Most of the families end up paying their mortgage loans for as long as 30 years. What’s involved is an incredible amount of interest payment and significant drop in savings. Biweekly mortgage payments were seen as an effective way out of the financial mess. While there are definite benefits in biweekly mode of payments, they are not very significant.
Mortgage cycling, on the other hand, is a bold financial plan assuring definite and significant savings. Generally, a large part of your overall mortgage payments is paid as interest on the principal amount. Mortgage cycling works on the theory that lesser the principal amount, lower will be your interest payments. This simple idea is the basis of the mortgage miracle, that is mortgage cycling.
Now, mortgage cycling requires large half yearly equity payments which reduce the principal amount and consequently the interest too. If you don’t have the money in hand, you can always save the money over a period of six months given that your small savings have a cumulative effect in terms of interest savings.
A saving of around five thousand dollars for six months makes you the ideal candidate for mortgage cycling. As you pay these large installments every six months, the principal amount chargeable for interest gets progressively lower and the interest rates sink with each payment.
You can also use home equity loans to make the half-yearly equity payments. This way you make the equity payments in time and get extra time to save up for the next round of home equity loan payment too.
The best part of mortgage cycling is that it does not depend on the condition of economy. The theory of mortgage recycling is simple. The principal amount gets smaller and so does the interest rates. Thus no matter what the prevailing interests are, your savings will be higher compared to any other alternative.
Mortgage cycling is effective for all types of mortgage debts. The determining factor is: Are you eager to pay off your mortgage debt quickly? Many say that mortgage cycling is not for everyone given that it requires large payments. But the truth is that mortgage cycling promises phenomenal benefits as no other financial plan does. In exchange it requires financial prudence and well planned saving.
Craig Romero is the Author of Mortgage Cycling Revealed. To learn more about saving thousands on your mortgage visit us at http://www.mortgagecycling.com
