The key to success when using this approach unlike the mortgage free for life accelerator system is discipline. When you pay extra each month you have to discipline yourself to stick on this path to ensure success. With a mortgage free for life accelerator , the system works for you even when you are not disciplined. If you don't think you are disciplined enough but still want to pay extra towards your mortgage without using a mortgage free for life accelerator system , think about a service that can do this for you.
mortgage free for life accelerator Program
The choices of mortgage free for life 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.
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 free for life accelerator software programs that take care of this for you without any of the detailed entry and input. You don’t 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 free for life 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
Has the thought ever crossed your mind that this method of paying off your mortgage faster without changing your lifestyle or paying extra sounds too good to be true? The concept of paying your mortgage off early has always been around. It started off ten years ago in Australia and New Zealand and the concept has been around for a long time. It is only recently gained acceptance and awareness in the U.S.
The best way to validate whether this may work for your situation or not, is to enter your numbers in a mortgage free for life accelerator calculator. Take a moment, use the mortgage free for life 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.
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 free for life 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.
Let’s 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.
If you refinance, the cycle starts all over again. So in 10 years you can expect to pay $116,000 in interest and $28,000 in principal. And while this may seem just like a normal mortgage payment you could spend close to 4 decades before your mortgage if fully repaid. Imagine spending all that time and money on mortgage repayments.
You don’t have to let the banks take advantage of your situation and you can stop this vicious cycle
Banks know that a large percentage of people do sell their home every few years or default on their mortgage. The process of heavy interest payments at the outset gives the bank their return on loaning you money. Making it far less likely they, not you, will not lose on their investment. Please use the mortgage free for life accelerator calculator so you can see for yourself, how this can impact your situation. The calculator lets you input all the scenarios listed here, so you can make an informed and intelligent decision.
What About The Home Equity Line of Credit (HELOC)
One of the key steps behind the mortgage free for life accelerator program is that you need to have a HELOC to make this system work. A HELOC now replaces your existing checking account and is used as a means to pay off your mortgage early. When using the HELOC you are not borrowing any more money to pay off your mortgage. You are just using this as a means to deposit your funds, withdraw your bills and pay off your mortgage early.
Here as some of the benefits of the HELOC
Only pay interest when you actually use funds from HELOC. No interest charged to set up the facility.
- HELOC can be fully paid at any time and the time limit could be as high as 10-15 years
- 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.
- You can avoid the payment of HELOC interest where your salary deposited into the HELOC is more than your bill payments.
- HELOC’s interest rates are generally lower than most lines of credit and depending on your Equity, have higher credit limits.
- Mortgage and HELOC interest paid money is tax deductible, in contrast to the traditional taxable savings account. Let's say you are in a 25% tax bracket and have a HELOC which is tied to prime + 1 (=6%), the interest you pay is 4.5%. But, if you are earning 4%, you will get a 1.5% return on your HELOC. This is where using the mortgage free for life accelerator calculator will be beneficial to your situation. Please check your state to see if a HELOC is accepted there. Texas does not recognize HELOC.
- 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 You Must Know About The mortgage free for life accelerator Program:
Your HELOC Limit Could Get 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.
Your Loan Office May Inform You That You Have To Change Your Home Loan
2.Lenders will try to influence you to borrow more or change your mortg...age.
