Free-Reprint Article Written by: Jeff Spellman See Terms of Reprint Below.
***************************************************************** * * This email is being delivered directly to members of the group: * * [email protected] * ***************************************************************** We have moved our TERMS OF REPRINT to the end of the article. Be certain to read our TERMS OF REPRINT and honor our TERMS OF REPRINT when you use this article. Thank you. This article has been distributed by: http://Article-Distribution.com Helpful Link: The Digital Millennium Copyright Act - Overview http://www.gseis.ucla.edu/iclp/dmca1.htm --------------------------------------------------------------------- Article Title: ============== How To Beat Your Banker At Their Own Game Using Loopholes In Their Own Rules Article Description: ==================== Imagine what it would be like if you could pay off your mortgage sooner than anticipated. Sure, we all think about it, we tell ourselves that next year we will start paying more than is required each month, or that once we pay off the car loan, we can put more money to that mortgage. Unfortunately, many homeowners never seem to have that extra money to put towards their mortgage payments. Additional Article Information: =============================== 854 Words; formatted to 65 Characters per Line Distribution Date and Time: 2006-12-26 12:00:00 Written By: Jeff Spellman Copyright: 2006 Contact Email: mailto:[EMAIL PROTECTED] Jeff Spellman's Picture URL: http://www.jsrealestatesolutions.com/images/Jeff-blue_bkgd.jpg For more free-reprint articles by Jeff Spellman, please visit: http://www.jsrealestatesolutions.com/foreclosure_articles.html AND http://thePhantomWriters.com/free_content/d/index.shtml#Jeff_Spellman ============================================= Special Notice For Publishers and Webmasters: ============================================= If you use this article on your website or in your ezine, We Want To Know About It. Use the following URL to let us know where you have used this article, and we will include a link to your website on thePhantomWriters.com: http://thephantomwriters.com/notify.php?id=4111&p=load HTML Copy-and-Paste and TEXT Copy-and-Paste Versions Of Article Are Available at: http://thePhantomWriters.com/free_content/db/s/beat-your-banker.shtml#get_code --------------------------------------------------------------------- How To Beat Your Banker At Their Own Game Using Loopholes In Their Own Rules Copyright (c) 2006 Jeff Spellman JS Real Estate Solutions http://www.jsrealestatesolutions.com/ Many homeowners often feel that they will never actually get their mortgage paid off in full. Part of the reason for this is that the traditional mortgages are set up for a 30-year time period. Picturing life a full 30 years from now, or even 10 years from now may seem a bit overwhelming for many people. Imagine what it would be like if you could pay off your mortgage sooner than anticipated. Sure, we all think about it, we tell ourselves that next year we will start paying more than is required each month, or that once we pay off the car loan, we can put more money to that mortgage. Unfortunately, many homeowners never seem to have that extra money to put towards their mortgage payments. These same people are able to afford their mortgage payments each month, but just never seem to have anything left over at the end of the month to put towards an overpayment on the home loan. If you are looking for a way to pay off your mortgage quicker than the original terms of the loan, then there are certain things that you need to understand. First of all, the lender wants you to take the full 30 years to pay off the house because the lender is earning interest from you during that time period. If you pay off the loan sooner than expected, the profit to the lender will be reduced. Because of this, most lenders are in no hurry to educate you about the methods that you can use to achieve an early pay off. Next, it is important that you understand that the lenders use what is called amortization to set up your repayment plan. In this amortization the lender allocates where the money that you pay each month goes. By this I mean that the lender allocates a percentage of your monthly payments towards interest, and the bulk of the remainder goes towards your principal. In the beginning of the repayment period (first few years of the loan), the bulk of the money that you pay the lender each month will go towards the interest. The lender wants to make sure that they get their profit from you as quickly as possible, in case you default on your mortgage. If you were to pay the lender back, at the exact rate they set up in the amortization schedule, 99.5% of the final payment that you make to the lender would go towards the principal. Conversely, roughly 85% of the very first payment that you make on your house will be allocated to interest. With amortization schedules, a homeowner can realize huge savings on the amount of interest that they pay the lender if they make a few changes in their payment methods. One of the changes that you can make is to make bi-weekly payments on your mortgage instead of monthly payments. No, you do not have to pay twice the amount of money; you simply pay half of the payment after two weeks, and the second half of the payment two weeks later. An example of this would be if your monthly mortgage payment is $1,500, you could pay $750 bi-weekly and save a huge amount of money on the interest of the mortgage. In context, a homeowner can literally save between $30,000 and $100,000 in mortgage interest by making bi-weekly payments instead of monthly payments. Every person's experience will vary, but the average homeowner could save $60,000 in mortgage interest, all without a need to refinance his or her home loan. The bi-weekly payment system is perfectly legal, and it could pay you handsomely for your extra efforts. These kinds of savings are possible, because of the way the lenders use the amortization schedule and the way that they allocate the money that is paid to them. Another reason bi-weekly payments help save you a considerable amount of money on your mortgage interest is because you would actually be making 26 payments each year, or in other words you would be making 13 months worth of payments annually. Right there you have found some of that "extra" money that you never seemed to be able to come up with that you wanted to put towards your mortgage. In reality, you will be making one extra monthly payment, but since you will quickly become accustomed to paying a smaller payment every two weeks, it won't be as big of a shock to your wallet as if you tried to come up with an entire extra monthly payment all at once. By considering some of these very simple changes in the way that you repay your mortgage, you could own your home quicker, establish equity faster, and reduce the interest that you pay to the lender by thousands of dollars. It is recommended that you consult a financial advisor, or other expert to learn which repayment methods would be best for you and current situation. They will be able to show you, via an amortization schedule, exactly how the money would be allocated and how you can start saving money today. --------------------------------------------------------------------- Jeff Spellman is a financial-services specialist. Jeff established JS Real Estate Solutions (http://www.jsrealestatesolutions.com) to help real estate investors and homeowners enhance their investments, protect their assets and maximize their returns. If you would like to save interest on your mortgage, build equity in your home more quickly, and even pay off your mortgage years ahead of schedule, Jeff can help. Please visit http://www.jsrealestatesolutions.com/mortgagereduction.html to learn more. Jeff can be reached at: 516-808-4105 or [EMAIL PROTECTED] --- END ARTICLE --- Get HTML or TEXT Copy-and-Paste Versions Of This Article at: http://thePhantomWriters.com/free_content/db/s/beat-your-banker.shtml#get_code ..................................... TERMS OF REPRINT - Publication Rules (Last Updated: May 11, 2006) Our TERMS OF REPRINT are fully enforcable under the terms of: The Digital Millennium Copyright Act http://thomas.loc.gov/cgi-bin/query/z?c105:H.R.2281.ENR: ..................................... *** Digital Reprint Rights *** * If you publish this article in a website/forum/blog, You Must Set All URL's or Mailto Addresses in the body of the article AND in the Author's Resource Box as Hyperlinks (clickable links). * Links must remain in the form that we published them. Clean links should point to the Author's links without redirects having been inserted into the copy. * You are not allowed to Change or Delete any Words or Links in the Article or Resource Box. Paragraph breaks must be retained with articles. You can change where the paragraph breaks fall, but you cannot eliminate all paragraph breaks as some have chosen to do. * Email Distribution of this article Must be done through Opt-in Email Only. No Unsolicited Commercial Email. * You Are Allowed to format the layout of the article for proper display of the article in your website or in your ezine, so long as you can maintain the author's interests within the article. * You may not use sentences from this article as an input for any software that steals sentences from others in order to build an article with software. The copyright on this article applies to the "WHOLE" article. *** Author Notification *** We ask that you notify the author of publication of his or her work. Jeff Spellman can be reached at: [EMAIL PROTECTED] *** Print Publication Reprint Rights *** If you desire to publish this article in a PRINT publication, you must contact the author directly for Print Permission at: mailto:[EMAIL PROTECTED] ..................................... If you need help converting this text article for proper hyperlinked placement in your webpage, please use this free tool: http://thephantomwriters.com/link-builder.pl ===================================================================== ABOUT THIS ARTICLE SUBMISSION http://thePhantomWriters.com is a paid article distribution service. thePhantomWriters.com and Article-Distribution.com are owned and operated by Bill Platt of Stillwater, Oklahoma USA. The content of this article is solely the property and opinion of its author, Jeff Spellman http://www.jsrealestatesolutions.com/ --------------------------------------------------------------------- XXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXX ---------------------------------------------------------------------
