ViewedPages.com » Finance » Mortgage » Using a Mortgage Accelerator to Pay Off Your Mortgage in 10 Years

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

by: IgorBuces
Total views: 26 | Word Count: 481

With the current economical difficulties we are going through, we have to find ways to maximize the use of our money. To do so, you want to change the way you see money and how you can shift your habits to take advantage of every dollar you make.

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 common example is a mortgage. With a traditional 30 year mortgage, it takes 20 years and 2 months to come to the point where the portion that we pay toward the principal equals the portion we pay toward the interest.

If we take into consideration that the average American stays in their home for 5 to 7 years, they hardly make a dent in the principal of their home mortgage. In other words, the structure of the mortgage greatly favors banks because almost all of your initial monthly payments go toward paying the interest portion.

For over twenty years, people in countries like Australia, the U.K. and Canada have used mortgage accelerator programs to pay off their homes in 10-15 years saving an average of $150,000 on their mortgages. This type of programs is now available in the U.S.

A mortgage accelerator program works without making additional payments toward the mortgage. It works in 4 simple 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 then deposit your monthly income in the HELOC decreasing the balance on the HELOC. When you do this, you have your money working against your debt in the HELOC by saving on the interest you'll be charged.

3. You charge all of your daily expenses on a credit card to allow money to sit in the HELOC for as long as possible.

4. At the end of the month, you pay off the credit card before creating any interest charges from your credit card.

By following these simple steps, you start making sure that the bank's money is working in your favor and no the other way around. Using other people's money (the bank's) is one of the fastest way to become financially sound.

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?

About the Author

To find out more about how you can use 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 site where you can read information on how a mortgage accelerator works.

More Articles from: Mortgage

1: Lower Your Mortgage Payments With Mortgage Points
    (By: Dwitts, On: Nov 21st 2008, Words: 548, Views: 52)
2: 80/20 Combined Mortgage and Second Mortgage?
    (By: amandahash, On: Nov 16th 2008, Words: 521, Views: 51)
3: Build Equity By Refinancing Your Mortgage
    (By: Dwitts, On: Nov 14th 2008, Words: 494, Views: 28)
4: Using a Mortgage Broker
    (By: elink, On: Nov 14th 2008, Words: 290, Views: 35)
5: 80/20 Mortgage Loans To Save On Mortgage Insurance
    (By: Dwitts, On: Oct 31st 2008, Words: 520, Views: 37)
6: Second Mortgages Instead Of Cash-Out Refinancing
    (By: amandahash, On: Oct 5th 2008, Words: 516, Views: 35)
7: Dubai Mortgage Market
    (By: William King, On: Sep 21st 2008, Words: 409, Views: 37)
8: Save Thousands Of Dollars With Mortgage Refinance
    (By: Dwitts, On: Sep 16th 2008, Words: 546, Views: 34)
9: Mortgage Refinance: The Smart Choice
    (By: MKellett, On: Sep 2nd 2008, Words: 522, Views: 38)

ViewedPages.com » Finance » Mortgage » Using a Mortgage Accelerator to Pay Off Your Mortgage in 10 Years