Mortgage accelerator alibaba programs seem to be getting all the press these days given what’s going on in the market. The stock market has crashed and equity in your home is probably lost 40% of its value. Paying off your home is a good financial strategy to rebuild your wealth in this marketplace.Is a mortgage accelerator program the best strategy for you?There are many smart ways to pay off your mortgage fast and accelerate your mortgage payments. The traditional methods includes spending extra from your paycheck to pay off your mortgage, refinancing to a lower rate and keeping your payment same or using the biweekly mortgage accelerator program. All these methods require you to spend more for own pocket to pay off your mortgage faster.
The mortgage accelerator program that I’m referring to here is the system using a home equity line of credit to pay off your mortgage faster. Sometimes this method is referred to as mortgage acceleration, the mortgage accelerator method or the mortgage checking account method.
In a nutshell here’s how the mortgage accelerator program works.
Let’s assume you owing $10,000 on a credit card. And the interest rate and the credit card is 13%. Now you have a second credit card with a zero balance but the interest-rate is only 6%. Would you borrow money from the 6% interest rate card to pay off a 13% interest-rate credit card? Of course you would, and by doing this you would save thousands of dollars in interest.
Borrowing money from a cheaper rate of interest to pay off a higher rate of interest is a financial technique called leverage.
This technique of leverage could be used in a mortgage accelerator program. When you use a home equity line of credit (heloc) and deposit your paycheck at the beginning of the month and you pay your bills from this account at the end of the month, the heloc automatically charges your interest at a low interest rate. So for example if your heloc interest rate is 7%, by using it as a checking account it automatically drops to 3%.
Now the next step in the mortgage accelerator program is to borrow small amounts from the heloc and pay that directly towards mortgage principal. Usually your mortgage rate is six or 7%. Borrowing small amounts from the heloc and automatically paying off your high rate mortgage, will automatically save you thousands of dollars. Just like the credit card example above.
It is not uncommon using a mortgage accelerator program to slash 13 years off your mortgage and save over $60,000.
Remember, the mortgage accelerator program is just one way of paying off your mortgage early.
The reason why most of us are confused and we cannot select the best mortgage payoff system, is not because this method doesn’t work, it’s because the cost of using this method could seem high and prevent you from taking action.
And you may be right in your assessment. I strongly suggest that before you dismiss mortgage acceleration as one additional technique to pay off your mortgage, you should do some homework first and find out the best program that fits your needs.