Traditionally Americans, pay all their bills with your checking account. Along with that some of us can move money to your savings account to save money for a rainy day. Now with the rise in the price of oil, the cost of living for us has dramatically gone up. But we still make the same money.
See when you first purchase a home no matter what the cost of the house; you will pay about one and half times the purchase price in interest. For example if you purchase a house for, $200,000.00. Except to pay about $300,000.00 in compounded interest to the front end of your loan.
Now that is about how much money the lender will make if you keep the house for thirty years or three hundred and sixty months. That is a lot of money if you ask me. That is how American's traditionally have been working for their homes.
Let us look back on how we pay our bills. We have a checking account; this checking account is how we pay our bills. We deposit our net income/paycheck in this account so we can write checks from it to pay our bills. There is no reason to keep and save money in this account because it is not an interest baring account. Some people deposit money in a savings account first, then transfer money into the checking just to be able to make a little bit of money the we are saving at the end of each month.
The banks love this because they make the most money from homeowners this way.
Ten years ago in Australia, a concept was released to help out the average homeowner take control of their finances. Essentially it showed the average homeowner how to leverage their money by using your mortgage in your favor. With this concept you're able to cancel out the maximum amount of compounded interest day to day, by combining your checking, savings, and your mortgage into one account.
This is called the (MCA) Mortgage Checking Account. This is a secret that the banks have been keeping it a secret from us. The MCA is using the banks method of making money and using it against them. This isn't something that many lending institutions want us American's to know. To think that now banks make less money on a home loans, you can see why this is such a big secret. With this method you are able to pay off you home loan in as little as eight to eleven years, savings you on average of $150,000.00 on your home.
This method has worked so well the many other countries have adopted this concept. In the United Kingdom, Canada, and New Zealand 25% of the loans that are written in these countries use this concept of mortgage banking, the concept of your home working for you to achieve the American dream of owning your home.
To learn more about this visit us at http://www.paidhouseloan.com/
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Thanks for the article. I do know I like the fifteen year mortgage over the thirty.