This is a common question. Mortgage Acceleration is another
option for financing your home to be considered alongside other
conventional options. To learn why MA really isn't
all that unbelievable, see the following question in addition to the
Risks of Mortgage Acceleration" section.
Why haven't I heard of this before?
- This is a valid question. Any time you hear an amazing claim
that asks you to evaluate a major financial decision, you are
wise to ask these questions as sometimes the
answers will reveal the claims are not what they seem. That said,
there are several reasons we believe MA is just now
rapidly gaining popularity.
- First of all, understand this: the goal of MA is to utilize
mathematical advantages of certain mortgage
structures in order to give the big banks less interest and to
give yourself more of that money to pay down your house.
Understandably, banks would not want to promote something that
decreases their interest revenues. Big banks would like to see you
in a stable debt at the highest possible safe amount for as long
as possible. That's how they make money. As such, banks, and their
subsidiaries are not eager to promote this. Even so, we anticipate
larger institutions will begin to promote this as they will be
forced to cater to increasing market demand.
- MA concepts actually HAVE been used for about 20
years in other countries. A large percentage of the
population in Australia uses MA concepts to finance their homes.
Some experts hypothesize that the general attitude regarding
mortgage debt in those countries is more mature than that of
Americans. Statistically, Americans do not have strong savings
habits or predispositions to pay down debts. In other words, as a
country, we have not been "ready to hear" the message of MA until
it becomes too loud to ignore.
- Only in the last several years have certain companies begun to
make that message louder. We applaud the MA pioneers for their
efforts. Now there is momentum in the MA
industry. This creates familiarity, which is the first step in
- Finally, consider the birth of any unprecedented
invention, such as hybrid cars, internet commerce
sites, or the electric razor. It took some time, but the value of
these items was recognized, even if a decent percentage of the
population does not use them. From that stage, the inventions grow
to a level of national awareness. For MA, it's not a matter of if,