How to dramatically reduce your home mortgage with mortgage acceleration.

owning a home is a major investment, perhaps the greatest investment you will ever make. Unless you are wealthy enough to pay cash for your home, most of us will have to take out a loan. When you take out a loan, you agree to pay back the amount of money you borrow, plus interest. That’s only fair, but most people do not realize just how much that interest could be!



Let’s look at an example. Suppose you purchased a home with a mortgage of $125,000 at 7.5% interest with a 30-year term. Your monthly payment is $874.02 for principle and interest. Over the life of the loan you will pay back $314,646.53!



How can this be? Because most of each payment in the early years of the loan, goes towards interest and very little towards the principle. In fact, after five years of payments the principle will be reduced by only $6728.20.



Can the banks do that? They sure can! Can you beat it? Yes!...by using a concept called “Mortgage Acceleration.” if you look at the example above, you will find that you will pay $189,646.53 in interest on a $125,000.00 loan. That is more than 1.5 times as much in interest as the amount borrowed.



Shocking, isn’t it? But...if you would make an advance payment of only $75.00 each, over and above your regular payment, you would have saved more than $50,704.60 in interest costs on the $125,000 loan. And of course you will have reduced the loan term to only 23 years and 3 months instead of the original 30 years. That is a tremendous amount of savings that can be made effortlessly and painlessly.