Mortgage Reduction Program - Information and Advice

"How you can save thousands of dollars in interest payments."

Mortgage Reduction Program: Do you know that every year you're giving away the hard-earned equity in your home by paying too much in interest? With a mortgage reduction program, you can cut up to seven years off of the length of your mortgage, saving thousands of dollars in the process. Think a mortgage reduction program doesn't add up to a lot?

Think again. Let's say you have an $100,000 mortgage and are paying an interest rate of 7 percent.

How much will a mortgage reduction program using a bi-weekly payment plan save you, versus paying the conventional mortgage off over 30 years?
 

Stop Giving Away Your Equity

Believe it or not, you would be saving over $31,000!

And that amount becomes additional home equity instead of interest expense.

 The more your loan amount or the higher your interest, the more money this you can save.

When you pay your mortgage bi-weekly, there are a number of factors that come into play.
 

Mortgage Reduction Savings

• You're reducing the term of your loan by up to eight years
• You're paying less interest over the life of your loan
• You're building up equity in your home sooner

You save because more of your money is going towards principal than interest. The savings don't end there.

Due to the fact that your mortgage will be paid off years in advance, you will also be able to discontinue your private mortgage insurance (PMI) earlier, thereby saving you even more money.

The bi-weekly mortgage method is also a wonderful option for people who want to pay off their homes in a shorter period of time than the conventional thirty year mortgages allow, but who don't qualify for a standard 15 year mortgage.

You have more convenience and flexibility than with a fifteen year mortgage.

With a fifteen-year mortgage, if you want to change to a thirty-year mortgage, you would have to refinance. With the bi-weekly payment plan, if your circumstances temporarily change you and need to pay on a monthly basis for a period of time, there is no refinancing necessary.
 

Mortgage Reduction Programs

So how much is someone going to charge you to save you thousands of dollars and build up quick equity in your home? There are various services available to homeowners that will take control of this process for you.

If you use them, you're wasting some of the money you're going to be saving by using this payment method in the first place. There is really no reason to enlist the help of a company to do this for you, when with the proper tools and information, you can do it yourself.

Unless you're independently wealthy and don't care where your money goes, then you will definitely want to look into paying off your mortgage on the bi-weekly plan, and learning how to do it on your own.

The simplest way is to just send in half your regular mortgage payment every two weeks. That way, you end up making thirteen full mortgage payments in a year. That one extra payment each year produces tremendous savings.

Another way is to add an extra principal reduction payment to your regular payment. Include a note explaining that you want the second check applied against the principal balance.

Each extra payment you make reduces the amount you owe and the interest you pay over time.

Start reducing your mortgage today with your own mortgage reduction program. You'll be glad you did.

Written by Craig Romero
Discover how to quickly build a minimum of $40,000 worth of home equity and pay your mortgage off in 10 years or less without making biweekly mortgage payments. Visit: www.wisemortgageinfo.com

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