Your Home Equity Loan
Should Have A MAP

Whether you're considering a home equity loan or any other mortgage refinance in Florida, or anywhere else for that matter, here is a well-hidden secret you ought to know about.

You are about to read what your bank, mortgage lender and your local credit union hope you'll never find out. By the time you get to the bottom of this page, you'll quickly understand why.

It doesn't matter how far away you may be from retirement, what I am about to share with you could save you from bankruptcy, foreclosure and many other financial disasters that can result from circumstances outside of your control.

Since none of us are immune to life's little surprises, I encourage you to pay close attention to what you're about to read no matter how well-off you may be today.

It is absolutely critical that your home equity loan be structured with a Mortgage Acceleration Plan (MAP) in place, especially as part of your retirement planning. There are two reasons for this.

Firstly, you do not have to (nor should you have to) go into retirement with the financial burden of a mortgage on your shoulders (unless of course you're using the equity for other profitable investments).

Secondly, as part of your wealth management strategy, the financial liquidity and safety of your family should come before any bank's interests (I told you your bank wouldn't want you to read this). This is why a home equity separation strategy must be implemented sooner than later.

Did you know that millions of homeowners like you, are giving away tens of thousands (and sometimes hundreds of thousands) of interest dollars to their banks unecessarily? This is money that you could have otherwise put towards a more comfortable retirement at an earlier age.

Let me illustrate. Suppose you have a 30-year mortgage for $150,000 at 7% interest. The monthly payment on that obligation is $997. After 10 years of regular payments, do you realize you would have paid about $119,640 and the biggest portion of that amount is interest paid to the bank?

Guess how much you still owe your favorite mortgage lender on that loan? A whopping $128,719.

If you're like most in this country, chances are you will refinance this loan and reset the clock again on a new mortgage or a home equity loan. This means even more interest (not to mention anything about closing costs) for the new loan.

It is no wonder that many people are carrying a huge mortgage well into their retirement and have to rely on a reverse mortgage at some point to survive.

Very few people know about, let alone implement a Mortgage Acceleration Plan for their home equity loans or their mortgage refinance.

With such a plan in place, you would separate your equity (not to spend it but to conserve it) in a strategic loan program where your money can work to your advantage as opposed to benefiting only your bank or your mortgage company.

A Mortgage Acceleration Plan allows you to

Here's how one such program works to put more money in your retirement pocket and increase your liquidity immediately.

This home equity loan program allows you to have your mortgage account and your bank account combined as one. Any and all funds that you do not need right away can be deposited into your mortgage.

If you're a wage earner, you deposit your paycheck into your mortgage every time you get paid. If you're a business owner, any cash that is not immediately needed for expenses is also deposited in that account (check with your accountant first).

This money is immediately applied to your home equity loan to reduce your principal daily balance immediately. And, since interest owed on your loan is calculated by your daily balance, you end up owing dramatically less interest as a result of a low daily balance.

That's how you save tens of thousands in interest, payoff your loan in less than half the time and redirect money into your retirement that you would otherwise have owed to a bank.

And, you do this without any changes to your spending habits (although you do have to be financially disciplined), without having to enroll in mortgage bi-weekly payment programs or send in extra payments from time to time.

However, once you're in this strategic home equity loan program, unlike traditional loans, you have access to your funds whenever you need them.

When it is time to pay your bills (monthly expenses), you simply write a check out of that account or use a free online bill-pay that comes with the account or withdraw cash with a free ATM/Debit card.

You don't ever need to refinance in order to access your equity (this saves you closing costs and from resetting the interest clock). You no longer have to meet any bank's eligibility guidelines (such as credit score, income, employment history etc...) to qualify for a loan in order to access your own equity.

Think for a minute what this means if you're a Florida resident and you've been warned of an approaching hurricane. You can immediately write a check to move your equity in a separate account in case you need funds to cover damages as opposed to waiting forever for the insurance money to come in to cover the repairs.

Further, because this is a strategic home equity line of credit, as long as you stay below your credit limit, you don't have the obligation to make a payment every month. If your income fluctuates (as in the case of self-employed individuals), your equity constitutes your cushion in your account until you have the ability to make the next interest payment.

In addition to having such flexibility, you have the added benefit of having your money work for you to reduce the mortgage interest you owe on your loan, and thus reduce the time it takes to pay off your home equity loan by half or more.

There's some caveats though (you knew this was coming, didn't you?). First of all, the program is not available in every state. Secondly, you do need to be financially disciplined and with positive cashflow in order for this loan to work for you.

So, if you're the type of person who always has more month left than money, then this type of strategic home equity loan may not be in your best interest.

I hate to end such a great program on a sad note. However, I have to get this off my chest. You now have in your knowledge bank what may be the most vital piece of information that will put you and your family on a path of financial security.

But you know what? Statistics show 7 out of 10 people who read this information will never do anything with it...until it's too late... until they get into a financial tailspin, and are facing foreclosure. Often times, all of their equity is locked in the home and they can't get to it.

If they're lucky, they may get a few bucks months after foreclosure occurs. I hope you're not one of these people. Take action today.

Find out if you qualify for a MAP with your home equity loan. Contact me today!