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Category: Finance and Credit Current Grade: B- Total Views: 426 Member Comments: 3 |
Posted on: 08/09/2008 Posted by: mikelanky Blog Points: 9 View all blogs >> |
Paying off your mortgage is the actual American Dream, as against actually owning property.
Somehow you don't often hear of people paying off their mortgages. There is always a reason why you have to access the equity for some urgent expense, pushing the mortgage up, most often at higher interest rates.
Living Free and Clear is a software program that makes use of a HELOC to manage finances. At certain points the software triggers time lines to move lump sums into the mortgage to pay down the principal.
I welcome you to view some videos of the program and see the spreadsheet projections. It is simple and easy to use.
http://viralurl.com/baobabinc/livingfreeandclearproduct
Generally, if you decide to do it yourself, you are tempted not to pay the lump sum into the mortgage, but use it for something else!! Guilty as charged!!
There is a certain amount of logic to the system. That said, buying a software package for a few thousand from a multi-level marketing firm is not the best way to get the job done.
What is really going on is the idea that many days of the month people have surplus cash and they also have savings that is not touched each month. If the person lives more hand to month then they will not benefit from the program.
If you take the surplus cash and apply it to the outstanding loan balance for part of the month then less interest is owed. With the right amount of surplus and the right interest rates a significant reduction can be achieved.
The math is pretty simple. Many folks can just build a spreadsheet or use a hand calculator to see the effect. Picking the right HELOC can matter a bit. John Corey
[strong]John Corey [/strong]
Real Estate Investor (REI) with over 20 years of experience. Multiple states and countries; present portfolio spans 11 time zones.
[Color="blue"]Always open to answering questions. See the[/color][color="red"][em]contact page[/em][/color] [color="blue"]on my blog; link below.
[strong]Pay it forward[/strong].[/color] [link="http://www.ChelseaPrivateEquity.com/blog/"] www.ChelseaPrivateEquity.com/blog[/link]
So you use a Loan (heloc) ,that generally has a higher interest rate than a mortgage, to pay your mortgage.
Do people actually fall for this stuff????