What the Banks Don’t Want You To Know…

Have you ever wondered why nearly every bank offers free checking accounts?  It’s because banks make a large profit from the money you hold with them in the form of checking, savings and CD deposits.  The banks are able to take this money and leverage it, loaning 5-13 times your deposited amount in the form of auto loans, lines of credit and credit cards.  The difference in the rates they charge and what they pay you is their profit. 

We are going to show you how making  a simple change in how you use your checking account will not only save you thousands of dollars, but will allow you to reduce your debt faster than you ever thought possible.  But first, let’s talk a little about what the banks have offered us so far.

Get The Lowest Payment… 

Over the last 20 years, banks have continued to come up with new mortgage products with one theme in common: reducing the amount of principal you pay. The focus has shifted to providing their clients with the absolute lowest payment, ignoring debt reduction or ownership.  The average homeowner now holds a new mortgage for less than five years. 

Many homeowners will actually refinance in closer to three years, in which time they will hardly make a dent in their principal balance. By refinancing, they will incur new closing costs and start the 30-year cycle all over again.  The banks will continue to offer programs that lower their clients’ monthly payment, while increasing the interest they make, because it is so profitable.  This has never been more apparent than with the recent introduction of 40 and 50-year mortgages and the Option ARM which actually allows you to make a payment of less than the interest due while increasing your principal loan amount every month.  The flexibility these loans are supposed to offer really just removes the chance that many homeowners will ever actually own their home.  The one thing all these loans do is increase the amount of interest the customer pays to the banks.

A One Way Street…

Many homeowners want to pay extra but limit themselves because they know they can’t get that money back once they send it to the mortgage company.  As they increase their equity through extra payments and appreciation, their only chance to access that money is through a new mortgage (again paying the fees associated) or selling their property.  This issue is the main reason more home owners don’t pay down their mortgage even when they have the cash available.  Instead, the extra cash usually sits in a savings or checking account, earning next to nothing until it is spent (helping the banks, not the homeowner).

A Better Way…

On this site, you will have a chance to learn about a program called the Home Ownership Accelerator®.  This is a loan that puts your money to work for you and not the bank. It is a loan designed to empower the homeowner and put the focus back on owning a home and not just making payments.  So enjoy our site, you are about to learn what the banks really don’t want you to know.