When you bought that first home it felt as if was a dream come true.
The only challenge with owning a home is the huge monthly mortgage bill. On average we spend 35% to 40 % of our paycheck towards the monthly mortgage bill.
There is nothing wrong with that except
Most of your payments go towards paying off mortgage interest rather than paying off principal.
And before you even realize it you are set up to pay for your mortgage for a lifetime. It could take anywhere from 30 to 40 years to repay the mortgage debt.
And lets assume you are approaching retirement.
Your mortgage could outlast your retirement years and then your kids are left with the financial burden of paying off your home.
You may think you are donating the home but the sad reality is that you are donating over mortgage debt.
You have managed your debt so that expenses will be minimal at retirement.
And now the question is could you pay off your mortgage before you retire so that you get to spend time with the family and enjoying retirement rather than using your retirement savings to pay off mortgage debt?
Well I am excited to show you a new approach to this below.
Lets assume that your largest debt and your largest bill is
Your monthly mortgage repayment.
You dont have to pay all the interest that is due on the mortgage.
Using the method of mortgage acceleration, you could save thousands in interest and pay off your mortgage at least 13 earlier, without spending more or refinancing.
Government Statistics (by mortgage insider) show that over 80% of Americans live in debt.
And when they approach retirement 35% of them still have over 20 years left in mortgage repayments.
One way to become financially independent is to eliminate your largest debt, your mortgage.
The fastest way to eliminate your mortgage debt is to use a mortgage acceleration system.
Mortgage acceleration is a term used to accelerate the pay down off your mortgage faster than that is shown in your mortgage amortization schedule.
As interest on mortgages is compounded, early payments slashes the years needed to pay off your mortgage, which in turn reduces the amount of interest.
Most of us dont have the ability to make extra payments and have little wiggle room in our budgets each month. So this is where the mortgage acceleration steps in. Without spending more you can eliminate your mortgage payment.
It allocates your monthly repayment more towards principal and less towards interest costs.
And the biggest benefits of all, your mortgage could be paid off in less than 10 years. Imagine saving thousands.
This is the most important benefit of the mortgage accelerator.
With this extra cash, you would be able to put your kids/grandkids through college, or purchase a second property for investment purposes or just have the extra cash to enjoy during retirement.
Lets Assume You Are In Your 20s and Have 30 Years To Retirement:
Your mortgage is a 30 year mortgage with a pay off amount of $ 300,000. At 6% interest, you will be paying $ 347,514 in interest at the end of 30 years.
Isnt it interesting you have to pay back more than you initially qualified for on your mortgage.
By using the mortgage accelerator, this same mortgage can be paid off in half the time saving you $ 60,000 in interest.
Say goodbye to your mortgage payment, and have a home that has no debt by the time you hit 40.
You can use the equity in your existing home to fund the down payment on an investment condo.
Once your mortgage is paid off, that could represent financial independence and could be the starting point for an early retirement.
The thought of enjoying the benefit of everything you worked long and hard for, in your later years will make you healthier in the long run by being stress free.
Heres the best part. You dont even have to change your existing standard of living at all.
Lets Assume You are In Your Early 40s
The biggest goal at this point would be to send your kids to college. Most of my clients dream of giving their kids a debt free college experience.
You know how hard and long it takes to pay off any college debt. Instead of your kids working to enjoy life and live debt free, they may have to face the prospect of working for a very long time to get rid of debt.
Using the equity acceleration system you can finance their education using the equity in your home.
Imagine the gift of a debt free college experience at graduation.