Lenders are creative, and continue to come up with new ways to support you in purchasing and/or refinancing real estate.
A major development in the mortgage world is a revolutionary new line of credit that could enable you to own your home free and clear in about half the time, save thousands in interest - all with no change to your spending: The Home Ownership Accelerator.
This new program, originally from Australia, is designed to help you accelerate your principal payments as painlessly as possible by, in essence, using your home line of credit as your bank.
Here's a quick overview of how it works: you deposit your entire paycheck into the line of credit, which reduces your principal balance. Because interest is computed on your daily balance, you start saving interest immediately. You pay all your expenses out of your line of credit using the unlimited checks, ATM/Visa card, and on-line bill pay, just like your old checking account. Your money stays in your account until you need it, which keeps your principal balance lower (and therefore the interest you are paying lower).
In addition, you can put your savings accounts, money market accounts, and CD's into your line of credit - accounts that may be earning1% or less, further reducing the principal on your loan and as a result, save on the interest you pay on your home loan (and, in essence, earning a higher return on your money). You will still have access to your savings accounts.
This revolutionary home loan is really a new way of thinking about home loans. Call today for a free presentation and to determine if this product is for you.