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THINGS YOUR BANK OR HOME LOAN LENDERS DON’T WANT YOU TO KNOW ABOUT YOUR HOME LOAN MORTGAGES
OWNING THAT DREAM HOME!
Buying a home is the most important and expensive transaction that we’ll probably enter
into during our lifetime.
Owning that first or last home should be one of the most profound and
rewarding experiences of our lifetime.
Imagine yourself with no more landlords and
occupying something that usually earns you money.
THERE IS A CATCH TO THE ABOVE JOY ABOUT RECEIVING A HOME LOAN
The catch is no matter how you feel about the purchase of the home, the sad fact
that this home will not be truly owned by you for another 30 years.
Maybe sooner if you manage to pay off your mortgage before
the 30 years expire.
Realistically you do not own the home until the last payment is
paid to the mortgage banks or home loan lenders.
Therefore, theoretically, you’re a renter until your last payment is
sent to your mortgagor.
Let’s a mortgage calculator assist you in your home loan calculation
Let’s say you in the past financed a $400,000 home for 30 years.
Let’s also say that you were good at saving and paying extra
toward your principal for a period.
And after about ten years into the mortgage you have been able to save $25,000.
Nevertheless, if an emergency arose where it would be necessary to spend
most or all the savings of $25,000.
To regain that amount many times will require you to refinance
Refinancing a $400,000 home is going to be costly!
Refinancing will normally cost you bank fees, origination fees, title and escrow fees,
appraisal, document fees and other fees the bank may be able to levy.
This means that $10,000 to $12,000 of the money you’ve saved is now going
for closing costs on the refinanced property.
This refinancing of the property begins your 30 years of debt misery all over again.
Refinancing with the typical 30-year mortgages means once again you now
have 360 months of renewed financial distress.
The Banks And Other home loan lenders Stay Up Late Developing Methods
To Take Your Money
Are you like the author of this article tired of all these financial
entities getting rich at his expense.
For example, are you like the author tired of depositing money in the
traditional bank savings and checking account.
These deposits earn little or nothing for the depositor.
Most or only a few banks pay anything for the money in checking accounts
and pay very little for your hard-earned money in their savings account.
The above is true despite the banks earning gobs of money off your saving
and checking account funds.
Another financial institution rip-off is letting you pay only the minimum payment on
your credit card debt.
The banks know that at this minimum rate, you’ll be years in the
future paying off the debt or worse still paying only the minimum
often means you’ll end up paying twice what the original cost was.
What a large drag on your future income.
It’s time for a change in your approach to paying your home loan and mortgage rates
Imagine someone telling you and convincing you that you could teach you how to build thousands of
dollars in equity and pay off your mortgage years earlier than it usually takes.
I bet you would listen! This is just what we’re going to do in this article.
Whether you’re wealthy or not so wealthy without stress or being a mathematical
genius or anything else magical you can accomplish this wealth without
experiencing a big change in your lifestyle.
The majority of mortgages in the Good old USA are paid monthly.
Some folk makes extra payments when they can afford to do it.
This affords this mortgagee some benefit by reducing the length of time the mortgage is
in effect, thus saving them money by reducing interest fees and the overall cost of the mortgage.
However, most others, like most of us, believe that the mortgage should
be treated long-range by faithfully paying our mortgages as a monthly payment
for a full 360 months as we were taught by family and friends.
Either way that you finally end up paying for your mortgage, the mortgage
bankers and lenders will own your home for a long period of time.
They over the years receive a plethora of money for their 30 year loan to you.
Often your house note’s total interest over the period is two to three times the cost of the
property you purchased.
Until you make that final payment of thirty or fewer years, the financier is the de facto
owner of your house.
The joy of owning the house of your dreams just cost over time about three times the
cost of the property and large portion of a homeowners take-home pay over thirty years.
Mortgage bankers and lenders to stay in business need to make money but at 3 times the
cost of the mortgaged property is questionable.
The above simple arithmetic means the home loan game is stacked against you from
the beginning of the home loan to its end.
With the above in mind, you must be able to meet the lender’s strategy with your own strategy.
Your homeowner’s strategy should focus should be on reducing first the monthly payment
and then reducing the overall amount that the property is costing you.
By increasing the monthly mortgage payment the homeowner will literally save
themselves gobs of money monthly and for the overall life of the mortgage.
It is time for individuals purchasing homes to learn new and different ways to pay
off their home mortgage.
These methods should benefit the homeowner only and exclude the money-grabbing leeches who
make bushels of money off you and your home mortgage.
Become involved learn all the secrets that the bankers and lender’s don’t want you
to learn and these money suckers will no longer be able to take advantage of you.
What is the Innovative Mortgage Payment System?
The innovative payment system has effectively been used in Great Britain and Australia.
Many American home buyers have exhibited keen interest regarding home buying savings that
could be realized using the innovative mortgage payment system.
It’s a known and proven fact that you can save money by setting up and implementing this system.
The above system is designed to not only reduce your monthly payment it will cut the
length of your mortgage obligation and the amount of the mortgage.
Upon investigation, we discovered that thousands of Great Britain and Australia mortgagees
using this method had cut their mortgage length from 30 years to seven to 10 years.
Despite drastically reducing the amount and the length of their mortgage using this method,
it appears that these mortgagees never had to make made any extra payments or
experienced any major change in their lifestyle.
These facts sounded too good to be true and certainly required further investigation.
After investigating we found that this was really happening to mortgagees in both Australia
and the United Kingdom.
It seemed that 60 percent or more of the people who purchased mortgages
in these two countries were using what is known as the LEAP principle to pay
off and own their homes way before the traditional time of 30 years.
After a review of this money-saving principle, we cannot find any reason why
mortgagees in America and elsewhere can’t use this same principle to reduce the
overall cost of their mortgage and the length of time the mortgage is in effect.
WHAT IS A FRONT-LOADED MORTGAGE?
Most mortgages issued in the USA and many other countries are front-loaded.
This means the homeowner purchaser pay off the majority of the interest in the
first part of the home loan.
In the Front-loaded mortgage system, the mortgagee’s interest rates finally taper
down in the last 15 to 10 years to lower and lower interest payments on the property
Initially, in the front-load mortgage system, most of your monthly payment is for
paying off the loan interest on the property and very little toward reducing the loan principal.
Most homeowners fail to realize that after 15 or more years of paying off your 30 year
mortgage, the homeowner will probably still owe a principal amount equaling to
70 to 90 percent of the original principal.
INTRODUCING THE “LOAN EQUITY ADVANTAGE PROGRAM,” (LEAP)
LEAP can save the homeowner thousands of dollars on their mortgage, and in times of a
financial crunch in life, it can keep your money from being tied up and it also can
erase most unsecured debt.
LEAP is not to be confused with other types of mortgage reduction plans, e.g., biweekly
payment plans and others.
True, a bi-weekly mortgage pay off plan will shorten a wee bit the mortgage interest
rate but does little or nothing to reduce the overall mortgage cost.
This form of home loan reduction is about nothing but adding an extra payment
each year thus instead of paying 12 monthly payments the homeowner ends up
paying 13 payments annually
The new LEAP system that can be adopted by Americans and others is
comparable to the systems used in Great Britain and Australia.
In these systems the mortgagees or borrower direct deposits their checks
into their banking account.
The bank, in turn, every month after deducting expenses and other
expenditures sends all the remaining money to the mortgagee’s mortgage
The banks and the home loan lenders do not want you to be
knowledgeable about LEAP.
The broad knowledge and use of Leap could cost them thousands of dollars in the
individual sense but millions or even billions of dollars if used in
the aggregate by many of their home loan borrowers.