Don’t make a single prepayment, or regular payment for that matter, until you’ve read this article completely.
First off, we all know that the only way to save interest and pay off your mortgage early is to make prepayments to the principle. So, let’s start with this, if you make $100 prepayment at the beginning of your mortgage, it save you more money and pays off your mortgage faster then any other time. A prepayment at the end… is meaningless. This is because of the way mortgage amortization schedules are structured.
At the beginning, you can lower the balance and prevent all of your monthly payments from going to pure interest. More goes to principle further knocking down the balance even more. This creates a snowball effect that saves you interest and pays off your mortgage incredibly fast.
But you see, this amortization structure completely takes the punch out of your principle payments right when the bank knows you’ll have the money to prepay your mortgage… at the end of the mortgage term.
So, you’re either throwing away money to interest by making traditional mortgage payments, or you’re throwing away principle prepayments that don’t do anything for you. We’re basically stuck making them at the beginning and then having to stop making them later.
However, there is a solution.
What if you could take ALL money that you’d normally be prepaying each month throughout the amortization schedule of your mortgage and pay it all at the beginning?
You can. It’s really not that hard. It’s the big banking secret and it works like this: You take out a large amount from a line of credit (type varies) and make a lump some payment to your mortgage. NOW, you simply use that extra money to pay down the balance on the credit over time. Don’t worry, the math works out so that you save FAR more interest on your mortgage then you’d ever pay out for the line of credit.
It’s a loophole in the banking and mortgage industry and you can get the full story about it at The Mortgage Loophole Report. It’s pretty advanced method of doing things but it’s absolutely necessary for anyone who wants to cut interest and pay off their mortgage decades earlier.
HOWEVER, the only way to guarantee the fastest pay off time and best interest savings you’re capable of getting is found right here: The Mortgage Loophole Report