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How does Mortgage Acceleration work?

(in this section, Mortgage Acceleration will be referred to as "MA")

What Mortgage Acceleration IS NOT:

  • MA is not about a bi-weekly payment program.
  • It is not paying one extra payment on your house per year.
  • It is not about adding $50 to your payment each month.
  • It is not about doing an adjustable rate mortgage and investing the savings.
  • It is not about the presentation that convinces you MA is real.
  • It is not about software that helps you budget.
  • It does not ask you to spend more money than you are currently spending.
  • It is not a miracle solution that works for everyone.
  • And most importantly, it is not a new, farfetched idea that is too good to be true.

What are the potential results?

Compared to a bi-weekly payment program, the average mortgage acceleration program allows you to completely pay off your home roughly twice as fast. This means instead of paying off your home in 23 years with bi-weekly payments, you could pay it off in 12. When discipline is applied to any good MA program, the results are truly unbelievable.

In general, why and how does this work?

There are many different systems available claiming to help you accelerate your mortgage. The best thing about MA is that most of these systems will actually accomplish what they claim. The deciding factors are twofold: the strength of your qualifications upon entering the program and your ability to use the program with discipline. Though different systems exist, they generally achieve the same results by taking advantage of similar principles.

It begins with a question. Have you every really thought about how much interest you pay to the bank on the average mortgage? I mean have you ever REALLY thought about it to the point where you calculated how much a mortgage REALLY cost you? Probably not? You do, however, probably know that interest is front-loaded in the favor of the bank, and you most likely accept it as a fact of life. But if you have ever really crunched the numbers on the average mortgage, you would be amazed, and probably quite upset.

You would find that your 30 or 15 year fixed mortgage is not really fixed! That’s right! A 30 year fixed mortgage may offer you a fixed payment and a fixed interest rate, but due to the amortization schedule, the rate at which you pay interest is completely dependent on how and when you pay down or pay off your mortgage. If you fall into the average demographic and sell or refinance your home every 5-10 years, you are not paying the actual interest rate that is on your mortgage note. You are paying much much more!

Don’t believe it? Do the math. If you have a 6% 30 year fixed mortgage, and you sell or refinance in about 7 years, what do you think your actual interest rate would be? Calculate it. The truth is that if you stay in the average cycle of getting a new loan about every 7 years, the actual interest rate you are paying to borrow that money is over 50%!!! I know this sounds unbelievable, but please, take the time to do the math and you will see. With that in mind, mortgage acceleration will become more believable. All MA proposes to use simple tactics to effectively lower that disgusting interest amount. We can never eliminate paying interest, but we can greatly reduce it if we understand how it is used. This is at the heart of MA.

How do I start learning about it?

Because of MA’s paradox of complex simplicity, it is important to study it until it “clicks.” For some, this is 1 minute, for others it is one year. Consider the fundamentals of MA and then move on to more detailed education as you need it.

Real mortgage acceleration began decades ago and involves a simple concept: taking the bank’s interest advantage or “secret” and using it to your own benfit. If the average mortgage was going to pay the bank $300,000 over the next 30 years, MA simply shows you a way to restructure your finances to pay them only $100,000 over the next 10 years. The banks still collect their money. They just collect a lot less of it from interest. Considering the average mortgage pays them over 50% interest, this is not that hard to imagine.

The bottom line is you pay less interest, thus paying off your home more quickly. Don’t worry. This website will allow you to delve deeply into the details of MA. It can sometimes be difficult to understand even for financial professionals. It is very helpful to have repeat exposures and visual aids. Those tools and that education are available here on this site.