8 Kasım 2007 Perşembe

What is Mortgage Acceleration and How Does it Work?

Imagine buying your new home, getting a 30 year mortgage, but being able to pay it off in 4.6 years. This is exactly what is happening to Marilyn R. of Atlanta, Georgia. Marilyn is one of the early adopters of a revolutionary mortgage acceleration program that is beginning to change the lives of many Americans. As a result of her decision, she will save about $146,000 of interest on her home and become mortgage FREE after 4.6 years, which is less than a car loan.
In the next 4-5 years the concept of mortgage acceleration will change the landscape of home ownership. Do you know what it is? Are you ready to take advantage of it?
So, what is Mortgage Acceleration or MA? Mortgage acceleration is speeding up the process of paying off your home loan. By using the MA concept, home owners can shave 10, 20 or even more years off their 30 year mortgage without any change to their spending habits.
Some of you are familiar with a few forms of mortgage acceleration already. The Bi-Weekly payment plan will save you around 7 years from your 30 year mortgage. The Debt-Roll-Down plan, which requires a debt consolidation and refinance, can save you about 12 years.
Recently, more aggressive mortgage acceleration concepts have made its way to the US from the UK and Australia. These new models are as revolutionary to the 30 year mortgage as the word processor was to the typewriter; the difference is night and day. In fact, the average Australian pays around $100,000 to $150,000 less interest on similar home purchases than the average American who does not use a MA tool. Studies show that 25% of home owners in the UK and 33% of home owners in Australia are using some form of mortgage acceleration programs. In the US, less than 1% of Americans are using these highly aggressive mortgage acceleration programs.
So, how does mortgage acceleration work? Explaining the MA concept in detail can seem as complicated as writing computer codes. But applying the concept takes no more technical prowess then it does to operate your personal computer. Now for those who are mathematically and financially inclined, you may contact me for explicit details on how MA works through my email: abe@investorcoach.net Here is a quick overview of how mortgage acceleration works. Most mortgage acceleration program work by allowing the income from the home owner's wages to be applied to a special account which offsets the interest of the 1st mortgage. Each month, when the paycheck sits in this special account before it is spent to pay bills and expenses, it reduces the interest on the 1st mortgage. Since the income deposited into a checking account usually earns 0% interest, having your income sit in the special MA account that saves you thousands of dollars, makes total sense.
A word of caution: There are mixed reviews from various media sources. A few critics expressed concern that not everyone will be responsible enough to follow their MA plans. Don't let this discourage you. Some of these media sources have not experience the MA concept themselves nor have they interacted with individuals who have. Think about it, if opening one account and using it can save you thousands of dollars, would you stop using it.
United First Financial, who promotes one of the more developed MA programs available, states that of their initial client base, 97% are still on their MA program and many are ahead of their scheduled payoff date.
This is a list of a few MA programs:
United First Financial......................www.RapidLoanPayoff.com
Sydney Financial.............................www.SydneyFinancialGroup.com
CMG Financial.................................www.cmgfs.com
MacQuarie Mortgages.....................www.macquarie.com
As more home owners and investors discover the power of mortgage acceleration, many are choosing to use MA to help them achieve their dreams of becoming debt free. Your home mortgage is your largest debt. If you can eliminate this debt, then you will alter your retirement goals and how you plan for your future.
Abraham Xiong is a real estate mentor and an accomplished author on real estate investing strategies. He is the founder of InvestorCoach.net which is a company focused on training investors and helping them transition into real estate as a full time career. If you have any questions about real estate investing or how mortgage acceleration works, feel free to contact Abraham through his web site http://www.InvestorCoach.net or by phone at 404-932-2111.

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