Mortgage accelerator programs seem to be getting all the press these days given what's going on in the market. The stock store has crashed and equity in your home is probably lost 40% of its value. Paying off your home is a good financial strategy to rebuild your wealth in this marketplace.Is a mortgage accelerator agenda the best strategy for you?There are many smart ways to pay off your mortgage fast and accelerate your mortgage payments. The primary methods includes spending extra from your paycheck to pay off your mortgage, refinancing to a lower rate and holding your payment same or using the biweekly mortgage accelerator program. All these methods require you to spend more for own pocket to pay off your mortgage faster.
The mortgage accelerator agenda that I'm referring to here is the law using a home equity line of reputation to pay off your mortgage faster. Sometimes this formula is referred to as mortgage acceleration, the mortgage accelerator formula or the mortgage checking list method.
Calculate Mortgage Interest
In a nutshell here's how the mortgage accelerator agenda works.
Let's assume you owing ,000 on a reputation card. And the interest rate and the reputation card is 13%. Now you have a second reputation card with a zero balance but the interest-rate is only 6%. Would you borrow money from the 6% interest rate card to pay off a 13% interest-rate reputation card? Of procedure you would, and by doing this you would save thousands of dollars in interest.
Borrowing money from a economy rate of interest to pay off a higher rate of interest is a financial technique called leverage.
This technique of leverage could be used in a mortgage accelerator program. When you use a home equity line of reputation (heloc) and deposit your paycheck at the beginning of the month and you pay your bills from this list at the end of the month, the heloc automatically charges your interest at a low interest rate. So for example if your heloc interest rate is 7%, by using it as a checking list it automatically drops to 3%.
Now the next step in the mortgage accelerator agenda is to borrow small amounts from the heloc and pay that directly towards mortgage principal. Commonly your mortgage rate is six or 7%. Borrowing small amounts from the heloc and automatically paying off your high rate mortgage, will automatically save you thousands of dollars. Just like the reputation card example above.
It is not uncommon using a mortgage accelerator agenda to slash 13 years off your mortgage and save over ,000.
Remember, the mortgage accelerator agenda is just one way of paying off your mortgage early.
The think why most of us are confused and we cannot elect the best mortgage payoff system, is not because this formula doesn't work, it's because the cost of using this formula could seem high and prevent you from taking action.
And you may be right in your assessment. I strongly advise that before you dismiss mortgage acceleration as one additional technique to pay off your mortgage, you should do some homework first and find out the best agenda that fits your needs.
Mortgage Accelerator program - Does This easily Work For You? Calculate Mortgage Interest
No comments:
Post a Comment