The banks don’t want you to know a technique you can use to help pay off your mortgage early and in the process save thousands, if not hundreds of thousands of dollars.
Basically, the bank charges you interest on your mortgage every day and naturally, the sooner you pay on that pricipal it’s going to reduce the amount of interest the bank makes off of you. So, in addition to making your regular monthly payment, you will make a larger payment at intervals during the year to reduce your principal.
Will this work for everyone? No. The software will, but you need an open ended loan account and the most common is a HELOC (Home Equity Line of Credit) or by using your own cash should you have between $8,000 to $10,000 available. In this day of savings accounts paying under 3% it may "make" you more money by utilizing this mortgage reduction technique. And you need to have an income where your income exceeds your monthly expenses, but it doesn’t have to be by much.
That’s where mortgage accelerating software can be extremely helpful in determining the interval and the amount you should pay towards your mortgage. Most people that are familiar with this type of software typically think it is very expensive to purchase. However, that’s not the case as there are affordable programs that will work very well.
Mail this post
January 22nd, 2009 at 7:48 pm
[...] payment plan which is essence is a forced way to make one extra payment a year, and on average will accelerate the pay down of a 30 year mortgage by seven [...]