Mortgage Accelerator: How to Pay Off Your Mortgage in 10 Years

By Igor Buces in Mortgages on June 9th, 2008

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by Igor Buces

Given the present economical conditions, we have to find creative and proved ways to maximize how we use our money. In order to do so, we need to change how we look at money, and how we can shift our habits to use every dollar we make to our advantage.

For example, most people are happy with having most of their money in a checking or saving account where they get little return. In this case, the bank is the one taking advantage of the use of your money.

Another clear example is a home mortgage. In a regular 30 year mortgage, it’s not until the 20 years and 2 months mark that the principal portion of the payment equals the interest portion.

Since most American only lives in their homes between 5 and 7 years, we barely decrease the principal in our mortgage. This is so because the way the mortgage is structured heavily favors the banks since at the beginning most of the money goes to pay the interest portion.

For over two decades, homeowners in countries such as the U.K., Australia and Canada have been using mortgage accelerator programs to pay off their mortgages in 10-15 years saving over $150,000 on payments. The good news is that this type of program is now available in the U.S.

A mortgage accelerator program works without making additional payments toward the mortgage. It works in 4 simple steps:

1. At the beginning of the month, a piece of software will tell you the optimal amount to pay to your 1st mortgage to ensure you are paying as little interest as possible. The money for this payment will come from an advance line of credit (HELOC.) This transaction reduces the debt in the 1st mortgage and moves you further down the amortization schedule.

2. You then deposit your monthly income in the HELOC in order to reduce the balance on your HELOC. By doing so, you decrease the interest paid in the HELOC.

3. You charge your daily expenses on one credit card to allow your money to sit in the HELOC for as long as possible.

4. At the end of the month, you pay the credit card off before incurring any interest charges from the credit card company.

By doing a few changes in your financial habits, you can start making the bank’s money work for you and no the other way around. Using other people’s money (the bank’s money) is one of the surest and fastest ways to become financially independent.

Even though it takes some getting us to these changes, you can think about the alternative available to you; After all, how long and how much effort would it take you to earn the money you would be saving if you knew you could pay off your home mortgage in 10 to 15 years?

About the Author:

To learn more about how you can use a mortgage accelerator program to pay off your home in 10 to 15 years and save an average of $150,000 visit our mortgage accelerator website where you can find articles on how a mortgage accelerator works.