"Mortgage Free Accelerator" - Why You Can Now Retire 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.

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.

There is nothing wrong with that except...

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 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 what happens when you are closing on towards those retirement years?

Your mortgage could outlast your retirement years and then your kids are left with the financial burden of paying off your home.

Their much anticipated inheritance could well turn out to be 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?

There is a smart way out. And I will reveal this to you in this article.

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.

By applying and using a mortgage free 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.

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

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

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

By definition, mortgage acceleration is the practice off accelerating the pay down of your mortgage in record time and changing the time it takes to pay off your mortgage principal.

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

By using the mortgage free 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 biggest benefit of the mortgage acceleration system.

By living debt free in retirement you have the option to travel and set the way for your kids to follow your good financial habits. They never have to work just to pay off debt.

Here is a question I would consider when starting off:

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

Below, you will understand why you need to ask yourself this important question.

As soon as you have done the calculation you will find that your mortgage amortization schedule works against you. It is set up in favor of the banks, where they end up collecting interest upfront. This is considered acceptable lending practice by your mortgage company and once you see this, you will soon find out why you end up working for the bank your entire life.

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

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

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 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 will now be able to use the extra cash you have each month to buy a 2nd home or an investment property.

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.

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 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.

Imagine the gift of a debt free college experience at 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.

And lets assume there is a medical emergency. Building equity in your home allows you to use this as an emergency fund for your family.

Lets Assume Your Are 2 Years Away from Retirement Or Already In Retirement

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

Last year was an extremely difficult time for the stock market especially if you are an investor.

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.

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.

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 free accelerator Program In Order To Get Started?

Your Property needs to be in your personal name

Ability to qualify for a Home Equity Line of Credit (HELOC)

Your bills do not exceed your income for the 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 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.

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 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 free 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.

When you pay down the mortgage before retirement your home becomes an emergency fund. You could end up taking out a reverse mortgage in the event you need to supplement your retirement income. And the only way to do this is to make sure you have enough equity in your home.

Financial planning and check writing features are now being incorporated into many mortgage free 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 accelerator program, the key is to get started immediately.

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

STEP 1: Starting Point

A personal plan is always the starting point for the mortgage acceleration system. You can figure out how to slash you mortgage debt and what it would take for you to accomplish this goal. You can create one yourself or you can seek some guidance. Any acceleration plan should take into account your income, bills and mortgage information.

A mortgage free 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:

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 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.

mortgage free 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.

Different Ways To Pay Off Your Mortgage

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.

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 free accelerator system; you will be making 1 extra payment a year.

Contribute More To Mortgage Principal Each Month

The second method of paying off your mortgage is to pay extra to rapidly reduce your mortgage principal. One way to do this is to have a budget in place to save extra money each month to spend towards your mortgage. Other ways typically include using overtime funds, bonus or your paycheck from a second job.

Types of Mortgage Acceleration Programs

Keep in mind when looking into mortgage free 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.

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.

If you plan on selecting the appropriate mortgage acceleration system that has the right software, there are usually two types of software. The first type is where you have to enter detailed information each month and it calculates your information and keeps you on track. You are the slave to the software system. The second type of software is where you only enter one piece of information and it automatically does all the work for you. You are the master and it takes you less than 30 seconds each month. The less data entry, the easier it is to manage the program.

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 mortgage free accelerator calculator. Take a moment, use the mortgage free 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 mortgage free 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 Find Out How The Mortgage Acceleration System Can Benefit Us By Taking A Closer Look At The Following Example

If you decide to move or refinance in the first five years of your mortgage, this may work against you in the long run. The banks amortization schedule is set so that you end up spending more on interest than mortgage principal in the early years. So if you plan to move most of your money is spent on mortgage interest and the entire cycle starts again.

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?

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 whats 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 free accelerator.

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 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.

Here as some of the benefits of the HELOC

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

You can avoid the payment of HELOC interest where your salary deposited into the HELOC is more than your bill payments

Also, you dont have to start paying interest on money until it is actually spent. When compared to conventional credit cards, HELOCs usually have lower interest rates but higher spending 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 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

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 Free Strategy

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.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 free 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 free 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.

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. Pay off Car Loans

A car payment can be easily eliminated with a mortgage free accelerator. You can use the method of the HELOC to rapidly payoff your car payments without spending more or changing your payments. In this way your car can be paid off early and imagine having the ability to have the extra cash flow which you could now use to accelerate the pay down of your home.

Credit Cards

Using the mortgage free 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 free 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.

The mortgage free 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.