When you have a mortgage, the interest is compounded daily on the principle balance. With monthly payments,
you make 12 payments per year. The payment, which goes mostly toward interest, lowers the principle some. Then
interest is compounded daily on this principle balance until the next payment.
With our system, payments are made
by electronic transfer every two weeks. This may sound like making 24 payments per year, but it's not. There
are 52 weeks in a year; divide that by two, since we transfer the funds every two weeks, and it works out to be 26 bi-weekly
payments. This effectively causes three payments in two of the calendar months. These two payments are applied
toward the principle balance, causing an accelerated or early pay-off.
Money applied directly to principle can increase
your equity in the property by up to 300%, depending on how long the term of the loan. With the payment applied directly
to principle, it causes the principle balance to lower, saving on interest. With interest charges lower, more of the
bi-weekly payment is applied toward principle, continuing the cycle.
This results in Accelerated Pay-Off, Less Interest paid and More Equity,
More Quickly!
