A homeowner with a $300,000 mortgage who contributes $3,000 annually into a 6% IRA will earn $180 after the first year. Using that same money in a mortgage accelerator, the homeowner earns $12,000. After 4 years, the IRA earns only $1,900 dollars, versus $47,000 in the accelerator. For homeowners with a mortgage, the mortgage accelerator system provides a far greater return on capital than any other investment.
Most people don’t consider their mortgage can be used as an investment. Looking at the big picture, the amount of mortgage interest that homeowners pay each year is far less than the income that they earn in their IRA. The net result is that for most of the years the mortgage is being repaid, interest expense far exceeds IRA income.
Over the course of the mortgage, the total interest payments the lender will earn are proscribed in the mortgage note. That interest, which is investment income, can be shared by the borrower by using a mortgage accelerator.
This consideration is not the way most people think about mortgage interest, but there is no denying the arithmetic behind the investment represented by a mortgage to a lender. That money must be paid. Using a mortgage accelerator, the borrower is splitting the investment income of the mortgage with the lender.
In the early years of a mortgage, it is not uncommon that for each dollar of principal reduced, another 6 dollars will be paid in interest. By using the principles of mortgage acceleration and simple arithmetic, each dollar of mortgage acceleration reduces interest by 600%. This is a real comparison of a mortgage accelerator to an IRA or any other investment. No other investment can benefit the homeowner nearly as much.
Homeowners who pursue other investment strategies cannot ever match the return afforded them by a mortgage accelerator. No single stock, mutual fund, or conventional investment can contribute as much to the homeowner’s net worth.
As a tax consideration, a mortgage accelerator has no tax implications or penalties compared to retirement plans. The return provided by a mortgage accelerator is tax free. But if a homeowner needs to tap into their IRA, they will pay tax on it as regular income, plus an early withdrawal penalty of up to 10%.
While a homeowner may derive a feeling of affluence from their IRA account balance, looks can be deceiving, and in this case, they are. A retirement account balance of $100,000 is worth only about $65,000 in spendable cash, or about 2/3′s. The reality is that the account balance provides a false sense of security to its owner.
But the financial returns of a mortgage accelerator are real, and they have a dollar-for-dollar benefit to the homeowner’s bottom line and net worth.
Another advantage of the mortgage accelerator is that it benefits the homeowner while he or she is in the early stage of their productive careers. Using a mortgage accelerator, the mortgage can be completely repaid in less than 12 years. This leaves a long window where the homeowner has a large discretionary income, unburdened by the cost of a mortgage. As a result, he or she can make high regular monthly contributions to a retirement plan. With time being on the side of the homeowner, a very large investment account can be realized.
The result is an investment account that will far exceed the amount that can be developed without the use of a mortgage accelerator. The reason is simple. We all have a limited amount of time and money, and it must be used to pay bills and plan for retirement. A mortgage accelerator makes the best use of time and money. The result is a large retirement nest egg.
There are several companies selling mortgage accelerators, and some of them charge thousands of dollars. Still, they are all based on the same arithmetic model and so all will work, so you don’t have to spend more than a few hundred dollars.
One of the best values is the Mortgage Magic System.
The Mortgage Magic System lets you use the bank’s money to your own advantage.
Using this System, a homeowner will owe less money to the bank each month. More of each month’s mortgage payment will go toward principal, and less to interest. The effect accelerates over time – hence the name mortgage accelerator.
In practice, regular income offsets the mortgage balance. For every dollar of income, you will owe a dollar less on your mortgage. As a result, less interest accrues for the month.
By using your regular income to offset your mortgage balance, you owe less on your loan. As a result, you owe less interest for the period! And of course, you have access to your money anytime you need it to pay your bills.
There is no downside risk to using a mortgage accelerator – only the upside benefit. Of course, the investment community does not want people to use their money in this manner, because they make money by selling stock.
You think these sounds too good to be true, but it’s not. So, accelerate your mortgage, protect your financial future, and generate a larger retirement account with a mortgage accelerator.