Tampa, Florida - Home Ownership Accelerator is the new mortgage of choice for many home buyers looking for creative home financing options! Have you heard of this mortgage product...The Home Ownership Accelerator? This is a revolutionary home finance product sweeping our mortgage industry. I am starting to see more lenders, REALTORS, and consumers in Tampa, St. Petersburg and Clearwater asking about the product. As your Tampa Mortgage Source, I am going to give you all the information I know on it, in as much summary as possible.
I do have a disclaimer...I am a conventional loan gal, I love a 30-year or 15-year fixed rate loan, no prepayments, no hidden fees, as basic as it gets. So, when I first heard about this product, I was really skeptical. I have done quite a bit of research on it over the past couple years, took some baby steps, talked with other customers who already had the loan to see what they thought about it, took some more baby steps, got my certification to write this loan and am now happy to report I am a fan of the product. HOWEVER, IT IS NOT FOR EVERYONE!!! This is the key, it is a home finance product for someone who is financially in-tune, has positive cash flow, has great credit and has at least 20% equity in their home. With all that said, here is what my basic education of the product:
With the Home Ownership Accelerator, you will:
- Save thousands in interest
- Pay off your loan years earlier
- With no changes in spending
How it works:
- First, we finance up to 80% of the value of your home with the Home Ownership Accelerator
- Your paychecks are then directly deposited into your new line of credit, which will greatly reduce your principle balance
- When you need funds for any expense, it works just like a bank account
- You can use unlimited checks, ATM and online bill pay
- Your money stays in your account until you use it, keeping your loan balance lower, saving you an average of 5-6% in interest costs, instead of earning you an average of 1-2% in the bank
- Your paycheck drives your loan balance down, and even if you spend most of your paycheck each month, your average daily balance is much less
- Interest is calculated on your lower daily balance, so you save interest which leaves more money for principal
How you save interest:
- The money you didn't need stayed in your account, keeping your principal balance lower
- The monty you did need for expenses saved you interest, while it waited around to be used
- Your interest savings roll into next months principal. This effect compounds each month so you can pay off years earlier, compared to a traditional loan. In fact, your loan balance being so much ower offsets the impace of rising interest rates, even if rates double!
And the best part...you do this with no change to your current spending!
What makes this loan so different?
- A regular mortgage has a fixed monthly payment with a small impact on principal and you are sometimes charged a pre-payment penalty if you pay off early
- The Accelerator has no monthly payments, you have 24/7 access to funds, and you can get your money back if you need it. Your money is put to work at higher effecive rate and these is never a pre-payment penalty
Here is an example:
Net Income = $84,000
Month-end savings = 10% of net income
Current loan = $150,000, 30-year fixed at 6%
The 30 year fixed loan takes 30 years to pay off!
The Accelerator takes 11.2 years to pay off (a savings of 18.8 years in interest)!
The total interest paid on the 30-year fixed loan is $323,757 (APR of 7.44%)
The total interst paid on the Accelerator is $218,308 (APR of 6.17%)...$105,449 IN INTEREST SAVINGS!
You would have to be ablet o secure a 30-year fixed rate loan at 2.67% to pay the same total principal and interest as the Home Ownership Accelerator loan. (Where can you get a rate like that in Tampa?)
Interested in learning more?
For a free test-drive of the Accelerator's simulator, visit http://www.amerifirsthoa.com/ or email your Tampa Mortgage Source directly for a complimentary consultation.
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