Early Mortgage Payoff Strategy

A well kept secret by the American banking industry is that there is a better way to finance a house other than the traditional amortized loan.

Amortized loans are front loaded with interest, which means when you start, over 80% of your payment goes to interest. This goes on for 10-12 years, so essentially what you are doing with your house is the same as what you are doing with high interest credit cards, which is paying lots of interest, prolonging and tying you to debt for most of your life.

In addition, most homeowners either refi in 5-6 years, or they move into a new home. This starts the cycle all over again. Banks know this.

A First Lien HELOC (Home Equity Line of Credit) will replace your mortgage with a HELOC, which uses Simple Interest to calculate payments owning monthly. What the means is that YOUR ARE NO LONGER CHARGED INTEREST ON THAT AMOUNT.

This allows you to pay off that full amount over 5-7 years.