Mortgage reduction goes by many different names such as accelerated mortgage,
biweekly or bi-weekly mortgages, prepayment mortgage reduction, equity acceleration,
and many other names too numerous to mention.

Over 90% of mortgage holders in America have heard of mortgage reduction.
Yet less than 15% of mortgage holders actually use it.

A mortgage is the single largest burden (purchase) you will ever make in your lifetime…
It’s also the most priceless thing you will ever own - after all, it’s your home.

We’ve all heard of the bi-weekly mortgage. In a nutshell, this is how a bi-weekly works.
Let’s say for example, your mortgage is $1,000 per month. On the first of the month,
you will write a check for $1,000 and send it to your mortgage holder.

And you will do this every month for the life of the mortgage - 30 years.

With a bi-weekly program, you simply change the way you make your payments.
Instead of writing a check for $1,000 on the first of every month,
$500 is deducted from your checking account every 2 weeks.

It’s as simple as that!

However, since there are 52 weeks in a year, you will make 26 payments of $500 each,
which totals $13,000 for the year.

If you were paying your mortgage the conventional way, you would write a $1,000 check
once a month for 12 months, for a total of $12,000 for the year.

The advantage of the bi-weekly is that over the course of a year, without straining
your budget, you are making an extra monthly payment. This extra monthly payment
gets applied to the principal of your mortgage, reducing your principal.
Iin this example your principal is reduced by $1,000.

This reduction of your principal balance reduces the amount of interest you will pay.

Just this one change alone in the way you pay your mortgage will eliminate 5 Years
of payments off of your 30 year mortgage.

This will reduce your total interest payments by a whopping $43,300.

For more information visit:
www.MortgageReductionEbook.com

This entry was posted on Wednesday, October 31st, 2007 at 2:29 pm and is filed under Mortgages. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.