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.
The decision of which mortgage payment system to choose is yours to make. However, it is important to note that the being able to live a life free of mortgage debt only happens when you start committing yourself to really paying off your mortgage soon enough.
Accelerating your mortgage payments and paying off your mortgage is a sound financial strategy. Unlike investing in the stock market, there is no risk attached by paying off your mortgage debt. And when your mortgage debt is paid off, all the extra cash from your paycheck is now available to you to spend or invest as you like.
Paying off your mortgage has a number of benefits. If you earn a good living but find it hard to save or you feel that you don’t have any money left over at the end of every month, one way to have extra cash is to get rid of your mortgage debt. It may require some financial ingenuity in the short-term, but you could spend a lifetime living the life you want in achieving true 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.
Yours is not an isolated case. Banks set up mortgage payment processes in such a way that it would serve their causes at your expense.
Though you are making extra mortgage remittances, you will eventually discover that much of your mortgage payments are used to pay for the interest. This will then lead you to believe that accelerated mortgage payments are not very practical at all.
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.
This accelerated mortgage payment technique is called mortgage acceleration.
Mortgage acceleration is a method where you borrow money from a low rate account to pay off your mortgage which is a high rate account. You don’t spend any extra money when mortgage is paid off much faster.
So for example you may have two loans. One loan is a rate of 6% and the other at the rate of 3%. Now, would you borrow money from the 3% loan to pay off the 6% loan?
This definitely is something you can do to help you save thousands of dollars.
Accelerated mortgage payments is just borrowing nominal amounts from your HELOC account and using that money to pay off your mortgage. In order to do that, you only need to deposit money, pay your bills using your home equity line of credit, and it automatically converts the HELOC into a 3% rate. By doing so, you are able to pay 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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