One Friend Of Mine Was Doing Very Well In His Own Business As A Mortgage Broker

Category: Finance, Mortgages.

Seven years ago I finally gave in to the real estate frenzy and signed up for a class to obtain my real estate license.

If you don t know, you are probably not from this planet. I don t have to tell you about the huge amount of business being done in all areas of the real estate market for the past eight to ten years or so. One friend of mine was doing very well in his own business as a mortgage broker. I had little trouble making that decision knowing just how much money his office was generating. In fact, it was he that encouraged me to come to work for him. Besides, I could work part time and continue to work my first job.

There were huge gains in the appreciation of home values and many homeowners wanted to access their new found wealth. My new job description was contacting homeowners and offering them the" opportunity" to refinance their existing mortgage to obtain a better rate while paying off high interest consumer debt, or take a vacation, etc, buy an automobile. When I started in the business I knew nothing of mortgages, but I picked up on it quickly and had many opportunities available to me in learning about the industry. To receive your interest in the beginning of the terms is a nice deal. When I came to understand how mortgages were structured, I was shocked at how heavily a mortgage agreement weighed in the banks favor. It will take the average home owner, with a thirty year mortgage, twenty years of payments before they reach the halfway point. When you consider the average American home owner stays in their home only seven years, well that is a real nice deal for the banks.

That is to say, half of their payment applied to interest and the other half to principle. Just Google" mortgage calculator" and enter your numbers to take a look at how your term is amortized and what portion of your payment is going to interest. You are not prevented from paying ahead of your agreed upon amortized schedule. However, there is a light at the end of the tunnel. When you pay ahead of schedule you are canceling portions of interest. In his best selling book" Own Your Home Years Sooner" , Harj Gill explains how home owners can cut the terms of their mortgage significantly and save many thousands in interest charges by doing so.

You are probably wondering why I am repeating things you already know. "Sure, I can cancel interest but where is the extra money going to come from? " This question has been answered by an ingenious individual from Australia named Harj Gill. This is done without having to refinance your existing mortgage, and without any change to your monthly budget. It is worrisome to see some homeowners who have been paying for many years on a mortgage, only to refinance and be right back where they started from. This is simply a powerful new approach in handling money to gain greater flexibility and economic freedom. We can not expect our home values to rise any longer. It is time to take a sober look at what we can be doing better. In fact, the opposite is now taking place for many homeowners across America.

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