We all know that putting extra payments down on your mortgage is going to pay off your mortgage faster and save you money. But what not everyone knows are the little insider tips that allow you to know to the penny, EXACTLY, when to use them to pay off your mortgage, how much to make them in, and exactly what you'll save as a result.
See, it's really NOT about how many you make, or how often, or even how much you make them in. When you're trying to pay off your mortgage faster their is only one thing that matters.
Timing.
You see mortgages are structured pretty creatively. Mortgage companies tell you that you're only paying the 5-7% rate, but they never explain what that really means. Our mortgage payments are almost completely wasted on interest at the beginning of our mortgage. This is what makes it so difficult to pay off your mortgage.
What it means is that a $4000 payment may only $250 of principle. The entire rest of that payment goes to PURE INTEREST. It's basically burning a hole in your pocket when it should go to pay your mortgage off.
Now, here's how to beat it. If you make a $250 principle payment on its own... right before you make the $4000 payment then guess what? You just completed that entire payment without wasting $3750 on interest. You moves you amortization down the line to pay off your mortgage. Sure, you'll still have to make a $4000 payment, but you pay your mortgage off $3750 earlier and it only cost you $250! That's how banks think.
If you could get $3750 for every $250 you put in, how many times would you do it? As many as you good and you wouldn't just pay your mortgage off, it'd evaporate.
If this doesn't quite make sense yet then grab a copy of your amortization schedule or The Mortgage Loophole Report and analyze how they'll pay off your mortgage. You'll see.
So...
Catch #1 - If you make a small prepayment at the beginning of the term, you'd pay off your mortgage MUCH earlier than you would by making a bigger principle payment at the end of your mortgage.
When you put the money in at the end you don't even pay your mortgage off as fast or save near the amount of interest because most of your payment is going to principle anyway. As you pay off your mortgage they weaken. Your mortgage pay off time literally depends on this.
So, the secret to pay off your mortgage is to understand the way a mortgage amortization has been structures to accommodate certain methods to pay off your mortgage.
Catch #2 - Although you probably realize that this information is important to pay off your mortgage you probably won't be able to apply it the the extent that you wish you could. Honestly, if you had all the extra cash to pay off your mortgage with, then you'd have made a bigger down payment on your home. It's not until most of us have already been trying to pay off our mortgage that we start to get the extra cash to put towards the pay off.
There is a solution.
There is a "mortgage loophole" that home owners are finally realizing and using to pay off their mortgage. It truly is a revolution in the mortgage industry to help people pay off their mortgage. Don't expect your local bank to tell you about it. They not only don't want you to pay off your mortgage early but they haven't been spreading the news among their mortgage brokers.
Anyway, I'd better stop upsetting banks with this insider information. Hopefully you can apply this information to pay off your mortgage immediately before your mortgage begins to amortize.
Also, if you truly want the keys to pay off your mortgage lightening fast and save big bucks, then grab your free copy of The Mortgage Loop Hole Report.
Related Articles
The 6 Methods to Pay Off Your Mortgage Faster
By: Ben Schmitt | 17/03/2008 | Mortgage
There are only 6 ways to pay off your mortgage early and if you don't know them, you'd better be ok with leaving tens of thousands, sometimes even hundreds of thousands, of dollars on the table.
Pay Off Mortgage 2x Faster
By: Ben Schmitt | 17/03/2008 | Mortgage
If you want to pay off your mortgage, be free and save thousands of dollars in interest then there is a simple way for you to do it.
The Secret to Pay Off a Mortgage: the Snowball Effect and Prepayment Timing
By: Ben Schmitt | 27/03/2008 | Mortgage
I'm going to show you how to save the absolute maximum in interest and how to pay off your mortgage faster than you ever imagined.
Mortgage Amortization Schedule - Learn to Save 84 Percent Interest With an Effortless Method
By: Ben Schmitt | 19/03/2008 | Mortgage
There is a major misnomer with people's mortgage amortization schedule that cost Americans billions of dollars every single year. If you understand how to take advantage of it however, you can literally save tens of thousands of dollars in interest per year.
The Mortgage Amortization Schedule Secret
By: Ben Schmitt | 21/03/2008 | Mortgage
Many people fail to make the correct moves in their mortgage amortization schedules because they don't quite understand the repercussions of their actions, or inactions for that matter. It's incredibly rare that home owners truly understand mortgage amortization structures and what they imply.
The Secret of Mortgage Amortization and How to Pay Off Your Mortgage 7x Faster
By: Ben Schmitt | 27/03/2008 | Mortgage
Don't make a single prepayment, or regular payment for that matter, until you've read this article completely.
It's a loophole in the banking and mortgage industry and you can get the full story about it at The Mortgage Loophole Report.
Beat Rising Interest Rates by Overpaying your Mortgage
By: Philip Smith | 08/03/2007 | Mortgage
Beat that Quote looks at spending a little extra each month to overpay on your mortgage and eventually save thousands. Overpaying on a mortgage need not take up all your spare income but may prove to be a very sound investment over the duration of the mortgage.
The Sub-prime Boondoggle – How to Get Past it
By: Dewey Kearney | 22/10/2007 | Real Estate
So what caused the current sub-prime problem in the first place? Inflated prices based partially on speculated buying. I can remember people I worked with telling of the prices in the next phase of homes in their tracts increasing by $20,000 - $30,000 within a year. That’s not much by today’s standards but it was then and it didn’t stop.
Got a Question? Ask.
Ask the community a question about this article:
Frequently Asked Questions
Making mortgage accelerator work
By: yoander | 27-05-2008
I want to take advantage of the mortgage accelerator programs out there because I want to own my house free and clear in as little time as possible. However, I have no equity in my house. I have too much debt so I can't get another loan such as a heloc or personal loan. And from what I understand, without a second smaller loan, the system won't work. Am I just SOL?
Lala
By: LiLiKa | 13-05-2008
Can shi fly?
Can someone hack into my personal information using an MP3 CD burned on my computer?
By: QC23 | 11-04-2008
Is it possible to gain access to personal information stored on a PC (such as passwords, etc.) from a burned MP3 CD made by that computer? I suspect someone has been doing some digging to access my personal accounts and passwords and he recently asked me to burn him a music CD from my computer? Will he be able to access other infomation that is stored on my computer from this CD?
What if a police officer lets a complete stranger hear your personal info?
By: mcconley | 09-04-2008
What if a police officer lets a complete stranger listen to your name birthday and SS # even after you ask who that person was, is it wrong? Can the charges be dropped against you?
Do bird feeders help or harm bird populations?
By: twincitiesmark | 08-04-2008
Do bird feeders help or harm bird populations?
How to make a phone call in j2me and start the ...
By: sushrut | 08-04-2008
how to make a phone call in j2me and start the timer when call is connecetd???
Q&A Powered by:
More from Ben Schmitt
The Secret of Mortgage Amortization and How to Pay Off Your Mortgage 7x Faster
By: Ben Schmitt | 27/03/2008 | Mortgage
Don't make a single prepayment, or regular payment for that matter, until you've read this article completely.
It's a loophole in the banking and mortgage industry and you can get the full story about it at The Mortgage Loophole Report.
The Secret to Pay Off a Mortgage: the Snowball Effect and Prepayment Timing
By: Ben Schmitt | 27/03/2008 | Mortgage
I'm going to show you how to save the absolute maximum in interest and how to pay off your mortgage faster than you ever imagined.
The Mortgage Amortization Schedule Secret
By: Ben Schmitt | 21/03/2008 | Mortgage
Many people fail to make the correct moves in their mortgage amortization schedules because they don't quite understand the repercussions of their actions, or inactions for that matter. It's incredibly rare that home owners truly understand mortgage amortization structures and what they imply.
Mortgage Amortization Schedule - Learn to Save 84 Percent Interest With an Effortless Method
By: Ben Schmitt | 19/03/2008 | Mortgage
There is a major misnomer with people's mortgage amortization schedule that cost Americans billions of dollars every single year. If you understand how to take advantage of it however, you can literally save tens of thousands of dollars in interest per year.
Pay Off Mortgage 2x Faster
By: Ben Schmitt | 17/03/2008 | Mortgage
If you want to pay off your mortgage, be free and save thousands of dollars in interest then there is a simple way for you to do it.
The 6 Methods to Pay Off Your Mortgage Faster
By: Ben Schmitt | 17/03/2008 | Mortgage
There are only 6 ways to pay off your mortgage early and if you don't know them, you'd better be ok with leaving tens of thousands, sometimes even hundreds of thousands, of dollars on the table.
The Real Insider Secrets of Mortgage Prepayments
By: Ben Schmitt | 01/12/2007 | Mortgage
Everyone knows that making mortgage prepayments to the principle pays off your mortgage faster and saves you money. But, not everyone knows this little insider tip that allows you to know to the penny EXACTLY how to pay, when to pay, how much to pay and what it will save you as a result.
How to Pay Off Your Mortgage 2x as Fast as You Currently are
By: Ben Schmitt | 23/11/2007 | Mortgage
Want to have a mortgage free life? There's a simple way to pay off your mortgage, save tons of interest, and it's easy to do.
Finance 
