Mortgage Loan Quest
|
|
97% Of American Homeowners Overpay Their Lender In Mortgage
   
|
The New Bankruptcy Law -- How Will It Affect Debt Negotiation
In April 2005, Congress made sweeping changes in U.S. bankruptcy law that will go into effect on .....
97% Of American Homeowners Overpay Their Lender In Mortgage Interest Every Month.In April 2005, Congress made sweeping changes in U.S. bankruptcy law that will go into effect on .....
If you own a home, have just re-financed or are shopping for a mortgage, you'll be outraged.
Housing: Americans across the country were shocked to hear of a new poll that states 97% of homeowners here in America are overpaying millions of dollars each month in mortgage interest.
The National poll was conducted last month to determine how many homeowners take advantage of the prepayment loophole in our mortgage system, which eliminates costly interest overpayments.
The shocking results showed only 3% of America's homeowner population utilize this loophole and take advantage of the valuable benefits created by it.
When Sean Drover, a Chicago businessman and homeowner found out he was overpaying $217 in mortgage interest every month, he was appalled.
'Honestly, I was sick to my stomach when I thought back on all the monthly payments I'd made. If I would have known about the pre-payment loophole when I first bought my home I could have put all that money into equity instead of my lenders pocket.'
Income Tax Deductions And Faster Mortgage Payments
Humans are predictable in behaviour because, behaviour patterns repeat themselves. Some will .....
The problem lies with what the banking industry calls 'front loading'. This is when the majority of a homeowner's payment is applied towards the interest on the loan instead of the original amount borrowed.Humans are predictable in behaviour because, behaviour patterns repeat themselves. Some will .....
The disturbing fact about front loading is it ensures you'll pay over three times the original amount borrowed. Thus, resulting in enormous profits coming straight out of your pocket and directly into your lenders.
' Most people (97%) never stop and take a good look at how damaging the system really is. Unfortunately, it's just the way conventional mortgages are structured here in America.
Average Homeowner overpays $60,000
In fact, the average homeowner in America is overpaying $2000 in mortgage interest every year, or $60,000 over the life of the mortgage.
'That's an enormous amount of money'. Says top mortgage analyst, Craig Romero. 'This is money that homeowners are needlessly giving away each year. Imagine what a person could do with an extra $60,000.
While gaining back thousands of dollars from these overpayments is a huge benefit, it's not the only one. Cutting up to 10 years from the term of a traditional mortgage is also another major advantage.
Banks Vs. Owner Financing
It can often be difficult to obtain a loan from banks, which is why owner financing is becoming very popular among home and real estate buyers. .....
It can often be difficult to obtain a loan from banks, which is why owner financing is becoming very popular among home and real estate buyers. .....
'I've been using the prepayment loophole for years'. Says Denver homeowner, Curtis Landau. 'I've actually been able to remodel my home and pocket about $25,000'all from the equity that was built so quickly.'
Americans must understand this prepayment loophole isn't something lenders are eager to share with their customers. If they did, they would risk taking a huge cut in profits.
With over 50 million mortgages in force, it's estimated Americans overpay their lenders in excess of $12 billion every year. It's no wonder this loophole is kept secret'lenders are undoubtedly getting rich off these interest overpayments.
Add A Few Dollars To Your Mortgage Payment
Many of us don't believe that a few dollars can make a big
difference. In a lot of cases that is .....
Written by Craig RomeroMany of us don't believe that a few dollars can make a big
difference. In a lot of cases that is .....
To see how well the prepayment loophole will work for you please enter his site at: http://www.wisemortgageinfo.com
Craig Romero is an author and mortgage analyst dedicated to helping homeowners maximize the investment in their homes.
______________________________________________________
Have You Considered A Hybrid Adjustable Mortgage?
If you're not sure if you should sign up for an adjustable rate mortgage (ARM) or a fixed rate mortgage, you're not alone. It is .....
About the Author
About Craig Romero:
To see how the well the prepayment loophole will work for you, please enter Craig's site at: www.wisemortgageinfo.com
Craig Romero is an author and mortgage analyst dedicated to helping homeowners maximize the investment in their homes.