In recent times, mortgage accelerators have become very popular in different countries such as Australia, UK and Canada. With this type of programs, you don’t pay any extra money toward the mortgage but end up paying your mortgage in 10-15 years.
By paying off the mortgage early, you can save an average of $100,000. You can use the saved money for more productive ends: pay your children education, fund your pension plan, etc.
Because of all of its advantages, this program is becoming very popular in the U.S. too. It allows you to make the best use of your money so that you keep most of it. It also provides you with a sense of direction by knowing that you are in the financial path to economical security.
In a mortgage accelerator program, you use a Mortgage Checking Account (MCA) which is basically a home line of credit. You use this line of credit by leveraging ALL of the unused “stagnant” money in your checking account every day of the month.
As you deposit money into your MCA, those funds are automatically applied on a daily basis toward the balance of your home mortgage. When you do that, the mortgage balance is reduced and the amount that is used to calculate your daily interest expense on your mortgage is also reduced. This translates in large savings over a long period of time.
At the same time, you can get money from the line of credit to pay your regular expenses. In the meantime, the money in the line of credit is reducing the interest accumulating on your mortgage.
By using a highly advanced piece of software, you can know the specific timing and amounts for each transfer required to produce the quickest payoff time and highest interest savings possible for your mortgage.
Since your life is not fixed, the software also allows you to see different scenarios adapting to the changes in your life. It also let you know about the result of buying large ticket items such as cars and tells you the best way to pay for the item so that you stay on track with your mortgage.
Many people are starting to seriously consider this type of programs. To do so, you just need to talk to a specialist who can give you an individualized detail picture of you financial situation while helping you to set everything up.
Learning about mortgage accelerator programs may take some time. However, how mush is worth to you to save over $100,000 on your mortgage?
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