Category Archives: Mortgage Acceleration

Mortgage Acceleration

American consumer finances have got turned on their head in the last few years. High unemployment and falling house prices have all taken their toll on people’s net worth. Some people have underwater mortgages on their house where they owe more than the house is worth. The credit crisis has shown people cant rely on the traditional approaches if they want to be financially free sooner in life. Financial freedom for many people means ultimately paying off their mortgage and being debt free. But after the credit crisis, they now know that the existing financial systems are not going to help.
So what do you need to get financially free from your mortgage? You need some new thinking…

The traditional mortgage advice is to get a 30 year fixed mortgage, paying the fixed month on time every month. However this is exactly what the banks would like you to do. They get there fixed monthly payment every month for 30 years, and you end up paying more interest than principal on the loan. Go to work, pay the bank, work harder, pay the bank, repeat every month! We are not trying to be down on hard working people who can only afford to pay the standard mortgage payment every month – just recognize that the math is working in the bank’s favor not yours!

The traditional mortgage accelerator advice is to do the good old fashioned way of saving extra each month and overpaying on your mortgage. One technique is to overpay principal every year as you can afford it. Another technique suggests adding a small amount every month to your standard mortgage payment. Yet another suggests changing your mortgage payment to be biweekly (every 2 weeks). These are sound techniques as they will reduce principal faster earlier in the life of the loan, and ultimately greatly reduce the amount of interest you pay to the bank. This is great advice and it works well. But the main issue here is that you are always using your own savings! Once you have invested that saved money in the mortgage, you aren’t free to invest it for other things – you have lost opportunity cost.

Overpaying on your mortgage if you can afford to do it is obviously a very good thing over the longer term. However in the short term you still have to shovel your own extra hard earned cash at the mortgage. Once it’s in the mortgage you no longer have any access to it (you have lost the opportunity to invest it elsewhere).

We have developed a technique where you can borrow money incredibly cheaply at 1% to 2%, then use that money to pay your mortgage payments to the bank several months in advance. Effectively you are running your own bank – borrowing money at low rates to pay off your higher rate mortgage much earlier than normal.

This technique combines traditional mortgage over payments ideas with how to get the cheap loan, to save you hundreds of dollars a year and help you pay off your mortgage early.

You need good credit and discipline to execute these techniques successfully. However we have now proven that they work by testing it out for 2 years since 2012, and successfully applied this mortgage acceleration technique to over $30,000 in mortgage payments. We have christened the idea the “Float My Mortgage” method.

The “Float My Mortgage” method has these benefits that will work with your existing mortgage:

Pay less mortgage interest – Save mortgage interest payment by overpaying principal on your mortgage today. However don’t actually pay the principal payment out of your own pocket until many months in the future.

Invest – start making money today on the cash that you would have paid towards your mortgage payments and overpayments.

Beat inflation – postpone mortgage payments and overpayments. Make payments today, but don’t actually pay the mortgage provider until many months in the future. $1000 today is worth more than $1000 next year.

You can purchase the full method in the Amazon Kindle eBook called Float My Mortgage: Pay your mortgage many months in advance – without using your own money