| If you have a mortgage do you use your checking | | | | If this $5,000 were deposited into a mortgage checking |
| account to do your monthly banking? | | | | account, the paycheck would be placed in a HELOC |
| If you do you, then you are not alone. Millions of | | | | and then against the mortgage balance, dropping it to |
| homeowners just like you are making this one mistake | | | | $195,000. |
| which could save you tens of thousands of dollars. | | | | As you makes withdrawals throughout the month, the |
| One of the biggest weapons available to homeowners | | | | balance returns to near $200,000 in the mortgage and |
| is the use of a mortgage checking account. | | | | HELOC. |
| Using a mortgage checking account is the same as | | | | However, between the time of the initial deposit and |
| taking a hand grenade to a knife fight. | | | | the final withdrawal, money has been saved on the |
| Why? | | | | daily interest on the mortgage. |
| A mortgage checking account is a smart alternative to | | | | Over the course of the mortgage, the mortgage |
| saving money and slashing years off your mortgage. | | | | checking account can literally save tens of thousands |
| Originating from Australia in the early to mid 80's, these | | | | of your hard-earned dollars in interest as well as |
| financial products have spread to other countries | | | | helping you to cut years off of the life of your |
| including a few bank institutions in the United States. | | | | mortgage. Your mortgage will be paid off in a |
| These accounts combines a traditional checking | | | | record-setting amount of time! |
| account with a mortgage account to help consumers | | | | The primary advantage of a mortgage checking |
| pay down their mortgages much faster through | | | | account is, obviously, the savings in interest. |
| savings on daily compounded interest. | | | | These accounts allows a homeowner who qualifies to |
| Before the invention of the mortgage checking | | | | gain an upper hand on their loans. You will save a |
| account, Australian consumers moved around, signing | | | | remarkable amount of money, learn some payment |
| new, traditional mortgages which cost them a huge | | | | secrets, and help your mortgage to get paid off |
| amount of money in fees and interest while never | | | | quicker than anticipated. |
| allowing them to get ahead. | | | | As the savings begin to pile up, your mortgage |
| In recognition of this financial burden, a major bank | | | | checking account will automatically transfer those |
| decided to offer Australians daily interest calculations | | | | savings to the debt principal in an efficient manner. |
| and no penalties for paying in lump sums or increasing | | | | Educated consumers today find that a mortgage |
| payments. | | | | checking account provides them with benefits that |
| Through these decisions, the bank created a new type | | | | they never dreamed possible. You literally save |
| of financial account, helping consumers to benefit from | | | | thousands of dollars every year on their mortgage |
| otherwise overlooked loopholes in the mortgage | | | | interest. |
| lending practices. | | | | You are not required to make any extra payments, |
| Let's suppose for a moment that you owe $200,000 | | | | nor do you experience any increase in their monthly |
| on your mortgage. | | | | payments. You never experience any changes to their |
| Let's also suppose that you receive $5,000 per month | | | | standard way of living. |
| in wages or from other sources of income. If you | | | | Finally, since this is not a debt reduction or bi-weekly |
| were to deposit this check into a traditional checking | | | | mortgage program, you enjoy all the benefits of a |
| account, you would earn between 0% and 1% in | | | | traditional loan while being rewarded for conducting |
| interest. | | | | business as usual! |