Interest rates rising! Loan payments increasing! What can you
do? This article will help you decide.
Alternative Options For Rising Interest Rates
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.
About The Author
Thad Collins is the owner of CMRS which provides biweekly equity acceleration
programs to entrepreneurs looking to start a new business venture, for more
Article Source: http://EzineArticles.com/