As the real estate industry contracts, to survive you need to add more value to your client relationships than the next agent.  To do that, you need to deeply understand the challenges your clients face, and be the first agent to present new ideas to your clients that may offer them real value.

One area that clients struggle with is building equity. 

They want to extract equity to make further investments, but struggle to find extra cash monthly for extra principal payments. Or, they want to get their primary home paid off in time to retire free-and-clear. (Baby Boomers, in particular, are starting to wake up to the fact that they have to have a better strategy for taking control of their home financing to pay it off on their retirement schedule, not the lender's.)  Either way, they need help achieving their goals. So, add value to your relationships by introducing clients to new financing tools that help build equity more aggressively, without straining their personal finances.

The most interesting product to date that helps accelerate equity build-up is the Home Ownership Accelerator^®, a loan that combines a fully-functional checking account with a first-position line-of-credit. This innovative combination allows the client to flow all of their monthly cash flow against their own loan balance instead of lending it to the bank. Doing this saves interest charges, which become extra principal reduction.  Compound these savings each month, and the client can significantly accelerate their loan pay-off, often by as much as twenty years! 

A recent article in The New York Times noted the arrival of loans like the Home Ownership Accelerator as a viable financing alternative. 

"For borrowers who cannot face the prospect of paying more interest than principal over the course of a loan, mortgage lenders have begun to offer alternatives more aggressively.  (Lenders) have unveiled mortgage products in the past year that allow borrowers with good credit and above-average incomes to accelerate their payoff schedule and reduce their overall interest liability, all without increasing their monthly mortgage payment.

''These aren't for everyone,'' said Tom LaMalfa, founding partner of Wholesale Access Research and Consulting, a financial industry consulting firm based in Columbia, Md. ''But for those who are reasonably affluent and good savers, it makes a good deal of sense and reduces the overall loan cost.''

Doing the right thing by your clients will pay off for you, too.  A paid-down loan means more available equity for new real estate purchases. A paid-off loan creates a happy client willing to send more referrals.  Keep your clients on the cutting edge of home financing.  Introduce them to products like the Home Ownership Accelerator. 

Please feel free to call/email & let's set up a conference call to talk about other options now available.  Specializing in Virginia, Tennessee, California, Florida, & North Carolina... 

Josh Perrington - 1^st Metropolitan Mortgage | Roanoke, VA

Josh@1st-Metropolitan.com | www.1st-Metropolitan.com | Direct: 540.904.0842