Mortgage acceleration is basically paying more towards your principle than the schedule payment. If your payment is $1,000 per month and you send in $1,001 or more, you are accelerating your mortgage.
Let’s look at a very simple example…
You have a $100,000 mortgage at a 6% interest rate. Your payment is $599.55 per month for principle and interest. The total amount of interest scheduled to be paid over the life of the 30 year mortgage is $115,838.19. Now, if you pay $50 (total $649.55) more towards your first mortgage payment, your total interest over the life of the loan would now be $115,588.56. You will save $249.63 on total interest charges, simply by paying $50 more on your first payment.
There are several types of products that can aid in accelerating a mortgage:
1) 15 year mortgage – The 15 year mortgage operates the same as a 30 year mortgage, but you will pay half the total, overall interest, of course with a higher monthly payment. For instance, at a 6% rate on a $100,000 loan, your payment would be $843.46 per month and your total interest charges will be $51,822.13.
2) Bi-Weekly Mortgage – This is where you pay half your mortgage payment every two weeks. In essence, you make one more monthly payment every year. Looking at our 30 year example, on this option you would pay $90,196.39 in total interest. My personal recommendation is that this is the worst method to accelerate your mortgage, and I will elaborate in later editions of this article.
3) Satori Wealth Building System™ (SWBS™) – Our exclusive system is the best system on the market for mortgage acceleration and the reason is, it uses the power of your entire paycheck on a monthly basis. It will pay off your home faster than any option available in today’s market. Two of the major components to be eligible for the SWBS™ are: disposable income and equity. Now, these aren’t the only factors necessary to run the system as there are a wide range of setups.
It would be in your best interests to contact our specialists to find out just how the SWBStm could work for you.
Why do it? The average American does not fully comprehend just how much interest is paid over the life of their mortgage, while at the same time being compensated so little for the money they run through a bank account.
In many cases, people can save tens of thousands of dollars in interest over the life of their loan simply paying a little bit more every month. If you are interested in saving thousands of dollars in interest on your mortgage, check out our Your Satori calculator and find how much you can save.
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This is really interesting take on the concept.I never thought of it that way.
Pay off mortgage
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