Discover how to:
Save thousands in interest
Pay off your loan faster
With no change in spending habits
Home Equity Accelerator
Retire Your Mortgage Before You Retire …a sure thing in creating equity!
I have invited Chris George, President of CMG Mortgage Services, to write this article and give his perspective on a new equity building product.
By Chris George, President, CMG Mortgage Services . .. An increasing number of baby-boomer homeowners seem to be resigning themselves to the fact that, unlike their parents, they will be making mortgage payments well into retirement. If you look at statistics, you can see where this anxiety comes from. The average age of a person taking out a 30-year mortgage in California is 45 years old. Unless those people sell their homes or pay off their loan early, their last mortgage payment won’t be made until they are 75 years old! And to pay off that loan early isn’t easy, because the borrower has to make significant changes to the family budget to squeeze in the extra principal payments.
Thankfully, there is now a better way to retire mortgage-free.
Use CMG’s revolutionary Home Ownership Accelerator loan to accelerate paying off your home loan without changing your family budget. You simply deposit your monthly paychecks directly into this innovative line-of-credit, reducing your loan balance until you pay your bills. While you aren’t using the deposited money it keeps your principal balance lower, which can save you many tens of thousands of dollars of interest over time. The money you save remains in the account, further reducing your balance. So, just by changing where you deposit your income, you can pay off your loan years earlier with no change to the family budget. A recent article in the New York Times noted the arrival of the Accelerator as a viable financing alternative.
“For borrowers who cannot face the prospect of paying more interest than principal over the course of a loan, mortgage lenders have begun to offer alternatives more aggressively. Companies like Macquarie Mortgages USA, CMG Financial Services and others have unveiled mortgage products in the past year that allow borrowers with good credit and above-average incomes to accelerate their payoff schedule and reduce their overall interest liability,
all without increasing their monthly mortgage payment.
”These aren’t for everyone,” said Tom LaMalfa, founding partner of Wholesale Access Research and Consulting, a financial industry consulting firm based in Columbia, Md. ”But for those who are reasonably affluent and good savers, it makes a good deal of sense and reduces the overall loan cost.”
If you want to further accelerate the pay-down of your loan balance without changing your family spending habits, consider parking your rainy day money in the account. Your rainy day fund is probably sitting in a low-interest bearing savings account or CD. Switch that money into your Home Ownership Accelerator account, and that money will immediately reduce your loan balance, saving you even more interest. (Your “effective yield” on your rainy day fund is now equal to your loan’s interest rate!) And you haven’t lost access to your rainy day fund: You can tap into it instantly by writing a check or using your debit card. Until that rainy day comes, however, your cash is working aggressively to help you pay down your loan faster.
Overall, by flowing your day-to-day income and expenses through this line-of-credit, and parking liquid cash accounts such as savings and CDs in the account, you could accelerate your mortgage pay-down fast enough to completely pay the loan off in about half the time. Which means, even if you are a baby-boomer, you can actually retire mortgage-free! While this sounds too good to be true, this loan is for real! If this sounds intriguing enough to discuss in greater detail, watch a short video on www.homeownershipaccelerator.net and give me a call at 650-322-7277.
