Mortgage Amortization Schedule - Why it is Cleverly Set Up to Work Against You

I get this question all the time. If I have a goodEven an eagle-eye read-through of your bills and your
mortgage and pay bills on time, why should I even caremortgage statement each month will not catch this
about taking any further action with my mortgage?method.
Good question.There is a simple method that will allow you to allocate
The way the bank charges you interest ismore of your mortgage principal to you mortgage
sophisticated. You may not even realize you arebalance rather than interest. The key is to use the
paying more than you have to and this is not your fault.mortgage acceleration method.
Banks set up their system so that you end upYou set up a Home Equity Line Of Credit (HELOC)
spending more on your monthly mortgage repaymentaccount and draw down just the right amount from
towards interest rather than principal in the early years.your HELOC to pay off your mortgage. Once the
For example, if you have a $1,200 monthly repayment,mortgage balance is paid down to a certain limit the
it common to spend $1,100 in interest and $100 inbank reallocates more of your monthly payment to
principal.principal rather than interest.
You can go directly to and use their mortgageThis may sound confusing but you can search Google
calculator to see how much you are paying in principalon this and learn more about the mortgage
and interest each month.acceleration programs
However, did you know you can and have the right toStaying on top of your mortgage finances can
change the situation in your favor each month?sometimes feel like a full-time job.
You could end up spending $900 in interest and $300And most of us already have a lot to deal with. In
to principal should you choose to with a little moretimes like this, it is easy to get tempted by promises to
applied towards your principal payment every otherfind quick fix solutions that will help you take control of
month.your situation.