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The Homeownership Accelerator
One of the most innovative mortgage products to come along in forever is the Homeownership Accelerator, a first mortgage credit line designed to help you pay off your mortgage much faster than a typical fixed rate, without changing your spending habits! Rivercrest Mortgage Services is proud to have been one of the first companies in the Northwest to offer this product and since Lisa and I originated an HOA loan for ourselves, I can personally attest to how great it is.
Here's how it works. First, you get the loan through Rivercrest Mortgage. Go for the maximum loan to value. (As a credit line, you only make payments on the amount you draw, so your equity remains intact.) Use the line to pay off your existing mortgage(s), revolving and installment debt, everything. Now here's where it gets different. Deposit all your monthly income into the line. Deposit all your low yield savings accounts there, as well. Your HOA account has now replaced your checking and savings accounts.
Now pay for everything else -- groceries, utilities, insurance, garbage, satellite/cable, ballet lessons, etc. -- with the credit card tied to your line. Congratulations. You've just saved upwards of 8.00% on every penny of your income for the month, as you didn't pay that interest on your mortgage. For every day your money was invested in your HOA account, your principal balance was reduced by that amount. The interest which accrues on that balance was significantly decreased, even for as little as a month. You just saved yourself hundreds of dollars in interest, and if you consolidated all your debt into the Homeownership Accelerator, maybe even thousands!
Know what else is great? You've consolidated all your debt into a secured asset line tied to your home. The interest that does accrue on that line is tax deductible. You've cut your mortgage interest, greatly accelerated the speed at which you'll pay off that mortgage, made all your credit debt tax deductible and made your life a whole lot simpler.
Asset Management is not about rate. Asset Management is the efficient use of income and secured credit to maximize spending and investment opportunities by lowering the percentage of your income dedicated to servicing debt. To fully grasp how important this tool can be, YOU need to be able to do two things:
1. Change the location of your primary checking account.
2. Decide that Amount of Interest Saved is more important to you than Interest Rate.
The Homeownership Accelerator cash flow concept is the most efficient use of income and secured credit, an innovative financial tool which enables disciplined borrowers to maximize investment opportunities, accelerate payoff, build wealth, and reduce debt. There is no other mortgage product this flexible or this powerful.
Sydney Australia is one of the top ten most expensive places to live in the world. Australia is home to the asset management concept, and the HOA loan is used extensively by homeowners in Sydney. The average time it takes to completely pay off their mortgage is 8 years.
We think the Homeownership Accelerator is a terrific product for many of our clients. We've had many repeat borrowers use it for their second homes and rental properties with great results, as well. It's not for everyone, but it may be for you. Give us a call today!
(503) 557-9145
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