(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. |