World's Most Honest Mortgage Accelerator Review

Classical Example with higher rate on HELOC (Part 2 of 2)

We are testing Mortgage Accelerator software from a company called StreamlineYourDebt. This software also has the ability to import your bank statement and recalculate paying off date accordingly. This feature is very nice; it allows users to see how large purchases or deposits will impact his pay off date. This feature is not shown in our screen shots. But you will fall in love with this feature once you begin to follow this software.

Step 5, How is primary Mortgage look

This is the amortization table when directed by the software. $5000 is applied to primary mortgage every few months. The primary month is coming down fast as in a elevator.

Step 6, Summary page

Both the interest saving and paying off earlier are achieved. At first glance, this home owner save $419k by mortgage acceleration and shortens his paying period by half. Wonderful or not? Let's check it in next section.

Final Step, How much do we saved using this method

This person has $1500 extra each month, we think it will be FAIR to say he will apply the $1500 into his primary if he doesn't have HELOC and knows nothing about Mortgage Accelerator. The thing is, this is the most people over looked. Most mortgage acceleration selling clause takes advantage of this fact.

How much is the interest saving without Mortgage Acceleration? Using the amortization in Excel from the Mortgage forum, we can calculate how soon he will pay off. The result is 183 payments, with total interest payment to the bank at $353,379. Click here for the populated spreadsheet for this calculation.

How much is the interest saving using Mortgage Acceleration? This includes both interest payment to primary mortgage and HELOC. The interest paid into primary mortgage is 347k$. The interest paid into HELOC is $12k. The total is $359k. Click here to see the populated spreadsheet for MA.

The total money saved from Mortgage Acceleration is $353k-$359 = ($6k). The borrower may actually lose money in the example. It is very hard to coming ahead in this case.

Why people still like Mortgage Acceleration

Put the money in a HELOC, most of it is available at any time. Put it directly into the mortgage and you can never get it back unless you refinance. In the example above, the HELOC Max is 120k, the person almost always have 100k of available balance you can get in an emergency. So he can put his emergency fund into his mortgage.

Mortgage Acceleration Software helps a person see clearly what his financial situation is. It helps a person set his goal clearly. It helps promoting saving and preventing blindly spending.

Thank you for reading this far, join the Mortgage Forum and leave your comments about Mortgage Acceleration.