The Home Financing Strategy Most People Have Never Heard Of

What if the money flowing through your checking account could reduce your mortgage interest every single day without requiring you to change how you manage your finances? Robert Love, mortgage advisor, wants more people to know about a home financing strategy called the Equity Accelerator that makes exactly that possible for the right borrower.

How It Works Differently From a Traditional Mortgage

A traditional mortgage has a fixed scheduled principal and interest payment that goes out every month regardless of what is sitting in your checking account. The two accounts operate independently and the money you have available on any given day does nothing to reduce your mortgage interest until you make a separate additional principal payment.

The Equity Accelerator works on a fundamentally different structure. Your income and deposits flow directly into your home loan account or a connected checking account. Every deposit immediately reduces the principal balance used to calculate your daily interest because mortgage interest in this structure is calculated on a daily basis rather than on a fixed monthly schedule.

The lower your balance is on any given day the less interest accumulates for that day. When you draw down that balance for normal daily expenses the balance rises again. But the days when your paycheck or other deposits were sitting in the account working against the principal produced less interest than a traditional mortgage would have charged for that same period.

What the Payment Structure Actually Looks Like

There is no traditional scheduled principal and interest payment in this structure. The required payment is the interest that accumulated during the previous month and that amount is the only required draw from the account approximately twenty days after the previous month ends. Your deposits and your positive monthly cash flow are continuously working against the principal balance in between those required interest payments.

You are not changing how you spend or manage your money day to day. You are changing where your money sits while you are not using it and that change is what drives the interest reduction.

Who This Strategy Is Designed For

The Equity Accelerator works best for financially disciplined borrowers with strong credit, adequate reserves, and consistent positive cash flow. When those conditions are present the strategy creates significant potential to reduce both the time it takes to pay off the home and the total interest cost of owning it over the life of the loan. Access to available equity is also maintained throughout the process rather than being locked in the property until a separate refinance or sale.

For the right borrower the structure changes the relationship between daily cash flow and mortgage cost in a way that a traditional loan simply cannot replicate.

Message Robert Love the word accelerator and he will show you exactly how it works with numbers specific to your situation. Contact Robert at 515-805-8870.

Sources

ConsumerFinancialProtectionBureau.gov
MortgageNewsDaily.com
FannieMae.com
NationalFoundationForCreditCounseling.org
Investopedia.com