Accelerate Your Mortgage Pay Off Date And Pay Off Your Mortgage Much Sooner

Signing up for a 30 or 40 year mortgage can be a daunting commitment when you think about it. You might start to wonder if you loose your job, or if you get ill or injured who is going to make the payments on your mortgage loan. If you feel this way you are not alone. Homeowner and even renters struggle with these and similar questions on a regular basis, especially with the economy not growing at the rate we have gotten accustomed to over the years. In short, we have to figure out ways to minimize debt as much as possible.

You might ease your worries by taking out lots of insurance policies to cover you and your family just in case something unfortunate happens; and that is not a bad idea at all if you can afford to do so. However, buying protective insurance is expensive. If you are a couple insuring the person with the highest income is not a bad idea either. There are ways to cut a mortgage down substantially. You could take a 30 year mortgage loan and cut it down to a 10 or 15 yr mortgage. It is really not difficult if you know how to do it the right way, but there must be a way for your to either use your existing budget or create a bit more income and funnel that excess income towards lowering your mortgage, and avoiding the interest which make up most of your mortgage payment in the beginning. It is not just about mailing in extra money to lower your mortgage, it goes much deeper than that. There is a systematic way to hammer down your mortgage payment which is very effective. You can mail in extra money on your mortgage payment, but the extra money you are mailing in can end up going anywhere.

Accelerate Your Mortgage Pay Off Date And Pay Off Your Mortgage Much Sooner

Without giving your mortgage company the right instructions, you mortgage company could apply your payment toward any outstanding late fees, corporate advances, future payments, or anywhere else which is not effective in cutting many years off your mortgage loan. Remember, your mortgage company is not interested in cutting years off your mortgage, they are not going to come out and tell how to do it. You will have to instruct your mortgage company and follow up to make sure they have applied your extra payments the way you instructed them to. Your mortgage company wants to keep you paying for as long as possible, that is job security for them. When you apply your payments the correct way you will see your mortgage balance dropping like you have never seen before, trust me on this. We have a way that has worked for many years in elimination mortgage debt quickly! It can also be applied to car payments, and other outstanding loans, but it is most effective on mortgage loan due to the size of the loan amount on homes. You have to instruct your mortgage company on how to allocate your extra payments where you need it to go, towards your principal, but when you use your amortization schedule that is where you are unstoppable. It's truly very powerful! Your principal mortgage balance is reduced the least when you start making your payments for about the first 5 years of your loan.

If you pay a $2000 a month mortgage, you might find out that your payment only reduced your unpaid principal balance only about $260 depending on your interest rate. It is almost criminal how little your payment is reduces your mortgage balance. Some homeowners are not even aware of how their payment is applied, they are just in it to pay for 30 years not knowing that could easily be cut in ½. Regardless, there are ways to effectively lower your mortgage balance much faster than you could imagine. There are savvy homeowners that know how to cut a mortgage balance in half or more using the same or a similar budget they have right now. You must use your amortization schedule and instruct your lender how to apply any extra payments that you might pay throughout the year. We use this same technique and teach many homeowners how to pay off their mortgage in fraction of time, similarly to how they might pay off a car payment and the timeframe is not that much different either. The extra payment must be instructed to go towards the principal but it goes beyond that. A homeowner can lower a 30 yr or more mortgage by just throwing a few extra $100 or more towards their mortgage balance each month, or every once in a while, which is fine, but that is just the tips of the iceberg. You have to give your mortgage company the right instruction in the memo part of the your check just how to apply your extra payment, and that make a drastic difference in cutting time off your mortgage, that is just what we teach.

Accelerate Your Mortgage Pay Off Date And Pay Off Your Mortgage Much Sooner

Imagine going to sell or refinance your property and realizing how much lower your mortgage balance has gotten. It is putting money back into your pocket in a big way. There are homeowners who this technique to pay off their mortgage in 10 to 15 yrs without having huge yearly salaries. The average person can do the and save themselves many tens of thousands of dollars, or more, on their mortgage by avoiding paying those unnecessary interest payments that most homeowners pay to make mortgage investors super rich.