Thinking and Acting for the Long-Term: Mortgage Acceleration Programs

We Americans have a funny way of dealing with major purchases. When we borrow money for a home, we tend to resign ourselves to the idea that we’ll be in debt forever. It’s easier to quantify the impact of a monthly payment on our life than the interest we’ll accrue over the course of what seems like a lifetime. So we put it off and assume we’re settled in. We take on the longest payment plans we can – for mortgages and car payments – to improve cash flow – and we never get free of debt. We say we want to make decisions based on what’s best for us in the long run, but when it comes down to it, we don’t always do it. If only there was an easier way to rationally make better long term financial decisions.

After doing real estate closings for more than 25 years and seeing the Truth-in-Lending Statement, where my clients faced the fact that they were paying 2-1/4 to 2-1/2 times the original amount they borrowed if they paid off the mortgage over the length of its term, I started researching mortgage acceleration programs. My husband and I had been doing it with our mortgage – turning a 30 year mortgage into one that will complete in 18.5 years (a year from now!), so the strategy seemed incredibly logical to me.

Here's how it works: Using the power of interest, the algarhythm-based software program weighs the rates of your loans with the value of your income, determining precisely the best time to make payments, effectively raising your monthly payment while lowering your principle. Mortgage acceleration programs are cash management systems that can help you pay off your mortgage in ½ to 1/3 of the time. They help you budget, determine the time value of your purchases, and determine the best time to make a purchase based on market conditions and your own cash flow.

These types of programs have been used very successfully in Australia for more that the past 12 years. In fact, currently, more than 30% of all homeowners in Australia and more than 25% of homeowners in the U.K. use mortgage acceleration programs (as opposed to 1% in the United States). But that is changing. In the wake of the recent economic crisis, many Americans are realizing the value of long-term financial thinking.

As an attorney, I’ve dedicated a significant portion of my practice to helping people get out of debt, and I've seen too many people struggle unnecessarily. I’ve done a lot of research in the area of mortgage acceleration and found a particular company that I think is the most effective and checks out as solid and reliable. I’ve become involved with United First Financial®, because I’ve seen it help my clients pay off their mortgages and take steps towards debt-free living. If you’re interested in learning more about the program, or would like to set up a time for a free consultation, please contact me! I’d be more than happy to discuss your options. You will never, ever regret thinking ahead and planning for the future.