mortgage reduction

The concept of mortgage reductions has become a growing trend among home owners, who find they can save more money, by putting an extra amount of money, each year, on the loan, without causing a significant strain on their income. A home mortgage reduction has been proven to be one of the quickest ways to payoff a home loan in less time than the original loan terms. Many home title lenders are aware of this simple fact, but many don't make it clear to their borrower because the result is a significant reduction of the interest paid on the agreement.

The key element to this repayment option is the use of the simple concept of paying an extra monthly payment amount over a period of time each year. The more often an extra payment can be made will hasten the mortgage reduction even more. However, to successfully reduce the number of months that it takes to repay the home loan in full, a structured repayment schedule will keep the borrower on track. There are a growing number of mortgage marketers who have established a new business service by offering to assist borrowers by tracking their mortgage reductions repayments and auditing them, as well, to assure that the normal and extra payments are being properly applied to the loan. Their services vary somewhat, and some purport to have no fees while others have minimal fees.

As a borrower begins the process to accelerate their account balance payoff, the initial details of the mortgage are needed to establish a schedule of payments from number one through the final payment. This schedule includes the extra payment set at constant intervals throughout the loan period resulting in the mortgage reduction occurring in a significantly less number of months than the original loan. One example of a 30-year mortgage that is rescheduled reveals that one extra payment made every six months divided into three payments over the month (one normal, two half amounts) results in the loan being paid off in 17.7 years.

The interest rate, the monthly payment, the original loan amount, and the scheduled number of extra payments per year are the variables for these accelerated refinance agreements. The amount of income the borrower can spare to apply to mortgage reductions will determine the number of extra payments he or she can afford. It takes wise and determined borrowers to stick to accelerated repayment plans that will effectively get them out of debt much more quickly than those who let the extras payments slide unpaid when they have other purposes to use the money for.

Biblical advice that will motivate borrowers to stay the course and complete scheduled mortgage reductions can be drawn from Paul's encouragement to not be weary in well-doing: "for in due season we shall reap, if we faint not" (Galatians 6:9). To reap the benefits, borrowers must look forward to the reaping so they will faint not.

adopted from: http://www.hitvahot.com/2008/09/mortgage-reduction.html