Alternative Options For Rising Interest Rates
by: Thad Collins
As interest rates have risen in the last six weeks from record lows,
homeowners are once again face with finding viable options to reduce
the amount of interest paid on their home loans. The rush to refinance
provided borrowers with good to excellent credit the opportunity
to take advantage of low interest rates, that helped to reduce their
monthly mortgage payments, which was the only benefit provided by
the lowered rates.
The one option that still eludes most homeowners, and is recognized
and supported by financial and government organizations including
Fannie Mae, is Biweekly Equity Acceleration. This industry has made
great strides to become a viable tool to help homeowners reduce their
mortgages, while building equity in their homes up to three times
faster. Biweeklies provide another important benefit versus refinancing;
it allows the loan to be paid off sooner than the original stated
term.
A mortgage company will not accept a half payment except by special
arrangement, and this sort of arrangement is rare. To begin a Biweekly
Equity Acceleration Program the homeowner deals with a service provider
like Consumer Mortgage Reduction Service, or another company. There
are about 30 companies in the United States that specialize in biweekly
equity acceleration, and they provide mortgage reduction services
directly to the homeowner.
These programs are easy to initiate and do not require refinancing,
just complete a few short sign-up forms, and the biweekly company
takes over from that point. The process does not change your current
mortgage arrangements, just the way your payments are made, instead
of one monthly payment the mortgage is paid one half every two weeks.
These biweekly payments are automatically deducted from the clients
checking or savings account, and applied to the loan in a way that
reduces the principle amount owed every six months.
Today’s consumers are more than ever
trying to reduce the amount of debt they have, and this is evident
by the rapid rise of
Debt-Consolidation companies, but the largest debt a consumer has
is, the home mortgage. The majority of homeowners overlook this fact
when planning to reduce their dept, yet the use of biweeklies can
decrease their mortgage substantially, in a shorter period of time,
usually cutting the term by six to ten years.
And, with the rising interest rates, trying to reduce their debt
load including the mortgage will become a bit more difficult without
taking advantage of biweekly programs. A 30-year fixed rate mortgage
for $150,000 at 6% interest would be paid off 6 years earlier, and
would save the homeowner up to $30,000 in excess interest payments.
The amount of time and interest saved depends upon the amount of
the loan, and the interest rate.
“Biweekly Equity Acceleration has been in existence for over
20 years, and has allowed millions of homeowners to pay off their
mortgage in less time, while building substantial equity faster,” said
Thad Collins owner of Consumer Mortgage Reduction Service whose website
is located at; http://www.consumermortgagereduction.com “While
saving the homeowner up to $60,000 in needless interest payments,
without refinancing, and this is accomplished regardless of the current
interest rates,” he continued.
Interest Rates have become a great concern for homeowners, and those
who may be contemplating purchasing a new home, but with alternatives
to rising rates like biweekly equity acceleration programs, these
concerns can be eased. If the average homeowner can save money per
year in any interest rate environment, then the use of biweeklies
provides a solid foundation to the purchase of a new home.
Mortgage
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