This Credit Card Strategy Reduces Mortgage Interest
Here’s a way you can cut thousands of dollars (even hundreds of thousands of dollars) and years off your mortgage. This credit card strategy reduces mortgage interest and also can reduce the term of your loan by half. Everyone knows that one of the best ways to lower interest costs is to transfer the balance from a high interest rate loan to a lower rate loan. People do this with credit cards all the time, because it makes good sense. You’ve see these offers in the mail from credit card companies offering an interest free credit card to get you to sign up for a new account.
Let’s say you have three credit cards with interest rates of 11%, 18%, and 25% (yes, even in today’s low interest environment credit card companies still charge very high rates). You can save a lot of money by transferring the balance from your 25% card right? In this case, this credit card strategy reduces credit card interest. You can use the same credit card strategy to reduce mortgage interest.
Actually, you can save A LOT more money using this credit card strategy to reduce mortgage interest, with much greater cost savings than any credit card balance transfer.
But, if you have mortgage can you transfer your mortgage the same as you would a credit card? Can you transfer your mortgage balance to a 0% credit card? Actually no, and yes. Unlike the credit card, you can’t transfer your mortgage balance to a credit card, but you can transfer a portion of your mortgage balance to a zero rate credit card. Why would you do something like this?
Well, let’s see how this credit card strategy reduces mortgage interest for a family with a 4%, $200,000 mortgage. Normally, in the first year the principal is reduced by $3,223, but the interest is $7,280. In other words, the cost of reducing $3.223 of principal is $7,280. That’s like a whopping interest rate of 225%! Far more than the interest rate you’re paying on even the highest rate credit card.
How much do you suppose it would cost to repay a $3,223 credit card balance in one year? It would be LESS than $450 on a credit card that charges 25% interest!! If you used this credit card strategy that reduces mortgage interest you would cut $6,800 and 10 months off your mortgage.
Even if you used this credit card strategy that reduces mortgage interest with a credit card charging a cash advance fee of 5%, the savings are enormous:
Interest Saved On Mortgage $6,800
5% Cash Advance Expense – $ 160
Homeowner Saves $6,640
Now that’s what I call savings! The Mortgage Magic System works in this same way. It gives you a roadmap that is virtually guaranteed to save you tons of money and time off your mortgage. You owe it to your family to check out this ingenious system.