How to Pay Off
Your Mortgage in 5-10 Years or Less Without Changing Your Lifestyle

 
Remember the first time you shop for your home? How many other homes in the neighborhood look like yours? Do you want to buy just one home or two or three other homes just like yours too?
 
Only one, right?
 
But when you went to the bank or mortgage company to sign off on that mortgage, did you realize that you would be buying instead of one but 2-3 homes for the life of that mortgage? 

Your banker or mortgage broker probably didn’t tell you that by the time you’re done paying off your mortgage, you will have paid nearly 2-3 times the value of your home.

For example, if you take out a $100,000 mortgage at 7% for 30 years, by the time it’s all paid up, you will have paid nearly $240,000. That’s $140,000 of interest on top of your principal. 
 
That’s like buying one house for you,
and a house or two for the bank!
 
 
But That’s Not All…
 
We’ve all been conveniently taught to take out a 30 year mortgage, right?  But will we all stay in the same home for all that 30 years? Probably not, right?  Most people only stay in their home for 5-10 years, then move on. They never pay off the mortgage. They simply sell the home, take whatever profits or equity they make and invest into another home or put somewhere else.
 
If that’s the case, why do we Americans continue to take out 15, 20, 25, 30 year mortgages?

Is it because it’s CHEAPER to pay for a 30 year mortgage than it is for a 15 year?

 
Let’s take a look.
 
Suppose you take out a $100,000 mortgage at 7% for 30 years and plan to live in the home for exactly 10 years, then sell it. Here’s what your mortgage payments and balance would look like. 
 
 
 
You would have a monthly payment of $665.30.  Since you plan only to stay in the home for 10 years (120 months), your total payments would be $79,836.
 
Here’s A Shocker. . .
 
After all those payments totaling $79,836 …you realize that it almost equals the original price of your home? That’s almost 80% of the original price!
 
And yet, you’ve barely accumulated $14,188 (14%) toward principal, but the rest, $65,648 (65%) went to interest payments, right to the bank’s bottom line.

So, is it CHEAP?
 
Obviously, NOT!
 
Even More Shocking. . .
 
You still have 20 years left AND 240 more payments of $665.30 each, for a total of $159,672.
 
Ouch!
 
And Here’s Why…
 
Throughout the 10 years,you’ve average 82% of every payment towards paying interest. That means, for every dollar you pay, 82 cents go toward interest and only 18 cents toward principal.
 
How Can Anyone Build Equity At This Rate?
 
Are banks being dishonest?
 
The answer is “No”.
 
That’s just how mortgages work and it’s how the banks make their money. 
 
So, how can you make the mortgage work for you?
 
 
If the typical 30 year mortgage takes 30 years to pay it off, then the only way to pay off the mortgage as fast as you can without refinancing, making a lump sum payment, paying extra out-of-pocket, signing up for a bi-weekly mortgage, or changing your lifestyle…

 is to use a Home Equity Acceleration Plan (HEAP).

 
HEAP is like an “equity catalyst”. Like a chemical catalyst or “reaction booster” in a chemical reaction, HEAP is an equity catalyst in a financial transaction.
 
For example, if you have a glass of water and you let it sit outside in the sun, there will be a chemical reaction between water and sunlight. Eventually the water will evaporate after several hours. 
 
However, if you put that glass of water on top of a fire and let it sit outside in the sun, the chemical reaction between the fire, water and the sunlight will speed up, and water will evaporate in minutes. In this case, the fire acts as a catalyst or “boost” to speed up the evaporation process.
 
In the same way, we can add HEAP to speed up the mortgage payment process and build equity more rapidly.
 
For example, let’s suppose you have the following:
 
Using HEAP as an “equity catalyst” combined with your income, instead of paying off your typical 30-year mortgage in 30 years, you would be able to pay it off in 8.3 years. 
 
 

 
Not only will you be able to pay it off in 8.33 years for a total of $128,866, but your interest payments would only be $28,993. Your Average Interest Volume would be 39%. That means for every dollar you make a payment, only about 39% goes into interest, 61% goes toward principle.

In fact, your interest payment is actually less than the average interest volume of 39%. 

 
So, which is better option?
 
 
 
Of course, paying off early and paying as little in interest as possible make sense. To learn more about how the HEAP Equity Catalyst may speed up your mortgage payment and help you pay off your mortgage in 5-10 years or less and become debt free sooner than later, click here and an Advisor will contact you promptly.
 

 

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