The Mortgage Amortization Schedule Secret
Written by admin on February 26, 2010 – 5:39 pm -
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.
Here, I’m going to attempt to explain those things to you so that you can begin to make more educated decisions when it comes to analyzing how your mortgage amortization schedule should be dealt with.
There are a few mortgage amortization concepts that must be understood first before one can fully grasp the importance of making wise financial decisions when paying mortgage interest. I’ll start with the simpler ones…
Concept #1: The majority of your monthly payment goes to pure interest at the BEGINNING of the mortgage amortization schedule. It’s not until the end of the mortgage amortization that your payments even begin to pay down the principle (interesting how it’s set up that way… thanks bank!)
Now why is that?
Well, that brings me to my next point…
Concept #2: Interest during your mortgage amortization is calculated off the principle balance. The more you owe, the more of your payment goes to the mortgage interest.
The good news is that if you understand these to things, you can REALLY take advantage of the situation. This is what they mean. Your mortgage amortization is like a train. A gigantic… heavy… slow… train. You see it takes a LONG time to get rolling, but if you do, the amount of interest you will save and how much you can speed up your mortgage amortization will absolutely blow you away.
To effectively cut your mortgage amortization schedule in half you need to jump start this train with a BANG.
Now, a lot of people talk about extra payments and prepayments, but the bottom line is, all those things are meaningless if your mortgage amortization train is already chugging. However, if you’re not at that point, you need to realize something. It may seem stressful and hard to think long term. But if you could truly realize how much interest and how many mortgage amortization payments you put into your pocket when you give up your extra money to the principle, you would be scrounging the sofa for pennies this very moment! You wouldn’t order pizza for a year. I’ll guarantee it.
A solid understanding of just those two concepts will really change the way you think. Ponder them for a while as you look at your mortgage amortization schedule.
The problem is that not all of us can afford to jump start the mortgage amortization schedule. The solution, a nice little mortgage loop hole that’s been intentionally left in the banking industry and in every one of our mortgage amortization schedules. So… I’ve put together a report that shows how it works. BUT you must first understand these concepts before you can begin to apply the mortgage amortization loop hole.
There is a report on this very thing. It’s the first of its kind, and you can check it out and start saving here: The Mortgage Loophole Report
People are cutting their mortgage amortization schedules in half and have been saving over 84% interest by applying the loophole into their lives.
The mortgage loophole report at bankingandmortgagesecrets.com
Tags: Amortization, Mortgage, Schedule, Secret
Posted in Amortization | No Comments »
Mortgage Amortization Schedule – Learn to Save 84 Percent Interest With an Effortless Method
Written by admin on February 26, 2010 – 3:39 pm -
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.
This deception in our mortgage amortization schedule is perpetuated by the banking industry to make profits and they have won the battle for the most part.
To start, let’s look at how they calculate the interest on our mortgage amortization schedule. See, there’s no such thing as a ‘fixed’ rate. And actually, the rate is MUCH higher for most of us. It doesn’t even matter if the mortgage amortization schedule shows a fixed monthly payment and the rate they tell you is fixed. It’s still an adjustable interest rate that intentionally blocks you from from paying off your mortgage and stretches out the mortgage amortization schedule for much longer than it ever should.
For example, let’s use a 6%, $150,000 loan with a 30 year mortgage amortization schedule.
Calculations with expose that 82.9% of every dollar of your payments go to pure interest in the first year. The interest rate will change and adjust based on where you’re at in the mortgage amortization schedule.
This is crucial in order to take advantage of the “Mortgage Loophole” and restructure you mortgage amortization schedule naturally.
In the 15 year of the mortgage amortization schedule, $160,000 would have been forked out in monthly payments. THIS IS MORE THAN THE ORIGINAL LOAN AMOUNT, and yet over 70% of the mortgage is still yet to be paid!
In the 19th year of the mortgage amortization schedule you’d still pay about 50% interest your mortgage payments. Don’t think you can get out of this by refinancing. That only makes it worse, even if it’s a much lower rate.
You’d think you’d be through the toughest part of the mortgage amortization schedule after 21 years, but, you’d only be half way through the mortgage amortization schedule. And, at this point in the mortgage amortization schedule principle payments have lost most of their interest saving power.
It seems fair to say that lenders have the mortgage amortization schedule skewed in their favor quite a bit. It’s definitely not an accident.
Banks know people keep their loan for an average of 5-7 years and if they keep it for 30 they usually try to pay down the principle when they can. This is why they front load the interest in your mortgage amortization schedule. That 6% interest rate only applies if you trudge through the entire 30 years and they make sure your principle payments do less and less as time goes on.
Our mortgage amortization schedule is basically a giant wealth destroying liability. It MUST be restructured if any of us hope to salvage our wasted finances and hard work of getting through our mortgage amortization schedule. 7
SO, you’ll need to see how the mortgage amortization schedule loop hole and timing concept works.
I read a lot what others have to say and no one seems to understand this about the mortgage amortization schedule. They confuse it every time, but you can utilize it effortlessly just by following The Mortgage Loophole Report
People have been cutting over 84% interest out of their mortgage amortization schedule and paying off their homes 7x quicker with that report.
Tags: Amortization, Effortless, Interest, Learn, Method, Mortgage, Percent, Save, Schedule
Posted in Amortization | No Comments »
