How would you like to be completely mortgage free in less than a decade?

There's a new way to manage your mortgage and monthly cash flow so that you, and not some banker, get to squeeze the most use out of every dollar that comes in, and every dollar that goes out.  The strategy is called Equity Acceleration.  It's not such a big secret in Australia and the United Kingdom, where as many as 1-in-4 homeowners are accelerating the mortgages.

Join me on this exciting episode to discover how you can be mortgage free in 5 to 7 years on your principal residence or investment properties.

And, if you missed last week's episode, be sure to listen to From Broke to $10,000 per Month at Age 24 – Sean Gray.

Enjoy the show!

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How to be Mortgage Free in Five to Seven Years - Jordan Goodman
Today, we have a very exciting episode because we're going to tell you how you can cut your mortgage down and have it paid off in about one third of the time. Typically, that's going to be five to seven years but it could be seven to nine. In either case, it's going to be about one-third of the time. Our goal here is to share the knowledge and methods of actually owning your properties and your home mortgage-free much sooner than you imagined.

Think about this interesting statistic, in 1929, only 2% of Americans had a mortgage on their home. In 1962, 98% of Americans had a mortgage on their home. That's a huge difference. Take a look at the history of mortgages in America and you'll start to understand why this has changed so radically. Do you know where the idea of the amortization concept came from? It was actually developed after the great depression as a way to stimulate home ownership and of course banks' profitability. That is still true today. Until that time, most loans were five years in interest only and they had a balloon payment at the end of the five-year term. Bankers didn't determine that payments were a problem. They thought that those monthly payments were actually the biggest hindrance to someone owning a home. What they did is they dragged out the mortgage for as long as they possibly could to generate these low monthly payments. That made home ownership and affordability much, much easier.

Initially, they stretched it out to ten-year loans. That's what was common and then twenty and then 30-year loans. That seems to be the norm nowadays. For some of you, if you remember back in the mid-2000s, we saw 40 and even 50-year loan amortizations, which is just absolutely crazy. If you think about it, the longer that term, the more interest you're paying to the bank over the course of the life of that loan. Really, at the end of the day, who's winning there? Is it you or is it the bank? Your lower monthly payment is given up in lieu of much, much larger interest payments. Today, would you buy a $250,000 home and pay $500,000 for it? Of course, you'd say no but that's exactly what you're doing when you finance a property.

Mortgage Free: Leverage is a wonderful thing if it's used properly and real estate is a great vehicle to allow you to do that.

Don't get me wrong, 30-year fixed rate mortgages are great because it's good debt. It allows you to acquire a larger portfolio of rental properties than you could if you were buying all cash. Leverage is a wonderful thing if it’s used properly. Real estate is a great vehicle to allow you to do that. You have to understand that there's a cost involved and of course, your tenant is actually paying the mortgage off for you, not you. Your tenant is buying the property for you and that's okay.