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Article By: IgorBuces
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Using a Mortgage Accelerator to Pay Off Your Mortgage in 10 Years
For instances, many of us are ok with getting very little return on our money by having it sit in a checking or saving account with very little return. By doing this, the bank is the one making use of our money and getting richer in the process.
Another clear example is a home mortgage. In a regular 30 year mortgage, it's not until the 20 years and 2 months mark that the principal portion of the payment equals the interest portion.
Since the average American only stays in their home for 5-7 years, they barely make a dent in the principal of their mortgage. In other words, the structure of the mortgage heavily favors banks because almost all of your monthly payments go toward the interest portion.
For over two decades, homeowners in countries such as the U.K., Australia and Canada have been using mortgage accelerator programs to pay off their mortgages in 10-15 years saving over $150,000 on payments. The good news is that this type of program is now available in the U.S.
A mortgage accelerator works without having to make any additional payments toward the mortgage. It works in the following way:
1. At the beginning of the month, a piece of software will tell you the optimal amount to pay to your 1st mortgage to ensure you are paying as little interest as possible. The money for this payment will come from an advance line of credit (HELOC.) This transaction reduces the debt in the 1st mortgage and moves you further down the amortization schedule.
2. You then deposit your monthly income in the HELOC in order to reduce the balance on your HELOC. By doing so, you decrease the interest paid in the HELOC.
3. You charge your daily expenses on one credit card to allow your money to sit in the HELOC for as long as possible.
4. At the end of the month, you pay off the balance in your credit card with money from the HELOC and therefore avoiding interest charges from your credit card company.
By doing these few changes, you can start making the bank's money work for you for once and no the other way around. Using other people's money (the bank's funds) is the way many millionaires have become financially independent.
Even though it may take a little to get use to the changes, you can think of the alternative; After all, how much time and effort would it take you to make the money you would save if you could pay off your mortgage in half the time?
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To find out more about how you can use a mortgage accelerator program to pay off your home in 10-15 years and save an average of $150,000 go to our mortgage accelerator site where you can find information on how a mortgage accelerator works.
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