Here is some sound investment advice. This works and it works very well. The secret to creating wealth using your mortgage as a cornerstone is having money left over at the end of each month.
Lets take a look at a couple who borrows $250,000 and has a payment using the Home Ownership Accelerator Mortgage of $743.00 per month. (Yes that would be the current payment) Let's assume that this couple saves about 10% of their income each month and that their NET INCOME is $10,038 per month. Saving 10% of their income means that they are putting $10,038 into your mortgage account each month. At the end of the month their principal balance will be reduced by $1,038.00 plus the average daily balance is reduced as well. At that pace they would pay ther loan off in 8.9 years, save $260,776 in interest cost (as compared to a 6.75% 30 year fixed rate mortgage) and have an equivalnt interest cost of 1.44% if compared to a 30 year fixed rate mortgage.
Now lets look at the same couple. Instead of reducing their principal balance by $1038.00 each month they invest most of it ($800.00) in other investments yielding 8% over the next 13.5 years. In this scenario this couple would still pay off their loan in 13.5 years, save $225,563 in interest cost when compared to a 6.75% 30 year fixed rate mortgage and have an equivalent interest rate of 2.19%. In addition they would have a paid off mortgage and have an investment account with approximately $79,000 dollars at the end of 13.5 years.
This can only be achieved by using the Home Ownership Accelerator as a mortgage product and having a positive cash flow. If your are a deficit spender each month this loan is not for you. If you are an individual who manages his/her money very well this loan will help you build a greater wealth and security than can be obtained by using any other mortgage product. The best part of it is this.............. YOU DON'T HAVE TO CHANGE YOUR SPENDING HABITS!
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