| Are you serious about saving thousands of dollars in | | | | interest. After one year of paying $1200 each month |
| interest money? Did you get a good deal with your | | | | I would only have $2400 in equity from those |
| mortgage? Most people choose a mortgage based | | | | payments. |
| on one thing: The interest rate. They may take all of | | | | That $231,000 in interest actually was 115% interest. |
| 30 minutes deciding on a mortgage and then lock | | | | Not 6%! Call your banker and get the numbers for |
| themselves into 360 months of payments. 30 years | | | | your own loan. You will be amazed! Of course this |
| of hard labor! | | | | lead me into some checking around for something |
| In the past when I have taken out a loan I always | | | | better. |
| stop to multiply the payments by the term, or the | | | | What I found was a system of paying down |
| number of months. When I was told I was approved | | | | mortgages in 12 to 14 years. This system has in fact |
| for a 6% loan on $200,000 for my home I stopped | | | | been in use for many years in England and Australia! |
| to figure out what it really was going to cost. I | | | | It is not making two payment each month or even |
| multiplied my payment of $1199.10 by 360 months | | | | send a few hundred dollars each month. It is the |
| and came up with $431,676! Now, that seemed like a | | | | combination of powerful, easy to use software with |
| lot more than 6% to me. That was $231,676 in | | | | a simple secondary account. Even though I knew my |
| interest alone! | | | | lender had made thousands of loans and no one was |
| I did some investigating and found that most buyers | | | | complaining, I was just shocked that my equity was |
| are tricked into thinking that 6% or 6.25% is a good | | | | building so slowly. It is like I woke up from a dream! |
| rate. Well, let's look at that 6% APR loan. The truth | | | | The system in other countries cutting mortgage time |
| is that loan is front heavy on interest. Check it out | | | | in half or in third is tried and true. It is legal and a |
| for yourself. Call your lender and ask how much of | | | | very simple concept that works with your existing |
| your mortgage payment was applied to the principal | | | | mortgage. There are no risks involved, no roll of the |
| and how much was interest. Of my $1199.10 | | | | dice and no out of pocket expenses incurred by the |
| payment, $1000 went to interest and $199.10 went | | | | home owner! |
| to principal. I figured it out. That equates to 502% | | | | The vehicle is called a Money Merge Account, a |
| interest that first month. I could not believe it. I knew | | | | powerful financial tool and software to help you fulfill |
| it would get better. It had to! I asked my lender to | | | | your dream of home ownership and save money for |
| break down the figures for me. By year 15 I was still | | | | your future. The average Money Merge Account |
| paying $1199.10. I was amazed to find out that $713 | | | | customer will pay their mortgage off 100%, in 1/2 to |
| went to interest and only $486 to principal. I was still | | | | 1/3 the time, with little to no change to their |
| paying 146% interest. | | | | day-to-day spending habits and without increasing |
| I found out that 6% meant 6% APR or annual | | | | their monthly mortgage payments. It will save the |
| percentage rate. 6% per year over thirty years was | | | | average home owner tens or even hundred of |
| actually 180%. Why didn't my banker tell me this? | | | | thousands in interest on their home loans. |
| This, I thought was trouble, because I knew by year | | | | I now spend my days helping average people build |
| seven or eight I would want to move to another | | | | equity much faster and pay off their home loans in |
| home, just as most Americans do. I knew that my | | | | less than half the time of the traditional 30 year |
| equity was built by adding to the principal and not the | | | | mortgage. |