New Program Shows How to Use Your Home to Pay for Your Home

In addition to describing several common approaches to paying off a home mortgage early, Let Your Mortgage Make You Rich! introduces a method of money cycling that that uses the equity in your house to pay off your house

Sedona, AZ (PRWEB) May 28, 2006 -- A program that shows people how to cut years off their mortgages without refinancing and without paying extra is available in print form as of May 26, 2006, according to Let Your Mortgage Make You Rich! authors, John R. Barker and Lin Ennis. “Formerly available only on-line, we have arranged for lulu.com to do a print on demand version,” Barker says.

Let Your Mortgage Make You Rich! covers four early payoff techniques, only three of which are widely known. Those are paying a little extra, paying biweekly, and making an extra full payment per year by adding 1/12th extra payment per month. In addition, the authors introduce a little-known technique of using a home equity line of credit (HELOC) to chunk down mortgage principal by thousands of dollars several times a year.

“It’s a way to use your house to pay off your house,” says Ennis, a former school teacher. “We started doing it a couple of years ago, and early results showed we could pay off the 28 years remaining on our home in Sedona, Arizona, in only seven years and three months.”

Following their technique, the HELOC is repaid automatically by funneling normal income and expenses through it weekly. Saving tens to hundreds of thousands of dollars in mortgage interest is achieved largely by capitalizing on the difference between how mortgage interest is charged (daily on the entire balance, payable in arrears) versus how HELOC interest is charged (daily on the day’s balance, payable in the future).

“In fact,” adds co-author Barker, an Internet marketer in Sedona, “even though banks heavily promote home equity loans and lines of credit, they don’t show you how to pay off your house sooner. Usually a HELOC is promoted for home improvements or vacation money.”

Bill Gifford, of RM Group/Mortgage Planners in Las Vegas, NV says, “In my 15 years in the mortgage business, I have never come across something so simple that allows everyday individuals to leverage their equity and pay off their homes. I wholeheartedly recommend this program to all of my clients & friends.”   
   
While most early payoff programs tout one or another technique, Let Your Mortgage Make You Rich! doesn’t seem to have a clear favorite among the most-common techniques used, such as adding 1/12th of a payment extra to principal each month, or making a half payment every two weeks instead of the regular payment monthly. In fact, the authors suggest ways to combine the techniques for greater leverage.

However, it is the approach that consumes the last half of the book that is innovative, and the only method that doesn’t require paying extra. It’s referred to in the heavily illustrated e- or print- book as “money laundering,” in the sense that money has to pass from one “tub” to the other before it can be used in certain ways. Then it’s put back. This cycling technique is what pays off your home and why the authors hold that it doesn’t require making extra payments.

“It’s all about moving your money around,” says Ennis, a full-time writer who admits to checking bank statements online for inspiration when creativity lags.

“Moving it in ways that are financially advantageous,” adds Barker, who served in the Air Force in White House communications under Presidents Ronald Reagan and George H.W. Bush.

Let Your Mortgage Make You Rich! is available from a website by the same name, http://www.letyourmortgagemakeyourich.com, in download format only; or in print from Lulu at http://www.lulu.com/mainpage.

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