If you are planning to pay off your mortgage, making acceleration mortgage payments may be the most effective way to pay off your mortgage faster and save thousands of dollars before you retire.
There are many ways to paying off your mortgage, know that the gateway to living a debt free life is to decide that you want to be debt-free and that youre willing to do whatever it takes for you to live that kind of life.
Accelerating mortgage payments allows you to escape from the risks that come with investing in the stock market. When you pay off your mortgage debt, you will be able to spend all the extra cash you get from your employer the way you like. Thus, paying off your mortgage and accelerated mortgage payments are seen to be wise financial strategies.
There actually are a couple of benefits that paying off your mortgage will allow you to enjoy. If you decide to spend a little more from what you are earning, youll be able to live a debt-free life in no time. A settled mortgage debt is synonymous to having extra cash left to spend at the end of every month. Talk about spending a lifetime of financial independence.
There is no better feeling in the world than not sending a check to your bank for the mortgage payments every month. For some of us this mortgage payment may mean 30 to 40% of our paycheck that goes directly to mortgage debt each month.
The biggest obstacle to paying off your debt may be your monthly financial commitments.
Because banks tend to design mortgage payment processes to be favorable only to them, you can be assured that you are not alone in this kind of situation.
Even if you spend extra money on mortgage remittances at the beginning of the term, you would later find out that most of it goes to mortgage interest. This somewhat annoying fact will later make you decide against paying off your mortgage ahead of and time.
There is, however, a technique that will allow you to make accelerated mortgage payments, get your mortgage paid off 13 years earlier, and lets you save more than $63,000.
They call this accelerated mortgage payment technique mortgage acceleration.
Mortgage acceleration is a payment system that helps you make sure that you will not be incurring additional expenses when you pay off your mortgage faster. When you choose to pay off your mortgage using this method, you will be borrowing money from a low rate account to pay for mortgage which is regarded as a high rate account.
Take for instance, you already have two loan accounts, one at a rate 0f 3% and the other at 6%, would it be wise for you to borrow money from the 3% loan to get your 6% loan account settled?
Of course you would and you would end up saving thousands of dollars in the process.
Mortgage acceleration is a method that uses a home equity line of credit to pay off the first mortgage. The simple trick is done by depositing your money and paying your bills directly from the home equity line of credit which you can convert it to the HELOC that has a 3% interest rate. And when you borrow money in small chunks from your HELOC and pay it off to your mortgage, you could end up paying off your mortgage 13 years faster.
The best thing about this is that you dont have to go out of your way or have your mortgage refinanced just so you can get pay off your mortgage in full.
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