Very Smart Way To Reduce Mortgage Debt
Your mortgage is your largest debt, costing more interest than any other loan. So reducing mortgage debt is where the really big savings are. Consider a $300,000 mortgage priced at 4.5%. The monthly payments are $1,520. Over 30 years, payments total $547,218, including $247,218 of INTEREST. The bank will earn $247,218 on that mortgage loan. That’s just the way it works!
Banks make mortgage loans because they provide steady income, safety, and security. Actually, lots of people like investments that provide steady income, safety, and security. Maybe you too? If you’d like this type of investment for your portfolio – and you have a mortgage – guess what? You actually can invest in your own mortgage.
Most people think the only way to reduce mortgage debt is to add more to their monthly payments. That’s not true. Also, most people don’t understand the way mortgage interest works. The first year of this mortgage:
So in the first year of the loan, it costs $13,400 to borrow $4,840.
That’s over 275% interest! How much should it cost to borrow $4,840 for one year? Certainly not $13,400. This is what most people don’t understand about mortgage arithmetic and why they can have huge savings using a mortgage acceleration system, as this video explains:
As a homeowner myself I understand how much money the average homeowner can save using equity acceleration, and it’s why I stand behind the Mortgage Magic System.
If you’re looking for a money-saving technique that offers really impressive savings and cuts years off mortgage payments, you’d be wise to learn more about this system.