What is a mortgage accelerator?

A mortgage accelerator is traditionally refered to as any program which allows a homeowner to pay down a mortgage balance faster and more efficient.

Common mortgage accelerators include accelerated amortization schedules, bi-weekly mortgage programs and now mortgage cycling programs.

Accelerated Amortization Schedules - This concept is to pay the interest due on the next months mortgage in advance with the prior months mortgage. This will accelerate the mortgage payoff but requires discipline and understanding of an amortization structure. This is the slowest method to payoff.

Bi-Weekly Mortgage Program - This concept utilizes the formula of dividing your monthly mortgage payment in half and paying that half every two weeks. This results in a total of 26 half payments in a year or 13 full payments and a 7 year reduction on the mortgage payoff. This also required a large amount of discipline and additional funds.

Mortgage Cycling - This concept uses a Line of Credit to make advanced payments on the 1st mortgage while depositing income into the line of credit to reduce the effective interest rate. The Money Merge Account is an advanced program which maximizes savings and ensures effectiveness of this concept.

A mortgage accelerator is reccomended to most homeowners no matter what their current wealth or investment structure.