When you are a growing family where expenditure of children’ education and other expenses are lined up to haunt, the monthly mortgage appears another money-eating monster. Now you can decrease the amount of your mortgage installment without paying any hefty amount altogether. Mortgage acceleration is the name of that smart process that can turn your 30 years mortgage into 15 years. At the same time it decreases the amount of monthly mortgage.
Pre-payment in mortgage acceleration stands for principle amount strategically increased to reduce the total mortgage amount. The early payment of principal amount attracts excellent loan discounts from the banks that ultimately decrease the amount of installments as well. Let’s understand it through an example:
On a loan of $200,000.00, with an interest rate of 5% for 30 years, your monthly payment is $1,073.64. At the end of your term, you will have paid $200,000.00 in principal and $186,511.57 in interest for a total payment of $386,511.57. When you make the same minimum payments every month, you are effectively paying over $186,000 in interest over a 30-year period.
On the contrary in the process of you get a free loan discount from the bank. How it happens is, instead of paying a total of $186,000 in original interest, the bank has implicitly agreed to accept, as an example, interest payments of only $100,000. The stimulation for this free loan discount is your slightly enhanced portion of principal amount in your initial monthly mortgage. When you payoff principal earlier, the interest on rest of the amount decreases dramatically. It results into savings on your part of $86,000 while you still keep making regular monthly payments though much lower than before.
TQ-Max is the mortgage calculator that can apply this strategy on your mortgage. Signing up on TQ-Max is absolutely free, so take a step towards early mortgage payoff. Join www.tq-max.com
Wednesday, December 22, 2010
Tuesday, November 30, 2010
How credit card shopping can contribute to your debt reduction ?
A mortgage is usually the biggest and most important debt in a household. Consequently, most homeowners who carry a mortgage would like to pay it off as soon as possible. Generally, there are two ways to handle a mortgage:
1) Make your monthly mortgage payment as stated in your mortgage contract, for fifteen or thirty years, until the mortgage is paid off or
2) Accelerate the mortgage by sending extra principal payment in the form of one large lump sum payment or small monthly extra payments.
It’s clear that option will result in the saving of significant sums of money in interest payment.
Most mortgage loans are amortizing loans, which means that each payment consists of money toward the principal, or the original amount of the loan, plus the interest you’re being charged.
As you make payments, your equity grows. Equity is the difference between the value of the home and the amount of money that you owe on the loan. Your goal is to turn all of the value of your home into equity as quickly as you can. This will significantly reduce the amount of interest that you pay for the loan.
TQ-MAX provides a number of tools to quickly increase your equity and reduce your debt level. You can reduce your mortgage through cash back rewards earned on the everyday purchases from TQ-Max merchants. TQ-Max uses a special savings strategy that enables members to receive cash back rewards on their everyday purchases from high profile retailers including Sears, Kmart, PetSmart and more. These TQ-Max Cash Rewards are deposited in the member’s Mortgage Savings Account and used to accelerate their mortgage, which result in reducing the term or length of their mortgage and reduce overall mortgage interest.
Visit www.tq-max.com now to get cash back to payoff your mortgage and use the powerful TQ-Max mortgage acceleration calculator.
1) Make your monthly mortgage payment as stated in your mortgage contract, for fifteen or thirty years, until the mortgage is paid off or
2) Accelerate the mortgage by sending extra principal payment in the form of one large lump sum payment or small monthly extra payments.
It’s clear that option will result in the saving of significant sums of money in interest payment.
Most mortgage loans are amortizing loans, which means that each payment consists of money toward the principal, or the original amount of the loan, plus the interest you’re being charged.
As you make payments, your equity grows. Equity is the difference between the value of the home and the amount of money that you owe on the loan. Your goal is to turn all of the value of your home into equity as quickly as you can. This will significantly reduce the amount of interest that you pay for the loan.
TQ-MAX provides a number of tools to quickly increase your equity and reduce your debt level. You can reduce your mortgage through cash back rewards earned on the everyday purchases from TQ-Max merchants. TQ-Max uses a special savings strategy that enables members to receive cash back rewards on their everyday purchases from high profile retailers including Sears, Kmart, PetSmart and more. These TQ-Max Cash Rewards are deposited in the member’s Mortgage Savings Account and used to accelerate their mortgage, which result in reducing the term or length of their mortgage and reduce overall mortgage interest.
Visit www.tq-max.com now to get cash back to payoff your mortgage and use the powerful TQ-Max mortgage acceleration calculator.
Do not pay-off your mortgage early – or so they say …
How comfortable are you with knowing the truth that you are not the true owner of your home, but that your lender is (depending on the amount of equity you have on your loan at the moment)? And that no matter how wonderful a price you’ve appeared to have “gotten” on your home, you are paying an enormous, hefty premium to your lender that practically offsets any sort of price benefit you’ve obtained on your home in the first place ?
Consider the following example :
Example: On a loan of $200,000.00, with an interest rate of 5% for 30 years, your monthly payment is $1,073.64. At the end of your term, you will have paid $200,000.00 in principal and $186,511.57 in interest for a total payment of $386,511.57.
Even at such standard low interest rate of 5%, this 30-year mortgage will cost you close to double the purchase price of your home over the entire mortgage term. When you make the same minimum payments every month, you are effectively paying over $186,000 in interest over a 30-year period. However, there are ways to lower that interest and accelerate the speed of reducing your mortgage debt, and one of the best methods to do this is by mortgage pre-payment.
TQ-MAX offers you a powerful mortgage acceleration system that shows you how to pay-off your mortgage quicker and realize significant savings in mortgage interest. Small amounts of principal pre-payments can make a significant difference in your overall interest paid.
TQ-Max members enjoy cash back rewards from shopping at over 500 affiliated merchants. Cash back rewards can be used to enhance your mortgage acceleration program. The system also allows you to put your mortgage acceleration on auto-pilot.
Visit www.tq-max.com to access the powerful TQ-Max mortgage interest calculator and shop for cash back rewards.
Consider the following example :
Example: On a loan of $200,000.00, with an interest rate of 5% for 30 years, your monthly payment is $1,073.64. At the end of your term, you will have paid $200,000.00 in principal and $186,511.57 in interest for a total payment of $386,511.57.
Even at such standard low interest rate of 5%, this 30-year mortgage will cost you close to double the purchase price of your home over the entire mortgage term. When you make the same minimum payments every month, you are effectively paying over $186,000 in interest over a 30-year period. However, there are ways to lower that interest and accelerate the speed of reducing your mortgage debt, and one of the best methods to do this is by mortgage pre-payment.
TQ-MAX offers you a powerful mortgage acceleration system that shows you how to pay-off your mortgage quicker and realize significant savings in mortgage interest. Small amounts of principal pre-payments can make a significant difference in your overall interest paid.
TQ-Max members enjoy cash back rewards from shopping at over 500 affiliated merchants. Cash back rewards can be used to enhance your mortgage acceleration program. The system also allows you to put your mortgage acceleration on auto-pilot.
Visit www.tq-max.com to access the powerful TQ-Max mortgage interest calculator and shop for cash back rewards.
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