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
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 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 managed your debt so that expenses will be minimal at retirement.
And now the question is could you pay off your mortgage before you retire so that you get to spend time with the family and enjoying retirement rather than using your retirement savings to pay off mortgage debt?
Well I am excited to show you a new approach to this below.
We will make an assumption that your largest monthly bill is
Your mortgage.
You dont have to pay all the interest that is due on the mortgage.
By applying and using a Mortgage Free For Life Accelerator system , you will be able to slash your mortgage 10-12 years faster, reducing your interest burden without changing your lifestyle.
By applying the methods of the mortgage accelerator, this is the easiest way pay off your mortgage.
By definition, the Mortgage Free For Life Accelerator sometimes referred to as the Mortgage Free For Life 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 is compounded, early payments slashes the years needed to pay off your mortgage, which in turn reduces the amount of interest.
Most of us dont have the ability to make extra payments and have little wiggle room in our budgets each month. So this is where the mortgage acceleration steps in. Without spending more you can eliminate your mortgage payment.
It takes your monthly payment and automatically applies more of this to principal rather than interest.
And the biggest benefits of all, your mortgage could be paid off in less than 10 years. Imagine saving thousands.
This is the most important benefit of the mortgage accelerator.
With this extra cash, you would be able to put your kids/grand kids through college, or purchase a second property for investment purposes or just have the extra cash to enjoy during retirement.
What Are The Options Behind The Mortgage Free For Life Accelerator and How Does This Work?
Whats 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 dont spend more than you earn each month.
Will The Mortgage Acceleration System Only Work With A Fixed Rate Mortgage?
A Mortgage Free For Life Accelerator method can be applied to an interest only mortgage, an adjustable rate mortgage, and a biweekly mortgage payment as well.
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.
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.
Once you fully understand the benefits of the mortgage acceleration program, one suggestion is to get started immediately. Interest accumulates over time and the faster you are able to accelerate the pay down of the mortgage, the earlier your mortgage could be paid off.
Alternative Methods To A Mortgage Free For Life Accelerator
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.
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
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 Free For Life Accelerator Systems
Keep in mind when looking into Mortgage Free For Life 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.
So what are the disadvantages of a Mortgage Free For Life Accelerator Program:
1.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. As an alternative you could use your credit card in place of your HELOC to pay off your mortgage.
2. Your Loan Office May Inform You That You Have To Change Your Home Loan…To Discover More click on the links below.
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