| Mortgage accelerator programs seem to be getting all | | | | called leverage. |
| the press these days given what's going on in the | | | | This technique of leverage could be used in a |
| market. The stock market has crashed and equity in | | | | mortgage accelerator program. When you use a |
| your home is probably lost 40% of its value. Paying off | | | | home equity line of credit (heloc) and deposit your |
| your home is a good financial strategy to rebuild your | | | | paycheck at the beginning of the month and you pay |
| wealth in this marketplace.Is a mortgage accelerator | | | | your bills from this account at the end of the month, |
| program the best strategy for you?There are many | | | | the heloc automatically charges your interest at a low |
| smart ways to pay off your mortgage fast and | | | | interest rate. So for example if your heloc interest rate |
| accelerate your mortgage payments. The traditional | | | | is 7%, by using it as a checking account it automatically |
| methods includes spending extra from your paycheck | | | | drops to 3%. |
| to pay off your mortgage, refinancing to a lower rate | | | | Now the next step in the mortgage accelerator |
| and keeping your payment same or using the biweekly | | | | program is to borrow small amounts from the heloc |
| mortgage accelerator program. All these methods | | | | and pay that directly towards mortgage principal. |
| require you to spend more for own pocket to pay off | | | | Usually your mortgage rate is six or 7%. Borrowing |
| your mortgage faster. | | | | small amounts from the heloc and automatically paying |
| The mortgage accelerator program that I'm referring | | | | off your high rate mortgage, will automatically save |
| to here is the system using a home equity line of credit | | | | you thousands of dollars. Just like the credit card |
| to pay off your mortgage faster. Sometimes this | | | | example above. |
| method is referred to as mortgage acceleration, the | | | | It is not uncommon using a mortgage accelerator |
| mortgage accelerator method or the mortgage | | | | program to slash 13 years off your mortgage and |
| checking account method. | | | | save over $60,000. |
| In a nutshell here's how the mortgage accelerator | | | | Remember, the mortgage accelerator program is just |
| program works. | | | | one way of paying off your mortgage early. |
| Let's assume you owing $10,000 on a credit card. And | | | | The reason why most of us are confused and we |
| the interest rate and the credit card is 13%. Now you | | | | cannot select the best mortgage payoff system, is not |
| have a second credit card with a zero balance but the | | | | because this method doesn't work, it's because the |
| interest-rate is only 6%. Would you borrow money | | | | cost of using this method could seem high and prevent |
| from the 6% interest rate card to pay off a 13% | | | | you from taking action. |
| interest-rate credit card? Of course you would, and by | | | | And you may be right in your assessment. I strongly |
| doing this you would save thousands of dollars in | | | | suggest that before you dismiss mortgage |
| interest. | | | | acceleration as one additional technique to pay off |
| Borrowing money from a cheaper rate of interest to | | | | your mortgage, you should do some homework first |
| pay off a higher rate of interest is a financial technique | | | | and find out the best program that fits your needs. |