In Tampa, Florida home owners and future home buyers have been hearing quite a bit of talk from newspapers, television and the Internet on the "Mortgage Accelerator" programs. Have you heard of them? They can go by the name "mortgage accelerator" or "all-in-one" mortgage. The product is simply a liability manger and offers users a financial tool for homeowners to pay off their mortgage and leverage their own income. I wanted to take a moment to give you more information on this product. There are an increasing number of mortgage companies offering this product and it is important to me that you have a good knowledge of how it works from your Tampa mortgage source!

You may be thinking...pay off my mortgage? For years the standard answer has been "NO"! We have been obsessed with the mentality of ‘leverage', and trained to use record low mortgage rates to our advantage as cheap money to be invested elsewhere. We have gone from consumers who only buy what we can afford, to financing everything in hope for a bigger payoff. But the fact is that the only real result of this has been that we are no longer a nation of savers. Today, baby boomer's are approaching retirement with less than we need banked. So, how will we fund our retirement? 85% of homeowners are counting on home equity to support their retirement plans! Not a bad plan, except that price appreciation is easing and interest rates are rising. So, retirement is looming, most notably for Baby Boomer's, and the price appreciation we are counting on may be taking a break just when we need it the most.

So, we need a fresh solution. If we can't count on appreciation to build equity, we need to pay down our mortgage debt more aggressively to build equity. The best solution is to ‘retire' your home loan debt before you retire so that you don't have to use some of your hard-earned retirement money to make mortgage payments or worse, sell the house and downsize.

Retiring without a mortgage allows for a lot more options:

• You can stay in your own home for a while
• You can downsize and have a sizable chunk of equity to invest
• You can travel more to see family and the world

There are quite a few programs that I have heard about and researched, but only one tool that actually helps your accomplish this retirement objective. The product is called the ‘Home Ownership Accelerator'.

It allows you to do something for yourself, putting your own money to work more aggressively:

• Saves thousands in interest
• Pays off your mortgage in about half the time
• Does not force you to change your spending habits to accomplish your goal

Mortgage lenders have always done a very good job at getting us into a home through affordable payments, deferred interest, etc. For the first time, the lending business is focusing on helping to make the end of the process (paying off the debt) easier.

So how does it work?

With the Home Ownership Accelerator, home owners direct-deposit their entire paycheck into their home loan account, instead of their checking account. This immediately reduces the principal balance. Since interest is based on the daily balance, they start saving interest immediately compared to traditional loans. This first step in the process leverages your own cash flow, your are essentially ‘earning' loan rate rather than checking account/savings rate. You are lending money to yourself, instead of the bank. With the program, an average borrower with good cash flow could pay off their home loan in as little as half the time - with no changes to spending habits. In fact, many homeowners will pay off even faster depending on their cash flow.

We need to take control of our future financial planning NOW to make sure we live a comfortable retirement. More and more tools are available to help us get there. This new product, the Home Ownership Accelerator, is an exciting addition to that tool box.  It is a niche product that should be discussed with everyone who is involved in your finances, from your mortgage consultant and your financial planner to your CPA.  With the right advise, you can confirm this is a product that will be a benefit for your fiancial future!

Take a test drive of this mortgage program to see for free how it would work for you.  Contact your Tampa Mortgage Professional, Leah Ross, for a complimentary consultation.

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My original article on this subject is located on my Mortgage Blog (follow the link to read more!). 

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South Tampa | Mortgage Accelerator