Pay Off Your Mortgage In Half The Time

Posted on July 16, 2010
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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.

Take the investment you are looking at and the RULE OF 72 will calculate the number of years it will take for your account value to double. It will tell you how long it will take for the money you owe to double, as well.

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).

If this does not excite you, consider this example: If you had a penny that doubled every day for 30 days, amazingly, it would grow or compound to almost 11 million dollars in just 30 days.

The very wealthy Baron de Rothschild was once asked to name the seven wonders of the world. He could not, but responded by saying, “I cannot, but I know that the eighth wonder is Compound Interest.”

It is so important to not only earn a higher percentage return on your investments, but to pay a lower percentage interest rate on your debts and eliminate as much debt as possible. We don’t want to make the financial institutions rich. Let’s keep as much as we can for ourselves and put our money in a position to take advantage of the RULE OF 72 instead of being a victim of it.

Most of us have a HUGE loan called a 30 Year Mortgage. The RULE OF 72 is working against us here. Over that 30 year period the banks watch their accounts grow in an exponential fashion, as we pay tiny amounts of interest against the full loan amount with each payment and large interest payments to them.

But there is an answer! We must pay off that mortgage faster. And, there are a few simple ways to do that:

First, you can simply send in additional money each month for your mortgage company to apply directly to your principal loan balance.

Another option is to use a bi-weekly payment plan. Most mortgages can be set up to utilize one of these. If your bank does not, do an internet search on: “bi-weekly mortgage plan.”

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.

I personally use one of these software programs and have shared it with my readers. It allows me to cancel out interest on my mortgage loan, using money that I would usually deposit into my checking or savings. It also uses an ADVANCED LINE OF CREDIT, which is open-ended and calculated not on the MONTH-END BALANCE, but instead on a DAILY PERIODIC INTEREST RATE. This is different than mortgages use. It puts the power into the homeowners hand by allowing them to use all of their cash and income throughout the month, in their favor, before it is needed to pay their monthly bills. This takes away the banks power to make money on the homeowner’s money each month, as it sits there waiting to pay the bills.

There is a whole section teaching this in my book 3 SECRETS OF MILLIONAIRES. Simply do a Google search. If you would like a free analysis, visit the PayOffYourMortgageInHalfTheTime web site. You will know exactly when to expect to be mortgage free and how much money you will have saved doing it this way. Do your research! By setting up a plan to pay off your loans faster, you will be surprised at just how many thousands of dollars you will keep for yourself, instead of giving it away to the bank.

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.

Learn more about how to eliminate your mortgage. Stop by Mike Koller’s site where you can find out all about 3 Secrets Of Millionaires and what it can do for you.

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