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The Most Within five years I expect that the long established 30-year closed-end conventional mortgage will be a thing of the past. The introduction of the revolutionary new Mortgage Interest Buster™ has already made it obsolete. As Americans learn that they can save up to hundreds of thousands of dollars in mortgage interest and typically payoff their homes in only 7 to 12 years instead of the traditional 30 years, they will make the obvious choice. And although this fundamental change in how we pay for our homes will not come as welcome news to the country's banking industry, it is good news for America's homeowners. We have all been at the mercy of an archaic mortgage banking system for far too long. This has cost us billions of dollars in unnecessary mortgage interest payments. Today's cover story introduces a new way to pay for your home. Historically Americans have been convinced that when we buy a house we must also sign-up for a 30-year conventional mortgage. We've all seen the amortization schedule that accompanies these mortgages: 30 years of paying very little principal and a whole lot of interest every month until finally (theoretically) some day we will own our home outright. In the end we will have paid more money in interest than the purchase price we agreed to pay for the house in the first place. How many of us when looking at the huge interest charges on our monthly mortgage statements have thought, "There ought to be a better way"? Now, finally, there is! Originally introduced in Australia and then having spread to England and Canada, the Mortgage Interest Buster™ has finally come to America. Our foreign friends, on the same loan amount and cash flow as their American counterparts, typically pay about $150,000 less interest on their homes than we do. On top of that they pay the mortgages off entirely in only 7 to 12 years, not 30 years like us! Their secret is that their mortgages are structured differently than ours. Where an American mortgage is a closed-end instrument that allows our money to flow into it but never back out, their kind of mortgage is really an open-end line of credit that allows money to flow both in and out. That seemingly small difference can save you a bundle. You see, even on a typical closed-end mortgage you are allowed to make extra payments towards principle. But most of us don't. That's because all payments towards your mortgage are permanent. If you send your mortgage company an extra $5,000 this month to reduce your principal, but then decide you need that money back a few months from now, it's too late. You can pay in, but you can't draw out. But suppose you could? Suppose you could draw money out of your mortgage account just as easily as you could pay money in? Any time you did pay extra money into your mortgage account it would have the effect of reducing the principal balance you owed the bank. A lower balance means you pay less interest. Since you would never lose access to your money you could feel comfortable regularly depositing all of your income directly into your mortgage account to force the principal balance down, down, down ... thus saving you a fortune in interest. Then as expenses arise you would simply write checks from your mortgage account. (That's right. You get a check book to write all the checks you want from your mortgage account). Would that be revolutionary? Would that be revolutionary for you?
It's here. We call
it the Mortgage Interest Buster™ and it can save you a fortune.
It will give you the potential to payoff your home many years before you
thought it was ever possible. Call us at 1- Be sure to listen to Bob and David Hanson host their syndicated radio program on WBIS 1190 AM in Annapolis on Mondays at 9am; Tues, Weds and Fri at 10am; Fri at 4 pm and Sun at 2pm; and on WAGE 1200 AM in Leesburg, Virginia weekdays at 3pm. |
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