Mortgage Acceleration-What Is the Voodoo behind this Financial Planning Strategy?
Because a significant number of strategies to paying off mortgage have already been developed, paying off your mortgage early and living a debt free life has become confusing and this leads to inaction.
Mortgage acceleration, biweekly programs, and all the other methods can become too confusing, you might just spend most of your time trying to figure out which one is more viable and then youll realize that you are still many years away from getting your mortgage fully paid off.
Mortgage acceleration is just another financial strategy that you can make use of in order to get your mortgage paid off. However, you have to decide if you really want to pay off your mortgage faster so you can live a debt-free life before actually deciding which mortgage acceleration technique would best suit you.
This choice alone can only be made by you. You could spend hours and weeks taking advice from all the financial gurus and information available out there but the more you learn, the more confusing it gets. Everybody these days seem to have their own opinion on mortgage acceleration. The first step to pay off your mortgage is to decide in advance whether this is the right financial strategy for you.
When you have not put a stake on the ground and committed to this decision, the different strategies for mortgage acceleration might not be useful for you at all so youll end up not paying off your mortgage or not finding a program that would suit you best.
This should not be regarded as entirely your fault. Sometimes, there are just things that the brain subconsciously decides against. Paying off your mortgage might just be one those.
As of this time, let us just assume that you want to live a life free of mortgage debt and that you are not sold out to the idea of using your retirement savings to make mortgage payments.
Can the mortgage acceleration program really work to your advantage?
Right now you have many alternatives instead of using mortgage acceleration method. One method is to pay off your mortgage using extra cash that you have left at the end of every month. Another method could be using the biweekly mortgage program. Both these methods require that you spend extra towards mortgage in order to have it fully paid off.
Mortgage acceleration on the other hand is a system designed to help you accelerate your mortgage without changing the lifestyle or refinancing your mortgage payment. In fact it is common to pay off your mortgage at least 13 years faster saving thousands of dollars.
This being too good to be true may give you the impression that you are being led into a scam.
Most of my clients tell me decide against the mortgage acceleration program as the cost is high. Some programs are sold at $3500 and because it requires too much money from them, they immediately resort to thinking that the program wont work for them at all.
And you know what, you may be right in your assessment. You dont ever need to pay anything close to this to pay off your mortgage. Now let’s forget about the cost for a while.
You will need a home equity line of credit in order to generate interest savings every month when you choose to follow the mortgage acceleration technique. The accumulated interest savings can be used to pay for mortgage. Its almost the same as borrowing money from a credit card that has a lower interest rate to pay for the loan youve made using a credit card that has a higher interest rate. When you do this, you will be able to save up thousands of dollars.
With the mortgage acceleration system, you put your paycheck into the HELOC and pay your bills directly from the heloc you will automatically reduce your mortgage interest rate to half. As a result, you could end up paying off your mortgage 13 years faster and saving thousands.
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