I am a newbie on Active Rain and have never participated in the blogging effort but I have posted 3 blogs since the beginning of my participation in this web site. All of my blogs have been centered around a relatively new mortgage product called The Home Ownership Accelerator.
I have been looking at this product for about a year and have studied all aspects of this loan. There are numeros benefits to this particular mortgage product. Should you refinance into this product your payment will most deifinitely drop unless of course you have an interest rate less than 3.5%. If you have a positive cash flow on a monthly basis, THERE IS NO FASTER WAY TO PAY OFF A MORTGAGE LOAN on your primary residence or 2nd home. Think about it! Let's say that you take out a mortgage of $300,000 and your payment is based on 6.5% for a 30 year fixed rate loan. You would have a payment of $1896.20 and about $271.00 would be going to principle. It will to take you 30 years to pay off that loan. It would normally take aobut $6000 per month to qualify for the loan outlined above. Applying that amount of money to the HOA here is what will happen.
Take the same $300,000 on The Home Ownership Accelerator and with a positive cash flow of just $400.00 per month you would be able to pay this loan off in 12 years, save $260,175 in interest and have an equivalent rate on a first mortgage of 2.1%. In addition you will have access to most of the credit line for the next 18 years which would allow you to invest in other real estate without having to get a new mortgage loan for that pruchase.
If you have the opportunity to reduce your gas bill or pay off your mortgage....... the mortgage is easier.