Why It Works
Despite the fact that banks keep most of your hard earned money when you make mortgage payments, there are a few options they provide that they say will help you pay off our mortgages faster. Neither of these options come close to the results you will get with our software. These options include payment frequencies which refers to how often you make your mortgage payments. Lets explore some of these options below but let me remind you that these options may not be beneficial in the long run as they can be tedious and can incorporate refinancing which opens a new door to added expenses and loss of equity.
Option 1 - Bi-Weekly Payments:
Interest savings are minimum with this option as it is not a sophisticated technique. The best it can offer is to match the payment days to your paydays. You make payments twice a month by dividing your payment in 2 equal payments. How it effects the mortgage payoff is, you pay half of your payment in the first two weeks of the month so the interest only accures for two weeks on the first half of the payment and for four weeks on the other half of the payment. This way you may end up saving a little bit interest on the first half of the payment. This is the only saving you get.
Option 2 - Accelerated Bi-Weekly Payments:
This is a little better than the bi-weekly payments. In this option, you pay every two weeks but not twice a month. If a month has 5 weeks you will end up paying 3 bi-weekly payments that month. There are 2 months in a year when this happens and you end up making two extra bi-weekly payments which equals one full extra payment which is directly deducted from your principal balance.
Option 3 - Short Amortization Period:
With a shorter amortization period, you basically pay a much bigger monthly payment which in turn reduces your mortgage faster. This can be suitable when you know you will be making the money every month for sure to make the huge monthly payments. In the present economy, this would be considered a privilege but is very risky if you lose your job or get a pay cut.
Option 4 - Extra Payments:
Banks allow you to make extra payments every year up to a certain amount. People choose to make a lump sum payment or just make double payments in addition to their existing payments. This may not be possible for eveyone since not everyone have the means to save or acquire extra money every month. There is always a penalty for exceeding the pre-payment amount for the year.
Option 5 - HELOC:
HELOC stands for Home Equity Line Of Credit. This is sort of a refinance in which the bank will pay off your mortgage and give you a line of credit for the amount you owe on the mortgage but the balance will be charged to this line of credit. You will be required to pay down that line of credit until it is paid off and then you will be debt free. This could take upto 30 years depending on the interest rates and you may not realize the benefits. There are several disadvantages to this option. Firstly, the interest rates change everytime there is a change in the prime rate. HELOCs don't have the usual adjustment cap and can go up to 15 to 20% depending on the inflation. You could have a fixed rate on a HELOC but if it was created during inflation, you could suffer from a huge monthly payment. Besides the above, you will have to qualify for it like you would for any other loan and in the future, with a huge line of credit, you may not qualify for any other loan i.e car, credit card, business loan, student loan e.t.c.
After exploring all of the above options lets show you why our software really works and provide you a better option than the banks.
Our Software offers you the following benefits:
- Does not require you to refinance your mortgage
- Our system is not a bi-weekly payment plan
- You will not be required to assume a new loan
- You will not be required to consolidate your loan
Our mortgage freedom software is a user friendly application that guides you every step of the way and shows you how you can save thousands of dollars in interest and lessen the amount of time required to pay off your mortgage. It will enable you to create your own mortgage pay off plan and provide guidance for you to follow this plan systematically with clear instructions and timelines. You will be able to see how many years it will take you to pay off your mortgage and how much money you will save in interest by way of complex calculations and graphical representations of time lines.
Our software will create a financial roadmap, taking into account your income, expenses, debts, savings (Positive Cash Flow), line of credit, credit card and discipline to show you how you can make your hard earned money work harder for you. You will be required to create your own personalized pay off plan by inputting the correct or exact numbers in the software (no approximates or guessing) for your fixed and variable expenses as well as your income. You can use the Your Lifestyle Snapshot to prepare you for this. Once you generate your personalized pay off plan, it will only take 15-20 minutes per month to manage the plan. Every month you will input your expenses and income to calculate your savings for that month. If for any month you have a bigger or unforeseen expense, enter it as it is in the system and similarly, if you get some extra money in a pirticular month, enter that as well. The system will take that information in account and determine how much cash flow you had that month to give you a realistic dollar amount to pay towards your mortgage that month.
You will see best results in 24 months if you follow the program as prescribed because it takes that much time for you to see the savings and to substantially increase the amount of money you pay towards the principal to reduce your mortgage balance. We guarantee you that at the end of the 24 months you will pay off a substantial amount of money towards your mortgage compared to what you will without the program or we will give you your money back twice.
That's right! You have our Double Money Back Guarantee!
Click "Calculate Your Savings" to see some examples of how you can pay off your mortgage in 7-15 years. |
