How to Make Money on Your Mortgage (Like the Bank)
Your home represents a relatively safe and secure investment for
lenders. If you could make money the same way, it would provide you
with the same income, safety and security. But can you earn money
on your own mortgage? YES YOU CAN.
Remember the mortgage note? That is the “paper” investment that
earns income for the bank via your monthly payments. Assume for a
moment your mortgage note is $300,000 at 6%, and provides for a
series of monthly payments of $1,798.65 totaling $647,514. Of that
amount, $347,514 is interest. So that note will earn $347,514 for
the bank. And you will pay it.
But, what if you owned part of that note? A portion of that note
would be paid to YOU! Not only will it represent investment income
for you, but it will be tax-free, not reportable on your tax
return, and a safe conservative investment. In other words, you and
the bank will be co-investors on your mortgage note.
Is this possible? Can you participate as an investor in your own
mortgage note? YES. ABSOLUTELY!
This is what the Mortgage Magic System does for you. It gives you
income participation in the bank’s investment in your own mortgage
- essentially, making money from the mortgage on your home!
Using this System, a portion of your monthy payment will be income
to you each month in the form of asset increase, and the bank will
earn correspondingly less interest. You will be making money on
your own mortgage note. The Mortgage Magic Systemt also reduces
your risk of long-term debt, protecting you from unanticipated (but
all-too-common) future financial shocks .
Here’s how it works: you are going to use your regular income as a
hedge against your own mortgage loan by having your income reduce
your mortgage balance. For every dollar of income, you will owe a
dollar less on your mortgage.
Now, here’s the secret the banks don’t want you to know – it’s that
interest on your mortgage is calculated on the average daily
balance of your loan. By using your regular income to offset your
mortgage balance, you owe less on your loan. As a result, you owe
less interest for the period!
“But wait”, you’re thinking. “I need my income to pay bills and pay
for my daily needs”. “NO PROBLEM”, I’m telling you, “BECAUSE YOU’LL
HAVE ACCESS TO YOUR MONEY ANY TIME YOU NEED IT AND FOR WHATEVER
REASON”.
You’ve got to be thrilled to know about a system that can turn the tables on
the bank, but you’re probably confused. Well, after reading this article, check out the site.
The effect of reducing interest in this manner gives you the same
rate of return as the bank makes on your mortgage. If you have a 6%
mortgage, you earn 6%. And it’s tax-free.
But it’s even better, because instead of paying the bank 6%, you’re
“earning” 6% on the same asset - the difference between what you
were paying and what you are now making is 12%!
To give you some idea of the power of this system, money earning
12% interest doubles in 6 years. That is why this system reduces
your mortgage so quickly!
“Ok”, you say, “where’s the interest on my money? How do I receive
it?” Ahhh, (and here it gets even better), it’s gone to increase
your equity in your home! You now own more of your home, and the
bank owns less! And, this equity increase IS NOT TAXABLE. That’s
right, you created a tax advantaged benefit earning you 6% that’s
GUARANTEED and TAX-FREE.
What other SAFE investment can you find that will pay you 6%, is
tax free, is completely SAFE, and reduces risk of long-term debt.
That’s right, there is NO RISK in using this system!! The only risk
is in NOT using it, because you will be carrying your costly
mortgage for 30 years – and that exposes you to huge RISK.
Wealth With Little Risk – The Big Boys Do It – So Can You
Your greatest assets are your income and your remaining years, and both are being reduced as time goes by, in a financial sense. Sad, but true. The reasoning is that as time moves forward, their ability to benefit you financially decreases.
For most people, their age and finite limit of their productive years have a diminishing impact on the ability of these assets to continue to grow their net worth. It’s no secret that income peaks somewhere in mid-life. As for age, well, simply put, you have less time for your money to work for you. You already know this.
Most people turn to investments to build their net worth. Stocks, etc. Wall Street has an army of people to “help” you invest your money. I’m not knocking this, but let me give you something to think about: Your home is a liability and exposes you to risk (represented by your mortgage). Your Wall Street investments – more risk.
Maybe you’re thinking ”I invest in good companies whose value will go up”. Maybe, stocks also go down – sometimes a lot. And when they do, they drop fast. More bad news – you also lose the time value of that money to grow your net worth. Where was I – oh yes – risk. You took on investment risk in order to, what? – grow your net worth!
Let’s look at the big picture: you have a mortgage costing you 5.5% (just for example), and investments that historically grow at 8%. You are betting that the values of your home and your investments will increase. On the other side of your payments are: the bank holding the mortgage note, and the Wall Street firms who make their living (in part) on you buying the investments they sell you.
Now, what you need to realize is that they always have the safer side of the bet. Here’s the point of all this – the smart money shuns risk. They are running businesses, and in business, you need a sure thing to survive over time. You can do the same thing. There’s nothing wrong with assuming some risk in exchange for reward, but I’m suggesting you should place a limit on your risk exposure and build your net worth in a safer, more predictable way that assures your objective – to grow the value of your assets over time without undue exposure to risk that can diminish their value.
Money will grow over time if you let it. The key is “TIME”. You can build wealth if you make the most of TIME. Double a penny each day (you know this one, right?). On day 2, it’s worth only 2 cents, but you know that by the end of the month, you can retire! Over time, money becomes wealth! Even if you start with a PENNY. This is perhaps an unrealistic example (you can’t grow value at this rate), but the principle is the same. You CAN achieve more financially if you don’t maintain high risk exposure for long periods of time. If you do, then you’ll invariably run losses that will erase long periods of gain. Don’t buy into the big risk gambit, but instead, be smart, reduce your long term risk (by targeting mortgage reduction as your investment goal)! At the end of the day (or the 30 year period), you’ll be RICH! What action should you take? Use a mortgage accelerator.
Get it at the Mortgage Magic System.
It will quickly reduce your mortgage and also provides an effective roll-down plan, so you’ll also get your credit cards paid off quickly. Follow this simple plan and you’ll be sitting pretty while others are mired in debt.
Turn Your Mortgage into an Investment
Your home represents a relatively safe and secure investment, but not for you - for your lender. If you could make money the same way, it would provide you with the same income, safety and security. But can you earn money on your own mortgage? YES YOU CAN.
Every month, most of your mortgage payment goes toward interest, and only a very small amount goes toward reducing the principal. If you could do something that would cause less of that monthly payment to go toward interest, more of it would go toward principal! Is this possible? YES!
How? Use a mortgage accelerator! It’s a method that does just that – make more of your monthly payment go toward principal. If you think this means making bi-weekly (ugh!) payments, you’re wrong. Real mortgage accelerators don’t change your regular monthly payment – but more of it goes toward principal, and less to interest. Basically, you’re earning money on your own mortgage! Cool!
Mortgage accelerators are misunderstood but don’t be put off. Not only do they work, but also, using one can cut the time it takes to pay off a 30 year loan to just 10 years, and save you hundreds of thousands of dollars. Banks naturally don’t want you to know this.
The best mortgage accelerators use the “Australian method“, so-named because it was first used in Australia in the mid 1990′s. Since then, many people in countries around the world have used it with great success. Still, in the USA, it is not well-known. But don’t be put off – it really works and can save the average homeowner a fortune in mortgage interest.
There are several companies selling such system, and some of them charge thousands of dollars. Still, they are all based on the Australian model and so all will work, so you don’t have to spend all that much.
One of the best values is the Mortgage Magic System.
The Mortgage Magic System lets you use the bank’s asset to your own advantage – essentially, making money from the mortgage on your home !
