HOME OWNERSHIP ACCELERATOR... ON ITS WAY BACK

By
Mortgage and Lending with Affordable Mortgage of Va.

Almost  three years ago I tripped over a loan product that I absolutely believe is the best mortgage product on the market..... for the right individual.  It has been dubbed the  Home Ownership Accelerator and it originated in Australia  and quickly spread to Europe where there is no subsidy for mortgage interest.  Consequently the mortgage pays off   very quickly. In many cases in half the time  or less based on a 30 year  mortgage term.

I  closed three loans  prior to October of 2008 and shortly after that the product was pulled from the market because investors (large  pension funds, mutual funds etc.) would not buy or invest in  this product.  When that happened the liquidity for the  product dies. Of the three loans that I closed, all three borrowers are enjoying an interest rate of roughly 1.25% or less for the last 18 months.  Partially due to the low interest rate at least one of  the borrowers has paid down almost $50,000 in principal in the last 18 months based on borrowing  just a shade over $200,000.

Sound to good to be true. It isn't!  One of the other 2 borrowers has paid down approximately $37,000 in the same time period. The great news is that this product is now available in some states and is spreading quickly toward the east coast. According the the primary investor it will be in Virginia, where  I work and live, by late summer or early fall.

The possibilities on this loan are endless for the disciplined borrower! How much could you or would you enjoy your money  if you were without a mortgage payment? How does it work and is it the right loan  for you? Stay  tuned and I will provide the data that will answer those questions in future blogs.

Comments (3)

Edward & Celia Maddox
The Celtic Connection Realty - Queen Creek, AZ
EXPERIENCE & INTEGRITY - WE TAKE THE HIGH ROAD

Sounds like a good possibility for buyers. Look forward to hearing more details.

Jun 11, 2010 04:38 AM
Billi Evans
Murney Associates - Springfield, MO

Thanks for the heads up. I've never heard of this product but will now look for it.

Jun 11, 2010 04:39 AM
German Panzica
Centerline Homes - Vero Beach, FL

It's about time a new mortgage financing option became available.  How can anyone get ahead when they pay all that interest up front and never lower their principal on a regular loan amortization?

Jun 11, 2010 04:43 AM