Money BlogUsing a Mortgage Accelerator to Pay Off Your Mortgage in 10 Years

Jun

11th

Using a Mortgage Accelerator to Pay Off Your Mortgage in 10 Years

Files under business | Posted by Igor Buces

by Igor Buces

Given the present economical conditions, we have to find creative and proved ways to maximize how we use our money. In order to do so, we need to change how we look at money, and how we can shift our habits to use every dollar we make to our advantage.

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 typical example is the traditional mortgage. In a typical 30 year home mortgage, it’s not until the 20 years and 2 months mark that we make the same amount toward our principal that we do toward the interest.

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 by making sure that the bank’s money works for you at all times. It works in four basic steps:

1. At the start of the month, you use a piece of software to find out the optimal amount to pay toward your first mortgage to ensure you are paying as little in interest as possible. You use an advance line of credit (HELOC) to pay for this mortgage payment. This operation decreases the debt in your first home mortgage and moves you further down the amortization schedule.

2. You deposit your income in the HELOC reducing the balance on the HELOC. By doing so, you have your money working against your debt 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 takes some getting us to these changes, you can think about the alternative available to you; After all, how long and how much effort would it take you to earn the money you would be saving if you knew you could pay off your home mortgage in 10 to 15 years?

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To find out more about how you can apply a mortgage accelerator program to pay off your home in 10 to 15 years and save an average of $150,000 visit our mortgage accelerator website where you can find information on how a mortgage accelerator works.