To View a list of all articles
about mortgages click here
Find Almost Anything
Enter Search Words:
70
Tips To Get Your Home Ready for a Quicker Sale at
a Higher Profit. Click
Here Free
Report
How Can Home Owners Pay Off A Mortgage 10 Years Sooner By, Of All Things,Getting Rid Of Their Checking Account?
How Can Home Owners Pay Off A Mortgage 10 Years Sooner By, Of
All Things,Getting Rid Of Their Checking Account?
New Loan Features Can Save Home Owners Hundreds and
Thousands of Dollars Without Spending One Penny In Extra
Payments
Everyone is always looking to save money one way or
another. This is especially true with their biggest bill of all,
the house payment.
But is there a way to do this without having to cut back
on the things that they really like to do? For some homeowners
it is a reality and the savings are, quite frankly, nothing
short of amazing. The simplicity of this plan is laughable, and,
at the same time, a stroke of genius. Here it is: "Replace The
Checking Account with A Home Equity Line Of Credit and It Will
Save A Ton of Money."
That is pretty much it, but let's breaks it down a bit
more. A Home Equity Line Of Credit (HELOC) has 2 unique features
that no other home loan offers that make this possible. They
are:
1. It is a Revolving Account-- Just like a checking
account or a credit card. That means money can be deposited and
withdrawn when needed. That is why the lender issues a debit
card and checks when someone opens a HELOC.
2. Interest Compounds Daily Instead Of Monthly--
While this may sound like a negative, it is really a benefit.
Here is an example: Say you just got paid at work. Go to the
bank and deposit the check, but deposit it into the HELOC
instead of the checking account. Go to the store to buy some
groceries. Pay them with a debit card or checks, but use the one
from the HELOC instead of the checking account.
Here is how money is saved with this program:
Remember how the interest compounds daily? Go grab a bank
statement from the checking account. See where it says "Average
Daily Balance." That means with all of the deposits and
withdrawals, this is the average amount in the account.
Put this money into a HELOC it will lower the balance of
the loan, thus lowering the payment. Because it compounds daily,
it does not matter if deposits and withdrawals happen all of the
time. Any amount deposited into the HELOC above the basic
interest goes 100% to lowering the principal balance. Let's work
with some hard number and see it in action.
Take a $150,000 HELOC at 8%. This would make the full
payment $1,100, with $1,000 of that going toward interest. A
whopping $100 goes toward principal. The average daily balance
in the checking account is $10,000.
Deposit the $10,000 into a HELOC, making the balance
$140,000. That would lower the interest part of the payment from
$1,000 to $933, a savings of $67. Of the $1,100 payment, $167
goes toward principal instead of $100. That might not sound like
much, unless it is put in these terms:
This will save $132,000 in interest on a $150,000 loan
This would shave a full 10 years off the loan. It would be paid
off in 20 years instead of 30. That is 120 less payments of
$1,100 per month. A lot of savings for the average
homeowner.
Conclusion: After reviewing the facts features and claims
in regards to this loan program, I can honestly say it is one of
the only ways of saving a lot of money without having to scrape
money together and go on a stricter budget.
With Over $100,000,000 in Home Loans Funded per Year, Nick
Krehnke, is truly an "Expert's Expert" in the area of Home
Finance and Investing. He is also the author of "How to Retire
Rich with Real Estate, By Owning Just One Home"
Borrowers facing problems with the Mortgage Industry
Mortgage industry is playing an important role today to meet the people's needs. The industry is constantly engaged in making changes and bringing new ways to assist people in some of their most important personal and financial decisions. The... ...read more
Creative Home Equity Strategies For Retirement
The Baby-Boom generation is nearing retirement and it is clear that millions of aging Boomers are financially under prepared. Reasons are many - poor savings habits, rising medical costs, the demise of guaranteed corporate pensions, and the dreaded... ...read more
Eric Van Aro Releases Contemporary Jazz CD Friends
FOR IMMEDIATE RELEASE
Milan, Italy--November 28, 2005-- Artist Eric Van Aro has
a great voice filled with warmth and melody, which he had
applied to some well-known classics and originals in his
appealing new album titled Friends .
... ...read more
Get Private Mortgage Insurance
Buying a house doesn't have to be as impossible as it seems.
Traditionally, the criteria for buying a house has boiled down
to three things: your credit rating, income, and a down payment.
The common belief among most hopeful home buyers is that... ...read more
