Reduce Your Year Mortgage To Years Using Mortgage Cycling

With all the talk lately about Mortgage Cycling versus Bi-Weekly Mortgages which one is really right for you? Choosing the correct one could literally save you thousands of dollars and shave off approximately years on the life of your year mortgage. So a little background on the principal of each program needs to be told. Bi-weekly mortgages became popular a few years back when interest rates were extremely high and it made a lot of sense to pay as much on the principal of your mortgage as you can in a systematic way. The way it works is that your mortgage payments are split in two every month so you end up paying () / payments instead of whole payments which in effect ends up paying one additional month towards your principal. Doing this ends up saving the average homeowner thousands of dollars on the interest payments over years and shaves off around years of payments. Not bad for back then. But as interest rates started to drop the net effect of savings are not as great now as they were when rates were higher. But with the discovery of a recent mortgage loophole by Craig Romero, a senior mortgage analyst, Mortgage Cycling was born. Mortgage cycling allows a homeowner to build up times faster then biweekly mortgages and allows you to pay of your year mortgage in years or less. Mortgage cycling allows a homeowner to build up equity in their home fast using a patent pending technique. So fast that it ends up paying off a traditional year mortgage in just about years. At first I was skeptical on how powerful mortgage cycling is until I compared using a typical $, loan for thirty years at % interest. After running the figures though the difference between a bi-weekly mortgage versus mortgage cycling is dramatic.

Bi-weekly Mortgage Cycling Equity year $, $,

Equity years $, $,

Equity years $, $,

Equity years $, $,

No matter the loan amount, interest rates or mortgage term, mortgage cycling showed to dramatically cut down the payment time and interest payments to your mortgage company over the life of the loan. Imagine what you could do with all that extra money that you can put back in your pocket instead of your mortgage company. Now mortgage cycling may not be for everyone. But for someone who has the discipline it can be a very effective way of building up the equity in your home and to pay it off extremely fast versus using a standard bi-weekly option.