My New Blog

Well it's time for me to get into the 21st century and start blogging!  I'll periodically be posting thoughts and ideas on the mortgage and real estate industry that will hopefully be of some use and interest to you.

Mortgage Equity Acceleration

This is something that you may have been hearing about recently as the most unique new mortgage product in a generation.  Well that sounds like quite a bit of hype, but is it true?  Actually, yes!

Mortgage Acceleration, in its truest form is a combination of mortgage and banking principals that allow you to decrease the amount of interest you pay on a loan just by utilizing banking techniques of daily interest and average daily balance.  With many loans, your interest charges are based upon the outstanding principal balance (average daily balance).  With your traditional mortgage loan, you only see the principal reduced once per month (on a fully amortizing loan) and then whenever you may decide to pay an additional princopal payment.  With an "Equity Accelerator" mortgage, you use a home equity line of credit as your primary checking account.  With each paycheck, or regular income received, you deposit those funds into the home equity account thus reducing the principal balance.  You then pay your bills as usual from the same home equity account.  When your interest on the home equity account is calculated, your average daily balance is lower and therefore your interest charges for that month are also lower.

If you are paying less interest, then more of your regular payment amount (not just an interest only payment) will be giong to reduce principal.  The compounding effect of additional principal payments then allows you to dramatically lower your overall interest costs and rapidly reduce your principal balance on your loan.  This is all accomplished without changing your spending habits or making additional principal payments.

Equity Acceleration can cut the mortgage interest you pay in half!

There are a couple ways to accomplish this Equity Acceleration: 1) a true Equity Accelerator loan (new mortgage loan), or 2) a Money Merge Account (no new loan required).  These are the new financial tools of our generation that can truly help free us of our greatest debt!

E-mail me for more info on Mortgage Equity Acceleration.