Your Frequently Answered Questions...

Can I afford to prepay my mortgage?

With the Equity Builder system reducing your mortgage is surprisingly inexpensive!  For instance, on a 30 year loan of $100,000.00 @ 10.5% interest, your Principal Reduction Payments begin at less than $50.00 a month.  Most people are shocked at how small their Principal Reduction Payments are and with the Equity Builder system you are never obligated to start, or to make a Principal Reduction Payment at a time when it is financially difficult for you.  You determine when to make Principal Reduction Payments and then you watch these small payments eliminate a full month of interest, INSTANTLY!  It is amazing how these small Principal Reduction Payments can eliminate a full payment from your mortgage.

Can I prepay my mortgage on my own?

There are several required, necessary steps, all of which must comply with Principal Reduction guidelines.  Very few homeowners successfully reduce the principal on their mortgage and save thousands on their own and based on the terms of your mortgage, it can be very confusing to correctly reduce your mortgage.

Can I send in any amount I want? Whenever I want?

Absolutely not!  Doing so can result in one or more of the following situations to occur:

You must send in the exact figure as calculated in The Equity Builder. The figure changes each month, so The Equity Builder has been developed to keep you organized and show you exactly what amounts to send. We also provide you with the necessary wording to make your lender properly apply your Principal Reduction Payment, so that you, not the lender, get the biggest benefit from your money.

My mortgage coupon has a section for additional amounts. Can I just write in the amount of my prepayment there?

No! Your lender is making it very easy for you to send them extra money that will save you little to no interest. This is the perfect example of incorrectly prepaying and can result in a number of problems, including the ones noted above..

I have already made a few prepayments on my own. What does this mean for me?

Good for you!!! We applaud your effort. Now, let us help you make more Principal Reduction Payments with the correct and proper information, in a trackable and organized fashion, so that you have the best opportunity to successfully control your financial future and the best chance to save as much of your hard earned money as possible.

What if my Mortgage has a “Prepayment Penalty”?

Most loans with a “prepayment penalty” only have a penalty period for the first 2 to 5 years of the loan. And even then, only penalize you if you make a principal reduction of more than a certain percentage of the total original loan amount, in any one of those penalty years. For instance, if your loan is $100,000.00 you can make principal reduction payments up to $20,000.00 in any year without a penalty. After the penalty period is over you can reduce your principal and save yourself as much money as you choose.

How will The Equity Builder system help me make correct Principal Reduction Payments?

The Equity Builder is a customized prepayment system, which is designed specifically for your mortgage. The Equity Builder system, by keeping you organized and informed, helps you gain the maximum benefit from your Principal Reduction Payments.

What do I have to do to get started?

It is as simple as ordering your customized Equity Builder and start saving!!!

How much can I expect to save right away?

Depending on the amount of your Principal Reduction Payments, you can expect to save hundreds of dollars in interest savings with each and every Principal Reduction Payment that you make using The Equity Builder system and thousands of dollars over the life of your loan.

Why hasn't anyone told me about this?

Your lender certainly isn't going to tell you how to take money out of their pocket.

Is this legal?

The Equity Builder system is geared to the Federal guidelines which govern standard conforming, fully amortized loans.  Most mortgages let you make Principal Reduction Payments without a penalty to you.  Your borrower's right to prepay is always spelled out on either the original Note or an attachment to the Note, that you signed when you got your loan.  If you have a question about your specific loan, please e-mail us at customerservice@burningthemortgage.com .

Will I lose my tax deduction?

No! At least not until you pay off your mortgage. Remember you will continue to make your “regular” monthly payments, along with your Principal Reduction Payment. Therefore, you will continue to have interest, even though you will be reducing your principal and shortening the term of your loan. Your tax deduction is not affected until you completely pay off your mortgage and then wouldn't you rather invest your own money, making a much better return, than the refund the government will give you?

I'm only going to stay in my home 5 to 10 years. Should I prepay my mortgage?

Yes, then when you move you take much more equity with you and roll it over into your new home.

I have a new home and a new mortgage. What can the Equity Builder do for me?

This system allows you to turn a 30 year mortgage, with the lowest payments you can get, into a 15 year (or shorter) mortgage.

What is the cost of The Equity Builder?

There is a one-time cost of $375 for The Equity Builder system for all fixed rate mortgages. A small price to pay for the greater savings you WILL receive each and every month you use this system.

What if I have an adjustable rate mortgage?

We have set up the system so that our customers with adjustable rate mortgages can also save. There is a $50.00 “redraw” fee each time your interest rate changes, but it is nothing compared to the amount you will save on each Principal Reduction Payment you make.

How does The Equity Builder compare to Bi-Weekly Payment or other Mortgage Acceleration programs?

The first thing to remember is that these program are created, sponsored and serviced by lenders!!! And lenders make their money by getting you to pay interest!!!

Bi-weekly programs auto debit half of your regular principal and interest payment from your checking account every two weeks…the effect is that you shave one month off your loan each year and your lender continues to collect more than 95% of their interest from you. For this “privilege” you usually get to pay a set up fee, a yearly maintenance fee and your lender gets to auto debit from your checking account, even if your financial situation changes or something unexpected occurs.

• The Equity Builder allows you to determine when you want to payoff your loan and shows you how to make small Principal Reduction Payments that will eliminate the interest the lender is charging you.
• The Equity Builder allows you the freedom to determine when and how much you will prepay, based on your financial circumstances.
• The Equity Builder never requires you to give access to your checking account to someone else.
• Accelerator Accounts are just a fancy way of packaging a new adjustable rate loan. You have to qualify and meet a minimum credit score. You pay yearly fees and are required to direct deposit your payroll checks into their account. They use your money to make more money, charge you interest and if you are not careful you end up with more debt at the end of 10 years!
• The Equity Builder is not a new loan, there are no credit checks or salesmen.
• The Equity Builder shows you how to use your money to your advantage and get out of debt, not into more.
• And the Equity Builder never requires you to give up control of your bank accounts your paycheck or your financial future.
  

Do the comparison and then let the Equity Builder benefit your life!!