Pay Off Your Mortgage In Half The Time
The RULE OF 72 is the most simple, yet most important rule of financial success
. Compound interest is extremely powerful, but you'd better make sure that you are having it work FOR you and not AGAINST you.
Want to see how long it will take to double the money in your savings account? The RULE OF 72 will tell you. But, on the otherhand, it will also work against you and in favor of the banks when considering debts.
Here is how it works. Simply take the number 72 and divide it by the percentage rate you are either paying on your debt or earning on your investment. So, if you have a savings account with $10,000 in it and it earns 3% interest, your money will take 24 years to double to $20,000. (72/3=24).
This may not sound very exciting, but consider this: One penny doubled everyday for 30 days (I month) will turn into a whopping $10,737,417.00 at the end of that month!
I love this quote from Baron de Rothschild, when asked if he could name the 7 wonders of the world: "I cannot, but I know that the eighth wonder of the world is compound interest."
The key is that we want to earn a higher % return on our savings, but at the same time pay a lesser % interest on money that we owe and wipe out as much debt as we can. Why make the banks wealthy? The more we keep for ourselves the better off we are. Lets take advantage of the Rule Of 72 instead of having it take advantage of us.
Our mortgage is usually our largest loan. The financial institutions kill us, by using the Rule Of 72 in their favor. As the years go on, the banks watch their interest explode, while we pay only a small amount towards the principles in our mortgages each month. Most of the payments go towards interest.
Is there a way around this? Yes there is! Why not pay down that mortgage in half the time? There are simple ways to accomplish this:
One way is to send more principal with your payment each month, to be applied to your loan balance.
Or, we can use what is called a Bi-Weekly Payment Program. Many banks offer such a program. Simply get in touch to see if they offer such a plan or do an internet search for the term: "Bi-Weekly Mortgage Program."
Finally, there are various software programs that are web-based, that homeowners can use to pay off their mortgages and all other debts, more quickly. Again, use the internet search to learn more.
The one I use and have shared with my readers, enables homeowners to cancel out interest on their mortgage with the money they normally deposit in their checking and/or savings account. It uses an advanced line of credit or ALOC, which is an open ended loan that bases the interest calculation on the daily balance, by using a daily periodic interest rate, rather than the month-end balance like most mortgages use. Without making this confusing, this allows the homeowner to use all of their money and income for a given period of time, until it is needed to pay their monthly expenses. This maximizes money power and reduces the banks ability to earn interest on the homeowner's money.
I have a whole chapter about this in my free report "3 Secrets Of Millionaires.", if you'd like to learn more. You can get a free, no obligation analysis by visiting the PayOffYourMortgageInHalfTheTime web site. A report will tell you exactly when you can expect to have your mortgage paid off and how many thousands of dollars you will save by doing it. Do some homework on this. If you set a mortgage pay off plan in place, you can pay off your mortgage in half the time and save thousands or even hundreds of thousands of dollars of your money to use for yourself, instead of giving it to your bank or mortgage company.
There is also a video on that web site, with an overview of this unique tool to pay off your mortgage faster.
Get the RULE OF 72 working for you, to create your fortune, instead of having it work against you to make the banks rich.
by: Mike Koller
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