Paying Off Your Mortgage FAST!


—Slide 4: Another View —

Let's Use Another Example

We talked earlier (in Section 1) about making large, up-front payments to reduce the mortgage balance quickly so that more of your monthly payment goes towards paying the principal amount instead of interest.

But the question was asked:
where are the lump-sum payments of $5,000 going go come from.

Answer:
That is where your ALOC comes into play.

The ALOC account becomes the money source that makes the lump sum payments to reduce your mortgage loan fast. Let's illustrate an example.

The MMA program will instruct you when to advance yourself a lump-sum payment to pay on your mortgage:

ALOC Account
Starting Credit Line Balance: $60,000

Date
From
To
Advance from ALOC
Payment to ALOC
Balance Owned
Aug Beginning Balance     $2500
Aug ALOC

Pay down 1st Mortgage

$5000   $7500
Aug ALOC Living Expenses $4000   $11,500
Aug Pay Paycheck   $5000 $6500
Total ALOC   $9000 $5,000 $6500

What Does This Show

Line of Credit Available: $60,000
  Balance Forward from July: - $2,500
  An Advance from your ALOC - $5,000
  Pay Living Expenses - $4,000
  Balance Owned - $11,500
  Deposit Payment + $5,000
  Ending Balance Owned - $6,500
  • Your starting balance was $2,500
  • Your ending balance was $6,500
  • you never made a schedule payment to the ALOC:
    your income represented your monthly payment
  • you borrowed $9,000 from the ALOC
  • you only pay interest on the $6,500 balance
  • your ALOC become an interest cancellation account

  • your lump-sum payment of $5,000 to pay down your mortgage traded $23,304 of daily compound interest for a simple interest charge of $6,500

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mortgage payoff (part2)