FAQ - Frequently Asked QuestionsCommon Questions Answered Here
Mortgage Magic System FAQs. If you don’t see the answer to what you’re looking for, please contact us and we will get back to you promptly. Click each bold-faced topic to see or collapse the answers.
How Much Can I Save
This is the amortization schedule for a conventional 30 year mortgage of $250,000 at 3-1/2%:
and here’s the same loan using the Mortgage Magic System:
For a full explanation, watch this video
What’s This Got To Do With Retirement ?
How Does It Protect My Retirement?
Why Haven’t I Heard About This?
How Does Mortgage Magic System Grow Net Worth?
Mortgage Accelerator VS. IRA
Chart shows how quickly net worth grows using the Mortgage Magic System compared to a typical retirement account. Apples to apples comparison, with $3,000 invested annually earning 6% compared to a 6% mortgage. A retirement plan that starts with the Mortgage Magic System provides FAR more money for retirement. Chart shows what an IRA or 401K would have to earn, dollar for dollar, by comparison. Example shown for typical $300,000 mortgage at 6%. Any other investment would have to earn 600% in year 1 to match the Mortgage Magic System. No other investment plan compares for building your wealth
Will This Really Work For Me?
How Do I Use It?
There are basically two ways to go: using your own funds, or using a revolving line of credit. Our System supports both. Here are the key points of each:
Using your own funds: when you have saved a predetermined amount of money, you transfer it to your mortgage to pay down principal. This is akin to investing your savings in your mortgage. Your money earns a tax-free return equal to the mortgage interest rate. So, if you have a 6% mortgage, your savings earn 6%, tax-free.
Using a revolving line of credit: this has the effect of combining your mortgage account with your checking account. Each time you make a deposit into the credit line, it reduces the mortgage balance. By reducing the average daily balance, less interest accrues for the period: result: less of your monthly payment is for interest, with more going to reduce principal. The benefit here is that you are using the bank’s money to reduce your mortgage! Don’t get too hung up on the method or arithmetic: you can even change from one method to the other. The key is that
each dollar you invest in the accelerator cancels many times its value in mortgage payments.
Do I Need A HELOC?
You can use either a HELOC, an overdraft line of credit (offered by many banks as a feature of your regular checking account), or most types of revolving loan accounts. The overdraft line is convenient and works well, as long as the bank doesn’t charge extra fees. You can also use the revolving credit features of a credit card account (but we don’t recommend using a creditcard), providing the card doesn’t charge unreasonable fees. If you are unsure which way to go, contact us for a consultation
Do I Need A Large Credit Line?
Note: We do NOT advocate replacing your mortgage with a HELOC or other line of credit. That is specifically not a part of anything in our system. We specifically advise that the line of credit used shall NEVER be more than 2 times your monthly income.
Is My Information Secure?
- Proprietary financial software that provides long-term guidance.
- Real time reports of transfer dates and amount.
- Real time reports of savings realized and projected.
- Monthly Analytic Section that tracks your progress.
- Monthly emails and timely messages provide information and ongoing guidance.
- Our guarantee the System accurately projects your savings and outcome.