Mortgage Pay Off Accelerator Strategies You Can Use Now:
When you first moved into your home it seemed like the ultimate dream
What better investment in your family than home ownership.
But as time goes on, we quickly realize at least 35% of our monthly salary and in some cases more goes towards paying off your mortgage each month..
There is nothing wrong with that except…
Most of your hard earn payments goes towards paying off mortgage interest rather than paying off debt.
And it could take almost thirty years and if you refinance along the way over 40 years to pay off that mortgage.
And let's assume you are approaching retirement.
Your mortgage could outlast your retirement years and then your kids are left with the financial burden of paying off your home.
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.
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 certainly is. This overview will show you how.
By this point you may only have one large debt.
Your mortgage.
No longer do you have to pay all the interest that will be accrued on a long term mortgage.
By applying and using a mortgage accelerator system, you will be able to slash your mortgage 10-12 years faster, reducing your interest burden without changing your lifestyle.
Sound financial management is good for anyone, regardless of income level. And what better way than to keep those hard earned dollars for yourself rather than paying this to the bank.
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 accelerator, this is the easiest way pay off your mortgage.
By definition, the mortgage accelerator sometimes referred to as the 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.
As interest on mortgages are compounded, early payments lower the years needed to pay off your mortgage which in turn avoids a certain amount of interest.
But most homeowners don't have extra money to pay towards their mortgage in the earlier years. So by using the mortgage accelerator it automatically allocates extra principal to your mortgage without you even realizing this.
It takes your monthly payment and automatically applies more of this to principal rather than interest.
By using the mortgage 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 the most important benefit of the 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.
Start by asking yourself:
Have you seriously thought about the amount of interest you pay on an average mortgage?
Thought about it hard enough to actually calculate yourself what it is really costing you?
Most likely not.
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 ever really crunched the numbers on the average mortgage, you would be amazed, and probably quite upset.
By taking a look at various examples of how the the mortgage accelerator program benefits you, it will give you a clear picture and understanding of how the mortgage accelerator program works and will give you an idea of how to apply the mortgage accelerator to your mortgage.
Let's Assume You Are In Your Early 20's and Have 30 Years To Retirement:
Assuming you are a young adult in your 20's and you buy a house.
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.
By using the mortgage accelerator, this same mortgage can be paid off in half the time saving you $80,000 in interest.
Instead of being in your 50's when your home is paid off, you will only be around 40.
You will now be able to use the extra cash you have each month to buy a 2nd home or an investment property.
You may even consider retiring from your corporate job at that point.
And let's assume you continue to use the mortgage accelerator program again to pay of your investment home?
You now have income for life.
Just think of all the things you could do with this extra income in later years.
Being financially independent at that stage in your life will enable you to explore life, cruises, exploring other countries, and the list goes on.
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.
And remember, you haven't changed your current lifestyle at all. You have not placed an undue hardship on yourself now.
Let's Assume You are In Your Early 40's
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.
By using the mortgage 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.
Using the same example as the $300,000 mortgage above, with the mortgage accelerator, you will still be able to have your home paid off by the time you are ready for retirement.
And let's assume there is a medical emergency. Building equity in your home allows you to use this as an emergency fund for your family.
Let's Assume Your Are 2 Years Away from Retirement Or Already In Retirement
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.
Let's take a look at the last year. The stock market fell. And as a result this has caused some pressure on your retirement investments.
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 causes you to have to work longer during 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 mortgage accelerator by simply knowing that you are protecting your future.
The knowledge that you will have one less debt to have in retirement by just accelerating your mortgage without an added burden on your wallet will make your daily life worry free.
Depending on how close or far away from you are from retirement, you could use the 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.
So How Does This Work And What Is The True Cost Of The Mortgage Accelerator
What's Required For Mortgage Accelerator Program
A mortgage acceleration loan program only needs a few requirements in order to get started.
- Real Estate has to be in your own name
- Ability to qualify for a Home Equity Line of Credit (HELOC)
- A valid checking account with a bank
- You have to have a more income to debt or don't spend more than you earn each month.
A 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 paydown the balance of the house cost.
The high 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 Accelerator Only For A Fixed Rate Mortgage?
A mortgage 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 accelerator program. And when your rate adjusts, you have more equity in your home at that point.
And here is the ultimate benefit. Assume you have a 5 year Adjustable Rate Mortgage. If your rate resets after 5 years, you would then end up taking another 30 year mortgage.
So you could end up taking 35 years to pay off your mortgage instead of 30 years.
With a mortgage accelerator program you could slash 15-20 years of the 35 year mortgage. Imagine the benefits of getting rid of that mortgage in half the time, without changing your lifestyle.
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 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 accelerator loan programs thus eliminating the need for a separate cost of a financial advisor.
As you know have more insight on the benefits of a mortgage accelerator program, the key is to get started immediately.
The more interest you save upfront the faster this accelerates the pay down of your mortgage.
How Do You Get Started With A Mortgage Accelerator?
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 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 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.
To start your plan, please make sure you have done some research, understand exactly how it works and any costs involved.
In this way, you will know that applying extra principal payments accelerates your mortgages.
Knowing and understanding this benefit to you, will keep you motivated to use the mortgage accelerator.
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 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.
An ongoing commitment to a the mortgage accelerator program is extremely important.
While the mortgage accelerator system itself can help you pay off your mortgage faster a 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.
these other methods do however require you have additional cash at the end of each month.
Alternative Methods To A Mortgage Accelerator
- A Bi-Weekly Program
- 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 make 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.
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 in 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, like the mortgage accelerator system; you will be making 1 extra payment a year.
- Pay Extra Towards Your Mortgage Each Month
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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 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 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 accelerator system, think about a service that can do this for you. The service you may use will be completely up to you.
Mortgage Accelerator Program
Keep in mind when looking into mortgage 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.
Most companies will sell software program and methods in order for you to control your mortgage and/or finances. Be aware that the mortgage 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.
There are some mortgage accelerator software programs that takes 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 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
Have 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 accelerator calculator.
Take a moment, use the mortgage accelerator calculator that can be found on line, input your particular information, and you will see how this benefit to you will work out 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 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, help your kids or grandkids go to college and imagine what you can do with the additional savings.
Now Let's Take A look at The Following Situation In More Detail
Let's assume you are planning to move 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.
Let's 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 4 times more in interest than principal.
Now let's say you refinance, your adjustable rate mortgage is due or you decide to move to a new home.
What happens?
The cycle starts all over again.
So in 10 years, assuming you refinance after 5 years, you pay close to $116,000 in interest and $28,000 in principal.
Just thinking about that makes me feel sick to my stomach.
And now remember because you refinanced you still have 25 years left on your mortgage.
Can you see what's going on?
Your mortgage is going to cost double what you originally set out to borrow in the first place.
And while it seems like no big deal, you will have to work for 4 decades to actually pay off your mortgage.
After all, this is the business the banks are in.
Making money.
It's now your turn to make money with the mortgage accelerator.
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 the investment.
Please use the mortgage 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 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.
A HELOC has many benefits more than just used for the purposes of the mortgage accelerator:
- A specific limit (which is usually the equity amount) enables you to borrow money only as it is needed. This is similar to a second mortgage.
- A line of credit may last for 10 to 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.
- Lines of credit offer an advantages to you in that you don't have to borrow (and pay interest on) money you won't actually need if expenses are lower than previously anticipated.
Also, you don't have to start paying interest on money until it is actually spent. When compared to conventional credit cards, HELOC's usually have lower interest rates but higher spending limits.
- At four to eight percent, interest rates will vary depending upon your credit limit, credit score and in some cases, other factors.
- Mortgage and HELOC interest paid money is tax deductible, in contrast to the traditional taxable savings account. If you are confused, 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 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.
- 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.
So what are the disadvantages of a Mortgage Accelerator Program:
- Your line of credit or HELOC may get frozen by the bank.
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.
- 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 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 accelerator program.
You should be the ultimate decision maker in making sure you only take what's 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 educated so you can avoid any pitfalls.
How Can You Apply The Mortgage Accelerator To Manage Your Finances Other Than Your Mortgage
Once you realize the earnings potential of a mortgage accelerator program, you can then apply the same principles to any other debt, if that is your choice.
- 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 the mortgage accelerator program, you could conceivably pay your vehicle off in under 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 toward your accelerated mortgage!
- Credit Card Debt
Using the mortgage 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.
And...once again, being able to apply even more to accelerate your mortgage.
As you can see, the possibilities could be endless with the mortgage 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 accelerator, every extra $1 added to your HELOC is applied to accelerating your mortgage debt.
When you plan to retire is entirely up to you. There are no rules that you must retire only at 65.
Retirement at any age is only the beginning of the next phase of your life and you are never too young to start planning for your retirement now.
The earlier you start mortgage accelerator program, the more positive cash flow you will have in later years. And this is critical step in securing a retiring early.
By taking this step toward financial freedom and applying a mortgage accelerator program in different aspect of your daily living, you could also be teaching your children the value of preparing for their retirement.
Who better to teach them than their father, mother, grandfather or grandmother. Or any family member that they look up to so that they never have to struggle financially with debt in their lives.
Maybe, just maybe, you can be responsible for a new era of sound financial planning by applying the principles listed here, that will make for a more stable economy for your children.
And they wouldn't have to experience what recession is or wonder if their jobs are stable.
You Do Not Have To Panic
To find how fast you can eliminate your mortgage debt without changing your lifestyle and retire rich, please go directly to Debt Payoff Accelerator and enter your information directly into the free mortgage pay off calculator, within 3.5 seconds it will reveal your savings for your specific situation.
Sign up below we will give you a valuable guide that reveals the steps to take, so that you can be on your way to achieving the mortgage freedom you deserve.
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