Why I Love My Mortgage

Why I Love My Mortgage…………….Disappearing By Marc Rosenbaum

Is there such a thing as a “necessary evil”? Well if there is, I think it’s safe to say that your mortgage is one. You know, that gargantuan ball and chain bolted to your ankle. You can go on vacation, or even on a world wide tour (if you could afford it), and IT is always there waiting for you when you get home. But those monthly payments are nowhere near as friendly as your dog.

Well, what do you do? Everybody’s got one, right? Yes, that’s true, but it doesn’t make it any easier to deal with, and it doesn’t make it right that you and I will be in bondage to the mortgage monster for the next thirty years or more.

If you peel back the cover on your mortgage, and peek at it’s inner workings, it gets ever uglier. Beneath the pretty exterior of your 4, 5 or 6% “great rate” loan, is a mean, hungry, relentless beast that is going to slowly drain your wealth away throughout the years ahead.

Lot’s of Americans took advantage of the low interest rates in the last few years, maximizing their equity, and generally going hog wild. Some folks just thought it best to re-fi to a lower rate to ease the monthly pain a bit. Either way, the truth about the REAL picture may surprise you.

Are you really paying 6%? I’m sorry to say that you are not. But it’s a fixed rate, right? No, I’m afraid it really is not. Let me explain.

I’m sure that you realize that your monthly payment is actually doing two different things. One: It is paying down your balance owed (Principle), and Two: It is paying Interest, otherwise known as profit for the bank. And you surely have noticed how heavily front loaded the payments are on the interest side. Look at your amortization schedule. It will look something like this: On a $150,000 30 year 6% fixed rate mortgage with $899 payments:

Year Interest Principle Balance

1 $8949.89 $1842.02 $148157.98 2 $8836.28 $1955.63 $146202.35 3 $8715.66 $2076.25 $144126.11 4 $8587.60 $2204.31 $141921.11 5 $8451.65 $2340.26 $139581.54 10 $7635.24 $3156.66 $125528.59 15 $6534.04 $4257.87 $106573.27 20 $5048.68 $5743.23 $81005.38 25 $3045.16 $7746.75 $46518.13 30 $342.70 $10449.21 $0.00

As you can see, it takes almost twenty years before the interest amount and the principle amount are equal. The first ten years are nothing but pure profit for the bank, and nothing less than pure slavery for you and me. Here are some other interesting points:

It takes 19 years before just half of the monthly payment goes to principle

It takes 24 years before 2/3 of the monthly payment goes to principle.

After 7 years, the consumer has paid $75,600 but Principle has only been reduced by $15,541.

After 10 years, more than 84% of the starting balance is still owed to the lender.

After 15 years, you have paid more than the original starting balance, yet over 70% of the starting balance is still owed.

At the 21 year mark, you will have paid $226,800 for your $150,000 loan. Ten long years remain because half of the starting balance is still owed.

Obviously, the odds and the money stack up in the bank’s favor. They also understand that the average American will sell that house in 5-7 years, and then start the process again on their next property. And more than likely, the house they just sold did not gain more value than the interest paid. So, the average American does NOT make a real profit on the sale of their home.

If you run the numbers on holding your note for 5 years and selling your home, you will see that you actually end up paying over 100% interest. The longer you hold the note, the better it gets, but not by much. Hold it 7 years and you pay 68%. Hold it 10 years and pay 43.48%. Go the distance and carry that loan for 25 years, and you pay 9.43%. It’s only 6% if you continue the entire 30 years without refinancing!

Now, why would the banks do that to us? Duh. Have you noticed your bank’s lovely new building lately? How about the banker’s new boat and fine automobiles? That’s why. They are in it for the………….money.

So, now that you are a little more educated, and perhaps a bit angry, what can you do about it? Shop for a lower rate? Make bi-monthly payments? Pay an extra $50 or $100 every month?

The lower rate will do almost exactly nothing for you, especially when you consider closing costs, etc. You will still end up paying the same unbalanced interest/principle as you were before, only for a new, fresh 30 year term. No.

The bi-monthly option or the extra payment option are better, and can end up trimming a healthy 5 years or so off of the end of the loan. But you have still payed almost ALL of the interest!

The only answer to getting out from under the burden of the mortgage beast is to pay down your principle. But that is a whole different problem isn’t it? The fact of the matter is that most of us just don’t ever seem to have enough extra money laying around to whack a big chunk of principle off of our mortgages. So, I guess that’s that. Keep on slaving away for 26 more years, or else go live under a bridge somewhere.

Unless of course there was another way. Aha! All is not as bleak as it seems. What if there was a way to pay your mortgage off in 1/3 of the time? What if you could pay off large hunks of principle 2,3,4, or more times per year? What if you could do this without changing your monthly payments OR adjusting your lifestyle?

I am extremely pleased to tell you that this is happening, it is working beautifully, it is very real, and it is available to YOU. United First Financial of Salt Lake, Utah has spent millions of dollars and years of development to bring us an incredible piece of software that makes it all possible. Their Money Merge Account, or MMA, ties together your existing 1st mortgage, your HELOC or home equity line of credit, and the powerful software, to safely, legally, and quickly pay down your mortgage!

I was so impressed by this concept, that I became an authorized agent for U1st Financial. Now I can help you get rid of your mortgage so that you can start building wealth instead of just making your banker rich.

There is no refinancing involved. There is virtually zero risk. This is quite simply the most life changing thing I have ever seen. My personal mortgage, with a $137,000 balance and 26 years remaining, has been trimmed down by 18 years. I will own my home, free and clear in 8.4 years at the most. I will save over $116,000 in interest!

I just follow the software, and it works. U1st Guarantees it to work. Friends, this is not only exciting, but it is a lot of fun.

I would love to do a free analysis of your mortgage and debt situation. I can show you in a matter of minutes how our MMA will change your life.

First, you should visit my website at: www.u1stfinancial.net/roses and take the MMA Video Tour. This film will completely explain how this program works and what you could expect. But come expecting a financial miracle. Come and discover financial freedom. I would love to have you on board.

If you find this idea interesting, please forward this article to anyone you know who might want to rapidly accelerate their mortgage payoff.

Also, if you know of anyone who is serious about starting their own business, give them this article, my website, or my phone number. I believe that this is the most powerful business opportunity of the century, and I need some motivated folks to help me.

Marc Rosenbaum 970 562 4777 www.debteraser07.com

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