Is it really possible that you can pay off a 30-year mortgage in less than 10 years...
...without refinancing...
...without necessarily increasing your total monthly expenditures...
...and without debt consolidation?
Yes, it is! Thousands of home owners have learned that it can be done!
This may seem to be too good to be true at first, and you may not easy accept what we share with you here; because we're all conditioned accept the status quo. The banking industry truly doesn't want you to know our method. They would rather that you pay your mortgage payments over a long period of time, so they can maximize their profit, at your expense.
In this article, we're going to spill the beans, and reveal some of the secrets the banking industry has been keeping from us far too long!
If you want to pay off your mortgage as fast as possible, it benefits you a great deal to find a way to put extra funds toward the outstanding balance as soon as possible. But to do this doesn't mean you have to spend more than you already spend per month. It's actually the method of payment that will save you the most money! And we're talking about huge savings!
Where do the extra payments come from?
Even a little extra money paid in the beginning pays huge dividends in the long run; because the huge interest charges early in the loan really cause whirlpools in the bottom line! Most home buyers aren't aware that they can easily lower their interest cost, and apply a lot more to the principal instead. Far too many home buyers fail to make the simple corrections! Although once we see the significance of paying down the principal, and follow our proven method, they get on track to pay off their mortgage very early; often in as little as 8 1/2 years.
Front-Loaded Interest: A Big Reason You Haven't Been Able To Pay Off Your Mortgage Quickly
If you take a look at your mortgage amortization table, you'll discover something very interesting. I'll just lay out the facts for you here, using the example of a $150,000 30-year fixed-rate mortgage at 6% APR.
In the first year of your mortgage, you pay $10,791.96 (12 monthly payments at $899.33), and a whopping $8,949.89 of that goes to the bank for interest, NOT the principal.
That's a whopping 82.93% of your payments that went to interest... flushed down the toilet, and into the banks' pockets. That's your hard-earned money going bye-bye, since it doesn't pay off your loan at all!
Of your first year payments, only 17.07 % applies toward the real problem - the principal, that stands in your way of paying off your loan.
The sad thing is, even though you paid $10,791.98 on your $150,000 mortgage, the principal still stands at $148,157.98.
That means that the equity you'd have in your home would be $1,842.02. You “invest” $10,791.98, and get back only $1,842.02. (That's an effective interest rate of over 500% in that first year.) To come up with that number, we must understand that we paid close to $11,000.00 to end up with a measly $1,842.00 in equity. Yikes! The effective interest charged by the bank reducing the bottom line to such a dismal level is astoundingly high!
This is a prime example of how your bank front-loads the interest during the first years of your mortgage. And to make it worse, most people sell, or refinance, within the first 5 years of their mortgage, making the front-loading even worse for the borrower. It helps them squeeze every dollar out of you when you start all over again.
In fact, the only way that a 6% interest is ever 6%, is if the borrower actually stays with the mortgage for the full term (30 years, in our example). Only a very small fraction of homeowners actually do this. If you sell or refinance at any time before the maturity of your mortgage, the effective interest rate you end up paying is usually much more than 6%.
So, How Do We Pay Off Our Mortgage Quicker?
It's simple. Turn the tables on the bank! We've shown you how they front-load the interest. Now you know what thousands of people who are already paying off their mortgages early have learned: find a way to pay a larger portion of each payment toward the actual debt. Oh yes, it's easy to do!
But there's another problem.
The banks have ways of keeping this information from you. They're just not going to share any secrets, because it would hurt their bottom line. So they they've laid out a minefield to make it very difficult for the home-buyer to reverse damaging trend of front-loading.
But take our word for it: there is a way, - a method - to legally, and easily, maneuver through this minefield, and pay off your mortgage in a fraction of the time. Thousands of home buyers have learned what you can learn with us, and are already doing something about it!.
Mortgage acceleration--true mortgage acceleration--is the key to success!
