Mortgage Accelerator: How it Works
In recent times, mortgage accelerators have become very popular in different countries such as Australia, UK and Canada. With this type of programs, you don’t pay any extra money toward the mortgage but end up paying your mortgage in 10-15 years.
At the same time, you end up saving an average of over $100,000. You can use this money to pay for your children education, build a safety net or to accelerate the time at which you’ll be able to retire.
This type of programs is also becoming very popular in the U.S. because it allows you to optimize the use of your money so that you can keep as much of it as possible. Also, you receive a great sense of direction and accomplishment by knowing that you are doing everything you can to improve your financial situation.
The basic tool in a mortgage accelerator program is the use of a Mortgage Checking Account (MCA) which is an advanced home line of credit. You can use this line of credit by leveraging ALL of the unused “stagnant” funds from your checking account.
As you deposit money into your MCA, those funds are automatically applied on a daily basis toward the balance of your home mortgage. When you do that, the mortgage balance is reduced and the amount that is used to calculate your daily interest expense on your mortgage is also reduced. This translates in large savings over a long period of time.
At the same time, you can get money from the line of credit to pay your regular expenses. In the meantime, the money in the line of credit is reducing the interest accumulating on your mortgage.
By using the MCA with a piece of highly advanced software, you can see the specific best timing and amounts for each transfer required to get the fastest payoff time and highest interest savings possible for your home mortgage.
Since your life is not fixed, the software also allows you to see different scenarios adapting to the changes in your life. It also let you know about the result of buying large ticket items such as cars and tells you the best way to pay for the item so that you stay on track with your mortgage.
Many people are starting to seriously consider this type of programs. To do so, you just need to talk to a specialist who can give you an individualized detail picture of you financial situation while helping you to set everything up.
The time you take to learning how this type of programs work may be well time spent. After all, how long would it take you to make the $100,000 you could be saving by using one of these programs?
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