Pay Off Mortgage Early And Save Interest $$$

Pay Off Mortgage - Mortgage Amortization Secrets

2008-03-17T11:42:00.000-07:00

We all know that putting extra payments down is going to pay off your mortgage faster and save you money. But what not everyone knows are the little insider tips that allow you to know to the penny, EXACTLY, when to use them to pay off your mortgage, how much to make them in, and exactly what you'll save as a result.

See, it's really NOT about how many you make, or how often, or even how much you make them in. When you're trying to pay off your mortgage faster their is only one thing that matters.

Timing.

You see mortgages are structured pretty creatively. Mortgage companies tell you that you're only paying the 5-7% rate, but they never explain what that really means. Our mortgage payments are almost completely wasted on interest at the beginning of our mortgage. This is what makes it so difficult to pay off your mortgage.

What it means is that a $4000 payment may only $250 of principle. The entire rest of that payment goes to PURE INTEREST. It's basically burning a hole in your pocket when it should go to pay your mortgage off.

Now, here's how to beat it. If you make a $250 principle payment on its own... right before you make the $4000 payment then guess what? You just completed that entire payment without wasting $3750 on interest. You moves you amortization down the line to pay off your mortgage. Sure, you'll still have to make a $4000 payment, but you pay your mortgage off $3750 earlier and it only cost you $250! That's how banks think.

If you could get $3750 for every $250 you put in, how many times would you do it? As many as you good and you wouldn't just pay your mortgage off, it'd evaporate.

If this doesn't quite make sense yet then grab a copy of your amortization schedule or The Mortgage Loophole Report and analyze how they'll pay off your mortgage. You'll see.

So...

Catch #1 - If you make a small prepayment at the beginning of the term, you'd pay off your mortgage MUCH earlier than you would by making a bigger principle payment at the end of your mortgage.

When you put the money in at the end you don't even pay your mortgage off as fast or save near the amount of interest because most of your payment is going to principle anyway. As you pay off your mortgage they weaken. Your mortgage pay off time literally depends on this.

So, the secret to pay off your mortgage is to understand the way a mortgage amortization has been structures to accommodate certain methods to pay off your mortgage.

Catch #2 - Although you probably realize that this information is important to pay off your mortgage you probably won't be able to apply it the the extent that you wish you could. Honestly, if you had all the extra cash to pay off your mortgage with, then you'd have made a bigger down payment on your home. It's not until most of us have already been trying to pay off our mortgage that we start to get the extra cash to put towards the pay off.

There is a solution.

There is a "mortgage loophole" that home owners are finally realizing and using to pay off their mortgage. It truly is a revolution in the mortgage industry to help people pay off their mortgage. Don't expect your local bank to tell you about it. They not only don't want you to pay off your mortgage early but they haven't been spreading the news among their mortgage brokers.

Anyway, I'd better stop upsetting banks with this insider information. Hopefully you can apply this information to pay off your mortgage immediately before your mortgage begins to amortize.

Also, if you truly want the keys to pay off your mortgage lightening fast and save big bucks, then grab your free copy of The Mortgage Loop Hole Report - Homeowners save over 84% interest with it and pay off their mortgage over 7x faster.

It's powerful stuff for anyone attempting to pay off their mortgage faster.

The 6 Methods To Pay Off Your Mortgage Faster

2008-03-17T11:39:00.000-07:00

There are only 6 ways to pay off your mortgage early and if you don't know them, you'd better be ok with leaving tens of thousands, sometimes even hundreds of thousands, of dollars on the table.

Now, some of these are great, some are not so great. It just depends on your financial situation and how badly you want to pay off your mortgage.

Regardless of your situation, however, there is always a way to pay off your mortgage that will work for you.

The 6 Methods To Pay Off Your Mortgage:

1 - Use the "Mortgage Loophole Report" that has recently been publicized (report info below)

2 - Get a biweekly payment plan (it may not sound like much but it actually will pay off your mortgage quite well)

3 - Make an additional payment to principle each month (the most common way to pay off a mortgage)

4 - Refinance to a 20 or even 15 year loan (the mortgage payment will increase but it'll get the job done)

5 - Make a lump sum mortgage payment to the principle (maybe with a Christmas bonus you get)

6 - Last on the list is to refinance at a lower rate. Your payment will be lower and you'll have more money to pay off your mortgage with. You probably get a million calls a day about refinancing, but I wouldn't recommend it unless you can see both mortgage pay off amortization schedules and total interest paid on both. You'll learn why in the Mortgage Loop Hole Report.

Before ever choosing which method that you'll use to pay off your mortgage you need to have a firm understanding of not only what the current sacrifice is but also of how much it's actually going to help you pay off your mortgage and cut interest.

Usually, the decision comes down to your family's future and your family's lifestyle. Ask yourself the following questions:

Do you have a retirement set up?

Do you have money for your kid's college?

Do you want/need a new car?

Do you or your spouse want to vacation?

And most importantly, how much money do you want top save and when do you want to pay off your mortgage?

If you're truly serious about saving money and want to pay off your mortgage fast, you'll find the perfect option.

Although this is just a basic overview of methods to pay off your mortgage, I've written several reports that go into further detail on these.

Also, if you truly want the insider secrets to save big bucks and pay off your mortgage lightening fast then check out "The Mortgage Loophole Report"

- People save over 84% interest and pay off their mortgage 7x faster when implementing the techniques on the report.

Ben has written The Mortgage Loophole Report that you can find at http://BankingAndMortgageSecrets.com. People have been saving 84% mortgage interest and paying off their mortgage 7x faster after implementing the things in the report.

Mortgage Amortization - Learn To Save 84 Percent Interest With An Effortless Method

2008-03-17T11:36:00.001-07:00

There is a major misnomer in mortgage amortization that is costing Americans billions of dollars every year, and if you understand it, you can save tens of thousands of dollars every single year. The mortgage amortization deception is perpetuated by banking industry to maximize their profits and they have been very successful at it.

To understand this, let's start by looking at how they calculate interest in mortgage amortization. You see, there is No such thing as a 'fixed' rate. In fact, the rate is MUCH higher for most of us. Even if the mortgage amortization schedule shows a 'fixed' monthly payment, and the rate they tell you is fixed, it is still an adjustable rate that intentionally blocks people from becoming debt free and stretches out the mortgage amortization far longer then they ever should.

Let's see exactly what happens with a $150,000 30 year mortgage amortization at only 6%

Simple calculations will show that 82.9% of your payments go to interest in the first year. Your rate changes and adjusts according to the amount of principle that is owed. This is incredibly important to understand in order to take advantage of the mortgage loop hole to restructure your mortgage amortization.

After 15 years, $160,000 has been forked out in payments (MORE THAN THE ORIGINAL LOAN AMOUNT) and yet 71% of the mortgage is still owed!

Even if you held the loan for 19 years you'd still be paying about 50% interest on every mortgage payment.

Finally, after 21 years of debt you'd be... half way through your mortgage amortization. You'd have paid $226,800 and only $75,000 went to your principal balance in 21 years.

I think it's fair to say that lenders have the mortgage amortization numbers a little bit skewed in their favor. That's certainly no accident. It's called mortgage amortization front-loaded interest and it stinks. The 6% interest rate ONLY applies if you keep the loan for the entire 30 years. It's a little deceptive. Banks know that people keep their mortgage amortization up for an average of 5-7 years.

Why do we do this? We see a half a percent lower interest rate and the full mortgage amortization looks good so we refinance. The effective interest rate shows us that by refinancing the above mentioned loan after 5 years gives us a 107% interest rate! No joke.

Can you see how foolish we are when we sell our home for more then we bought it, stopping the mortgage amortization and we think we're making a profit!? Or even worse is when we refinance at a lower rate thinking that we are saving interest? Then we go right back to another mortgage amortization and start over.

They've got people running in circles and burning holes in our pockets. Our home is no longer an investment in any sense of the word. Mortgage amortization is an enormous wealth sucking liability.

If we knew the mountain of mortgage amortization we had to climb, we'd either give up... or get dynamite. Well, you're going to learn to use dynamite, legal mortgage amortization dynamite.

First, you'll need to see how the mortgage loop hole timing concept works. This is what nobody understands about mortgage amortization, and you can utilize it effortlessly by following The Mortgage Loophole Report while it's up. People save 84% interest with their mortgage amortization when they implement the things that are in that report.

THE 6 Ways To Pay Off Your Mortgage Early

2007-12-15T12:11:00.000-08:00

I know, you wish you didn't have to put that mortgage payment in the mailbox each month.

So what if you could take that mortgage payment and put it into your pocket instead? Well you can and I'll show you how.

The bottom line is this, if you aren't trying to pay off your mortgage early or adjust your mortgage payment you're leaving MEGA-BUCKS on the table.

There are really only 6 ways that you can make a mortgage payment that will help you pay off your mortgage early. Some are good, some are not. It really just depends on your financial situation and how much you're willing to sacrifice.

Regardless of your situation there is ALWAYS a method or two that will work perfectly for you.

So here are your options:

The 6 Ways To Pay Off Your Mortgage Early:

1 - Take advantage of the 'mortgage payment loop hole' that has recently been uncovered (free
report below)

2 - Use a biweekly mortgage payment plan (doesn't seem like much but works well)

3 - Make an additional mortgage payment to the principle each month (3% rule)

4 - Refinance (I know you probably have a million lenders calling you EVERY day about this one) at a lower rate and keep the monthly mortgage payment the same

5 - Make a lump sum mortgage payment to the principle (maybe with a salary bonus you get)

6 - Refinance to a 15 year mortgage (the mortgage payment increases but it gets the job done)

The most important thing to remember about choosing a mortgage payment to pay off your mortgage early is to understand what it will do for you financially in the future, and then to be able to compare that to what the mortgage payment method is doing to you financially right now.

Often, making the decision on which mortgage payment method to use comes down to your family and lifestyle. Ask yourself the following questions before deciding which mortgage payment method makes the most sense for you.

- Do you have a retirement set aside?

- Do you have a college fund for your kids?

- Do you need/want a new car?

- Does your spouse want to go on a vacation?

- HOW MUCH MONEY DO YOU WANT TO SAVE AND HOW BADLY DO YOU WANT TO

PAY OFF YOUR MORTGAGE EARLY???

It may seem hard to choose which one of these mortgage payment options will work best for you, but if you're truly serious about taking control of your financial life it won't be tough.

This is just an overview of all the mortgage payment methods that pay off a mortgage early, but

I've written several articles on these methods that you can look up if you want to go into detail on a certain method.

How To Pay Off Your Mortgage 2x Faster

2007-12-15T12:10:00.001-08:00

Want to have a mortgage free life?

There's a simple way to pay off your mortgage, save tons of interest, and it's very easy to do.

See, right now, the majority of your mortgage payments are going to interest. To pay off your mortgage you'll need to make sure your payments are going to the principle.

If you lower the principle on your mortgage now, instead of throughout the duration of the term, you’ll save tons of money and pay off your mortgage at lightening speed. You're going to have to pay that principle on your mortgage one way or another, but why pay all the interest with it?

But when and how often?

To successfully pay off your mortgage 2x as fast pay the principle on your mortgage... each month. Simply pay a little extra money into your mortgage payment each month.

Paying off your mortgage early is really like making an investment. No, you don't ever get the money back directly, but you will reap the rewards later, in interest savings and debt free living.
BUT, HOW MUCH EXTRA DO YOU PAY TO YOUR MORTGAGE?

You don't want to pay more than you have to, but you do want to pay off your mortgage as fast as possible. The easiest method to pay off your mortgage this way is to simply calculate 3-4% of your monthly mortgage payment. That 3-4% will then become the amount of extra money that pays off your mortgage faster. It's your principle payment.

To do this all you have to do is take an extra check of whatever 3-4% happens to be, and make a note to your bank that you want the additional money applied to the principle on the loan.

This shouldn't put too much extra stress on you, but it can help you to pay off your mortgage MUCH faster.

WARNING: you must write 'for prepaid principle' on the extra check. If you don't the bank will just count it towards next month's payment and you won't pay off your mortgage ANY faster.

The REAL Mortgage PrePayment Insider Secrets

2007-12-15T12:08:00.000-08:00

Everyone knows that making mortgage prepayments to the principle pays off your mortgage faster and saves you money. But, not everyone knows this little insider tip that allows you to know to the penny EXACTLY how to pay, when to pay, how much to pay and what it will save you as a result.

See, it's really NOT about how much or how many mortgage prepayments you make as it is when. You see mortgages are structured very... creatively.

They tell you it's only a 5-7% interest rate, but what does that really mean. Our mortgage payments go almost ENTIRELY to interest at the BEGINNING of our mortgage.

This means a $400 mortgage payment may only knock off $25 of principle. THE REST GOES

TO PURE INTEREST. You're basically burning your money.

BUT, if you made a mortgage prepayment of $25 to the principle instead... just before you made the $400 mortgage payment... guess what? You just made your payment without the interest. You still have to make the same $400 payment but you'll save yourself the other $375 of interest down the road! You have $375 in your pocket and it only cost you a measley 25 bucks.

That's a GUARANTEED 1500% return on an investment through mortgage prepayments.

That's exactly what mortgage prepayments are; GUARANTEED investments.

If this doesn't quite make sense yet just get a copy of your amortization schedule. You'll see.

Now, here's the catch... the key is to understand the way a mortgage is structured to accommodate mortgage prepayments. It means that you can make very small mortgage prepayments to the principle at the beginning of the mortgage and save WAY more than you would have if you made to mortgage prepayment at the end.

Understand that if you make mortgage prepayments at the end of your mortgage you're not saving much because you're not paying much interest at that point any way. As your loan amortizes out, your mortgage prepayments become less and less effective. The interest you save utterly depends on this timing.

Catch #2: You've probably already realized by now that although this information is absolutely important to know, it may not be so practical for your situation. You see if you had all the extra money to make mortgage prepayments with in the first place you would've just made a bigger down payment on your home, right? I know... It's not until later in our mortgages when most of us begin to accumulate the extra cash to make the mortgage prepayments with and by that time it's not worth much. You may be better off investing it.

Well, there's a solution.

There is a "mortgage loop hole" that home owners are beginning to take advantage... The revolution of mortgage prepayments. There's more information out there on the net about this, but as of now it's kind of top secret. I'd love to get into more detail but I can't just publicly talk about here (look me up). I promised Santa I'd be a good boy for Christmas and not give away the banks most closely guarded industry secrets anymore. You'll have to find more information about it somewhere else.

As for me I'd better stop (wink, wink) upsetting banks and financial planners out there who charge big bucks for this information. Hopefully I've been helpful enough so far, and have given you some information that you can apply into your financial life immediately.

If not... keep searching!

Recommended sources

2007-12-15T12:00:00.000-08:00

http://www.usatoday.com/money/perfi/columnist/waggon/2005-04-21-mortgage_x.htm

http://www.mortgageloan.com/refinance-mortgage

http://www.interest.com/

http://www.bankrate.com/

http://money.cnn.com/2007/12/06/real_estate/home_equity.ap/

http://www.mortgage101.com/