Eliminate Your Mortgage And All Debt In Half The Time | Mortgage

Eliminate Your Mortgage And All Debt In Half The Time

Perhaps, the most important rule to financial freedom, is the Rule Of 72. The important thing is that you have compound interest working for you and not against you.

by MikeKoller

Perhaps, the most important rule to financial freedom, is the Rule Of 72. The important thing is that you have compound interest working for you and not against you.

Take the investment you are looking at and the RULE OF 72 will calculate the number of years it will take for your account value to double. It will tell you how long it will take for the money you owe to double, as well.

Here is how it works. Simply take the number 72 and divide it by the percentage rate you are either paying on your debt or earning on your investment. So, if you have a savings account with $10,000 in it and it earns 3% interest, your money will take 24 years to double to $20,000. (72/3=24).

Does this motivate you? It should, if you consider that 1 penny multiplied by 2 every single day for thirty days will become $10,737,417!

The famous Baron de Rothschild, when asked to name the 7 wonders of the world, responded, "I cannot, but I know that the eighth wonder of the world is COMPOUND INTEREST."

The key is that we want to earn a higher % return on our savings, but at the same time pay a lesser % interest on money that we owe and wipe out as much debt as we can. Why make the banks wealthy? The more we keep for ourselves the better off we are. Lets take advantage of the Rule Of 72 instead of having it take advantage of us.

Our mortgage is usually our largest loan. The financial institutions kill us, by using the Rule Of 72 in their favor. As the years go on, the banks watch their interest explode, while we pay only a small amount towards the principles in our mortgages each month. Most of the payments go towards interest.

Is there a way around this? Yes there is! Why not pay down that mortgage in half the time? There are simple ways to accomplish this:

One way is to send more principal with your payment each month, to be applied to your loan balance.

Another option is to use a bi-weekly payment plan. Most mortgages can be set up to utilize one of these. If your bank does not, do an internet search on: "bi-weekly mortgage plan."

Third, there are several software companies that offer a web-based system that helps homeowners monitor, manage and pay off their mortgages and other consumer debt faster and more efficiently than most can do on their own. Do an internet search on this to learn more.

The one I use and have shared with my readers, enables homeowners to cancel out interest on their mortgage with the money they normally deposit in their checking and/or savings account. It uses an advanced line of credit or ALOC, which is an open ended loan that bases the interest calculation on the daily balance, by using a daily periodic interest rate, rather than the month-end balance like most mortgages use. Without making this confusing, this allows the homeowner to use all of their money and income for a given period of time, until it is needed to pay their monthly expenses. This maximizes money power and reduces the banks ability to earn interest on the homeowner's money.

My book: "3 SECRETS OF MILLIONAIRES", has a full chapter on this awesome concept. Search Google to find it or just go to the PayOffYourMortgageInHalfTheTime web site, for a free print out. It will explain how many thousands of dollars in interest you will save and your exact mortgage payoff date. Check this out for yourself! Setting up a mortgage elimination plan can save you tons of money you would normally just give to your bank or mortgage company.

There is alot of info available on that web site regarding this unique way to eliminate your mortgage faster.

Don't let your money earn a fortune for your bank. Make THE RULE OF 72 work in your favor, instead. This way you will get rich on your money.

DISCLAIMER: This article is provided as information only and is not to be taken as financial advice.

Looking to pay off your mortgage fast?, then visit www.3secretsofmillionaires.com to read the whole book on 3 Secrets Of Millionaires and wealth creation.