Are you frustrated in finding solutions to your personal financial obstacles? When you search for answers to your financial questions, do you only get little snippets of valuable information but no simple, yet comprehensive solution? It could seem like you are in an endless reservoir of information, but you never find any real and substantial direction, but that does not have to be the case.
There is a solution, and it is not as complicated as you might think. There are certain legal and guaranteed techniques available for you to make the most of your mortgage.
Managing your mortgage is a big solution, and the bi-weekly program is not the best option. In fact, it can be quite lacking in comparison to the best one out there. (The bi-monthly program is not even worth the bother. It will only save you about one month out of your total 30 years.)
Most people who own a home are familiar with the fact that if they pay one extra house payment a year, they can reduce their mortgage by 7 years. That would leave a 23 year mortgage.
Another alternative is to pay an additional $100,00 a month, which would decrees your 30 year mortgage to be, at best, 15 years.
The beauty of the bi-weekly program is that you can reduce your mortgage down to about 18 years, by making essentially one extra monthly payment a year, and this without it being too obvious to your budget. And in the process it works its way through the bank’s amortization schedule and reduces your total interest and the total length of your loan.
But there is an even better strategy!
And it’s not complicated.
By working with the opportunities built right into the banks own systems, you can leverage your equity to reduce the life of your mortgage down to about 1/3 or better. That is 10 years or less on a 30 year mortgage. And a lot of the time, it is significantly less than 10 years.
Once your house is paid off, you can then turn you mortgage payments into deposits for your savings account.
And so not only have you saved literally thousands of dollars in interest–and that sometimes being more than what you can accumulate in your 401(k) program–but you have 20 years of your mortgage payments that you can start putting into savings.
That means, if your mortgage payment is $600.00 a month, in 20 years you would have an additional savings of $144,000.00. If your mortgage is $1000.00, you could save $240,000.00. That is almost a quarter of a million dollars.